Marketing Project

INTRODUCTION
Sales promotion refers to the short-term incentives to encourage sales of a product or service. It consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and greater purchase of products or services by consumers.
PURPOSE OF SALES PROMOTION: Sales promotion tools vary in their specific objectives. They may be used to attract new customers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion usually targets brand switchers because non-users and users of other brands do not always notice a promotion. Sales promotions are thus also seen as a tool for breaking down loyalty to other products. Sales promotions also let manufacturers adjust to short term changes in supply and demand and differences in customer segments. They also let manufacturers to experiment by varying prices. Sales promotions also lead to greater consumer awareness of prices.To use sales promotion, a company must set objectives, select the right tools, develop the best program and implement it and evaluate the results.
M S RAMAIAH MANAGEMENT INSTITUTE
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OBJECTIVES OF SALES PROMOTION: The specific objectives set for sales promotions will vary with the type of the target market. For consumer promotions, objectives include encouraging purchasing of larger sized units, building trial among non-users and attracting switchers away from the competitors brands. For trade promotions, objectives may include; including retailers to carry new items and higher level of inventory, encouraging off-seasonal buying, ofsetting competitive promotions, building brand loyalty of retailers and gaining entry into new retail outlets. The sales force promotions help in encouraging support of a new product or model, encouraging more prospecting and stimulating off-seasonal sales. But most importantly, sales promotion should be focused on consumer relationship building.
SALES PROMOTION TOOLS: Many tools can be used to accomplish sales promotion objectives. Descriptions of the main promotional tools are as follows; Consumer Promotion Tools The main consumer promotion tools are as follows; Samples: They are offers of a trial amount of a product. It consists of inviting prospective purchasers to try the product without cost or at a lower cost in the hope that they will buy the product. Samples may be free or discounted. Coupons: Coupons are certificates that give buyers a saving when they purchase a specified
product. Coupons can be mailed, placed in sales promotions or included with other products.
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Price Packs: Cents-off deals or price packs offer consumers savings by way of reducing prices that are marked by the producer directly on the package. Premiums: These are the goods offered either free or at a low cost as an incentive to buy a product. Premiums may be in-pack or on-pack (outside the pack). Prizes: They are offers of chance to win something such as cash, trips or goods by luck or through extra efforts. Contests of talent and sweepstakes or draws the most popular prize offering promotions. Tie-in Promotions: Tie-in promotions involve two or more brands or companies that team up on coupons, refunds or contests to increase their pulling powers. Cross Promotions: Cross promotions involve using one brand to advertise non-competing brand. Advertising Specialties: These are useful articles imprinted with an advertisers name, given as gifts to consumers. Pop Promotions: Point of purchase (Pop) includes displays and demonstrations that take place at the point of purchase or sale.
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I.
STATEMENT OF THE STUDY The study was on the Comparative analysis of four FMCG giants focusing upon the brand preference of the consumers. Under the project a comparative study was done by taking the four leading FMCG companies working in India. The four companies are Hindustan Unilever Limited and, ITC, Nestle and Procter & Gamble. These
companies are in competition with each other. These companies focus is on their advertising. The companies have a wide portfolio of products. Consumer goods are those goods that are used widely by the consumers in their day to day life. So a major task is to make these products available to the consumers. Hindustan Unilever Limited is the number one company in India in FMCG category. It has a presence in laundry, skin care, hair care and oral care. The study was focused on these three categories, what product portfolio of these companies have. The study moves around the comparison of the four companies, regarding their brand preference. Project also involves the consumption patterns of the consumers, the type of products they are using, what products they would like to use in future, to determine their satisfaction levels. Project also involves the study of the perception of the consumers towards these the companies.
II.
RESEARCH OBJECTIVES: 1. To find out the opinion of customer about the perfect promotion technique of fmcg products. 2. To find out the ways to promote the products so that they reaches the high standards. 3. To know how well the product fmcg products are withstanding on their words, which makes it to increase the sales. 4. Study the impact of sales promotion on consumer brand preference in FMCG sector.
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III.
RESEARCH METHODOLOGY
RESEARCH DESIGN Research design for the project is Descriptive research design. A descriptive research design is the one which is description of the state of affairs as it exists at present. It includes survey and fact finding enquiries of different kinds. In it detailed study of the awareness of brand among customers will be done. The information will be collected with the help of an unbiased, non-disguised and structured questionnaire.
SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or procedures the researcher would adopt in selecting items for the sample. Sample design chosen for the purpose of the study is simple random sampling.
SAMPLE SIZE The target sample for this study is 150 respondents in various areas of Bangalore that was done independently and age 20-45group of including business class, service class, and students.
DATA COLLECTION Data will be collected through both by primary and secondary sources. Primary Data: Primary data will be collected through, a structured questionnaire. Personal survey will also help in collection of data. Secondary data: Secondary data will be collected through website of the company, journals and magazines. Reports published by the various research organizations.
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DATA ANALYSIS After collecting the data, data analysis was done in which use of graph, charts and tables and many other statistical tools were taken to do the analysis of the present situation
IV.
LIMITATIONS OF THE STUDY 1. An in depth study could not be done because of time constraints. 2. The study has been conducted in Bangalore city only. 3. Biases of customers could affect the results of the survey.
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V.
REVIEW OF LITERATURE
SALES PROMOTIONS:
Sales Promotions consist of many devices aimed at generating active Customer response within a short period of time. Interestingly, most of the effort has been receiving an increasingly large share of the advertising/Promotion budget, particularly for Promotion oriented toward the trade. Coupons and Promotions play a large role on the web as well. Over 50 percent of both first time and repeat buyers were influenced by either coupons or free shipping. Promotion competes with advertising for budget it also provides a different approach to influencing sales. In the case of advertising, the basic approach is to create or increase a desire on the part of the Customer for the product itself. In contrast, most Promotions implicitly assume the level of desire for the product is fixed and try to "close the deal by providing incentives to purchase. This is, of course, an oversimplification. A" get them while supplies last" ad focuses on immediate response, and Promotions, Involving free samples aim at generating repeat business. Nonetheless, Promotions, many of which involve temporary price reductions, are seen as a form of marketing effort that is more aggressive and oriented toward immediate results. In reality, one if the few ways product managers can obtain a short run change in sales or market share is to use sales Promotion activities. In general Promotion falls in to three main categories: 1. Final Customer Promotion 2. Manufacturer Promotion to the channels or Trade Promotion. 3. Channel originated Promotion, or Retailer Promotion.
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Final Customer Promotion comes directly to the Customer from the manufacturer. Trade Promotion, in contrast, is directed at intermediate channels of distribution in an attempt both to get them to buy more of a product and to commit their own effort to "pushing" the product through the nest channel and ultimately to the consumer. Channel-originated Promotions are run by the channel itself to either the next channel in the distribution chain or to final Customers. For consumer packaged goods sold through supermarkets, retailer Promotions are an especially visible form of Promotions. Displays, feature advertising, and price deals (price cuts, free merchandise, and retailer-issued coupons) all affect sales and profits and either augment or detract from manufacturers direct Customer Promotions. In general, the purpose of channel Promotions is to increase sales pf all products to the Customer. Promotion objectives and programs may be gathering offensive, or defensive. Offensive Promotion attempt to gain an advantage through exclusively: being the only company to offer a particular Promotion or level of Promotion support. In most markets, however, competitors quickly match Promotions. On top of that, in some areas, notably consumer packaged goods; the channels have become sufficiently powerful to both demand and schedule Promotions. The result is that companies, including those with household brand names and dominant market shares, are promoting due more to a perceived necessity to match competition and satisfy the channels than to a conviction that Promotions benefit the manufacturer. Many types of consumer products, service and industrial products use sales promotion devices extensively. Short-term price discounts to consumers are very common in industrial markets. In addition, farm equipment and office Products manufacturers, for example, frequently target channel members for promotions which may or may not passed on to the customers.
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PROMOTIOM OBJECTIVES:
FINAL CUSTOMER PROMOTIONS: Final Customer Promotion, at least for existing or mature products, typically takes a short-run view. Even when the focus as long-run, such as to generate trial, the operational objective of most Promotion is to generate immediate response in the form of sales. The possible advertising objective range from generating awareness to increasing product understanding to improving attitude towards purchase. In principle, Promotion can be directed toward any of those goals.
CUSTOMER PROMOTION OBJECTIVES:
Objective Programming I .Long-run(relationship building) A. Awareness enhancement B. Image enhancement II. Short-run (transactional) A. Current Customers 1. Buy More 2. Be more loyal 3. Buy now B. Occasional Customers(deal
Typical
Sweepstakes, contest, tie-ins Sponsorships
Volume packages
discounts/special
value
Coupons, premiums. Frequent buyer prone, Programs Rebates, coupons
brand switchers) Capture next purchase C. Non Customers Coupons, display, rebates Trial sizes sampling
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If awareness is the problem, a company can run a Promotion such as a game or sweepstakes designed to increase awareness of a product rather than to increase immediate sales. Similarly, a company can run a tie-in Promotion that may, in addition to raising current sales, have a residual positive impact on brand image. Such relationship-building motives, however, account for only a small percentage of the Promotion. Once awareness of the product is met then to improve the sales, is it recommended that to go for the promotion objectives that are listed above. By far the most common objective of a consumer Promotion is a short-run goal to generate more transactions in a short period of time. The objective are implemented in two ways, first we need to specify from what level sales should increase. The easiest benchmark is last year or last period; the more difficult measure, but one from which the true success of the program should be gauged, is what sales would be absent the Promotion Second, we must select the target Customer and define desired behavior. Basically, you ca focus on getting current Customers to buy more, capturing occasional but not loyal Customers, or generating sales from current Non Customers. Many Promotions focus on current Customers, attempting to get them to buy more through a -volume discount, to be more loyal, or to accelerate their purchases and buy sooner. Attracting occasional Customers, typically through temporary price cuts such as coupons and rebates, is effective but also expensive. This is not only produces lower margins on the sales to occasional Customers but may also lower margins on sales that would have been made in the absence of the Promotion to either occasional or regular Customers. Hence a major concern ids how to target Promotions o competitor's Customer alone. Promotions to non-Customers are generally used when a product is new to generate trial. In a sense, targeting non Customers implies a long-run relationship-building objective. In addition to their sales-generating role, selectively distributed Promotions provide a legal means of price discrimination. Special coupons may act as price discriminators as much as sales promoters.
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TRADE PROMOTIONS: The objectives of trade Promotions basically fall into three main categories. Objective Typical Programs
Transactional: increase stocking levels
Volume allowances Financing terms Discount/price cuts Slotting allowances
Transactional: increase sales efforts
Advertising Premiums
Display
allowances
Allowances Relationship building
Contests Free goods
Relationship building: The first category focuses on getting the trade to buy or stock the product in greater quantities by offering various financial incentives. The second category tries to increase the level of trade support given to the product by means other than increasing their inventories. A variety of allowances and direct incentives relate to this task. The final set of objectives involves relationship building, a longer-term objective. One example of relationship-building is to give extra product to a channel with no explicit strings attached. An important type of trade Promotion involves participating in trade shows. One major purpose of trade shows is to entice current and potential channel members to carry a product. Trade shows are a great business in their own right. Participants have multiple objectives, including image enhancement, new-product introduction, and competitor monitoring.
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Promotion Budgeting Total Advertising and Promotion Budget: Seven factors have been found to effect the total budget for advertising and sales Promotion for manufactured products .Companies spend more on Promotion and advertising relative to sales when 1. The product is relatively standardized. 2. There are many end users. 3. The product is premium priced. 4. The product has a high contribution margin. 5. The product or service has a small market share.
ADVERTISING AND PROMOTION: Several factors affect this allocation decision. First, the total amount of resources available has a major impact. If the marketing budget is small, extensive media advertising is usually not worthwhile unless the target market is local and can be reached by media such as radio and newspapers, because advertising usually needs a minimum or threshold amount to have any impact. Beneath the threshold value, the money is virtually wasted. In such cases, spending the budget on sales Promotion results in a greater market impact than advertising. Second, Customer factors affect allocation decisions. One relevant aspect of Customer behavior is the degree of brand loyalty. Promotion money spent on a product or service exhibiting high levels of loyally rewards primarily existing Customers. Although this may be what the product manager wants, it is usually not the best way to spend money. If Customer's are not very loyal, the product manager should try to understand if their behavior is endemic to the category; if so, there may be an opportunity to attract brand switchers with Promotions. It is also possible, however that the product manager has created nonloyal Customers through frequent, price-based Promotions, and thus all that happens is a temporary swapping of Customers.
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A second relevant aspect of consumer behavior is the type of decision required of them. If the product is complex and therefore requires a fair amount of information processing, more should be spent on advertising because it is better communications device. Alternatively, most sales promotion amount is spent on product categories in which decision making is routine and involves little processing of information about the product. A third factor affecting allocation decisions is whether advertising and promotion amount high the unique aspects of the product, consumer franchise building (CFB) aspects. CFB activities are those that build brand equity, including advertising, sampling, coupon, and product demonstrations. Non-CFB activities focus on price alone and include trade promotions, short-term price deals, and refunds.
TYPES OF FINAL CUSTOMER PROMOTIONS: Deciding on which Promotion element to employ in many ways parallels the media selection process in advertising: CONSUMER PROMOTIONS: I. A. B. 1. 2. 3. Central location Direct(e.g., mail) Attachment (in-/-on-pack) 4. Media placed (clip-and-send coupons) Product based Additional volume/bonus pack Samples
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II. A. B. 1. 2. 3. 4.
Price based Sale price Coupons
Central location Direct (mail) Attachment (in-/-on-pack) In media (e.g., websites) C. D. E. Refind/rebates Financing Frequent Premiums Place-based Promotions(physical '1;splays; Internet site based) Games (sweepstakes, contests)
III. IV. V.
PRODUCT-BASED PROMOTIONS: One obvious category of Promotions is to give away the product itself. Extra volume packages bare common in consumer products. Even more dramatic are completely free products. Coupons for free goods show up in the mail, on or in packages of the good, or in media vehicles. Computer hardware and software companies often give free copies of their products to select Customers as "beta" test sites to help get any bugs out and stimulate early word of mouth. Sampling has the obvious benefit of stimulating product trial because it gives the shortcomings. First, it is very expensive. Second, it may not target the right potential Customers; people who distribute free samples in supermarkets or on street corners are not very discriminating about to whom they give the product
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PRICED-BASED PROMOTIONS: Another obvious type of Promotion involves price. The use of sale price is understated if we describe them as being "widespread". Unfortunately, most short-term price reductions are not narrowly targeted because all buyers, including extremely brandloyal ones, have access to in-store price reductions. More targeted price reductions that require at least some effort on the part of the consumer involve coupons. Coupons are one of the very few ways to legally implement price discrimination, that is, charge different prices to segments with different sensitivities to price by delivering targeted coupons. The use of attachment coupons allows a more focused price cut, though outright theft and trading of coupons are common As just noted one advantage of coupons is that they can be delivered by mail, at the cash register, or even through the Internet to carefully targeted audiences. In addition, because they normally have to be cut out and physically carried to the point of transactions, coupons require more commitment to purchase the product, and thus may engender more repeat purchases. They are also flexible because they can be designated for larger package sizes, a now flavor extension, and the like. Other, price-based consumer Promotion is also options. Refunds and rebates are common and effective, though the long-run effects may be negative. Frequent user programs such as those offered by supermarkets, sporting goods stores etc, are useful for encouraging brand loyalty and allow consumers to buy products at a discount after they have accumulated a sufficient number of points.
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OTHER CUSTOMER PROMOTIONS: In addition to product - and price-based Promotions, other elements of the marketing mix can be used to meet company objectives. Point-of-purchase displays are common; notice the checkout and end-of-aisle displays at any supermarket. One popular form of place-based Promotion is the exposition at which manufacturers congregate to display and sell their wares. Another inducement to purchase is free service. In addition, various premiums have proven effective. TYPES OF TRADE PROMOTIONS: Trade Promotions are directed not to the final Customer but to the channels through which the goods are sold. Like consumer Promotions, they can be broken into five categories Trade Promotions: I. A. B. II. A. B. III A. B. C. Product based Free goods Consignment/returns policy Price based Buying allowances Financial terms Place based Slotting allowances Display allowances Warehousing/delivery assistance
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IV A. B. C. V A. B.
Advertising and promotion based Co-op advertising Selling aids Co-op selling Sales based Bonuses and incentives Contents and prizes
Product-based Promotions include free goods and generous returns policies. Returns policies allow the channel to return unsold merchandise for a full or partial refund, reducing the risk of carrying the product. Price deals include various volume discounts and allowances, as well as financing terms such as long period of time before payment is due or below-market interest rates. Place-based allowances are especially for consumer packaged goods. Slotting allowances, which are basically payments for placing a product on the shelf, have become increasingly important as power has shifted from manufacturers to retailers. These fees charged to manufactures have had a negative effect on the number of competitors in many product categories and have been particularly hard on small companies, for which the fees can become prohibitive. Display allowances compensate retailers for prominent display of goods. Other Promotion involve reducing inventory and transportation costs by either warehousing the goods for the channel or paying all or part of delivery charges. Providing selling assistance is also common. In addition to selling aids companies often provide cooperative advertising, sharing the channel's advertising expense.
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EVALUATING CUSTOMER PROMOTIONS: The easiest approach to evaluating Customer Promotion is to simply look at incremental results during the period of Promotion. This method provides a useful starting point, but may lead to an overestimate of the benefit of Promotion because it ignores both where the sales come from and the long-term consequences of Promotion. As with evaluating advertising effects, a standard approach to measuring the impact of sales Promotion is tracking. EVALUATING SALES PROMOTION: TRACKING STUDIES
As shown in above picture of simple tracking approach with point A on horizontal axis representing the time when the Promotion say, a price reduction -is given to end consumers. Tracking studies such as these are used frequently because the effects of sales Promotion often show up quickly. Unfortunately, product managers tend to look at the shaded above point a as shown. The simple analysis could be made is the gain could be offset by the crosshatched "dip" at point B, representing the possibility that consumers have increased their inventories at home, thus negating the need to rebuy soon.
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The gain must be evaluated relative to a base amount: the amount of sales that would have been generated had the Promotion not to run. This base line calculation is somewhat difficult because it will change by the time. The analysis does not account for other factors in the marketplace, including actions by both the product in question and the competition. If products have several Promotions running simultaneously, it is difficult to separate the effects of one Promotion from another.
SHORT-RUN EVALUATION: Sales increase from Promotions may be generated by accelerating purchasing by loyal buyers. Many coupon redeemers, May be Customers who would have bought the product anyway and simply used the coupon as "found of money" or, at best, bought the products somewhat sooner than they would have in the absence of a Promotion. Basically, a coupon can have several incremental impacts: 1. Accelerated regular purchasethat is, regular buyers of the brand
simply buy sooner 2. Accelerated captured purchasespurchases that neither would have
bought at the time nor bought the promoted brand but are persuaded to do both by the Promotion. 3. Uncelebrated regular purchasesregular buyers who use the coupon
as a "bonus" price cut. 4. Uncelebrated switch to the regular purchasespurchases of other brands who
promoted brand because of the Promotion.
Obviously, categories 2 and 4 are pluses and category 1 also represents incremental sales, albeit borrowed ones. Category 3 is basically a negative. Category 1 is potentially but not necessarily negative. If subsequent sales are depressed as a result of increased inventory, there is no benefit and a clear cost. Of course, one possible benefit
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of Promotion is that "captured" buyers will remain loyal and repeat purchase the promoted brand on a subsequent purchase occasion. It is possible that Promotion increases category purchase quantity, either with or without depressing future purchase quantity. Interestingly, considerable evidence seems to suggest that increased quantity due to Promotion is neither preceded nor fallowed by decreased quantity purchased. To assess the value of Promotion, then it is necessary to estimate both the source of additional sales and its overall magnitude. Some Promotions have lower redemption rates than others that are freestanding insert coupons versus on-pack or register a price discount, which lessen their negative impact on profit margins but at the same time decreases their impact on quantity. The main point here is that it is possible to estimate the impact of a Promotion through systematic analysis and that the results of such analysis are often quite sobering. In addition to the direct effects of manufacturer Promotions on Customer, the Promotion has an indirect impact on channel (retailer) behavior. Notice that a major factor affecting the profitability of Promotions is whether or not a good is easily stockpiled. Perishable goods and services cannot be stockpiled and hence paper towel Promotions tend to result in stockpiling, and, if Promotion is matched by competitors, actually lead to lower profits. In contrast, Promotions on underused services or perishable goods may produce increasing profits.
LONG-RUN CONCERNS: Promotion also has two important long-run impacts. First is the impact of Promotion on Customer perceptions of the brand. Brand bought on Promotion may be seen as lower in quality and, the extreme, something it make sense to buy only on deal. A recent study suggests when long-run negative impacts are considered, the total positive impact of a Promotion is only one-third its short-run impact.
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COMPETITIVE REACTION: There is also concern about the impact of Promotions on competitors. Most markets are oligopolies, and hence decisions need to take likely competitive reactions into account. Not surprisingly competitors often match Promotions quickly, thus negating many of the possible benefits while increasing costs. A Promotion spiral can ensue with great benefit to Customers and harm to companies profits.
PROMOTION EFFECTS: Scanner data have been used extensively to assess the effects of Promotion on buying behavior. We know consumers use coupons extensively. Further, while some consumers purchase at regular intervals, some accelerate purchases and stockpile goods in response to Promotions. Given the prevalence of scanner data for supermarket and drugstore products, it is not surprising that a large number of models have been developed to use them to asses the impact of marketing variables such as Promotion or assuming primary demand (market size) is constant on share. The models generally assess the value of each brand to an individual Customer as a function of several components: 1. The inherent value of a brand-size combination. This is either treated holistically or further decomposed into product attributes. 2. The non-product marketing mix elements: price, Promotion, the amount
of the Promotion, and advertising. 3. Carryover effects of past purchases. 4. Customer loyalty or inertia Scanner data are not a perfect means for assessing the impact of Promotions. They generally include only household-level data, do not cover purchases at non-scanned stores, and exclude many potential influences on sales. They are, however, a useful and
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unobtrusive means for evaluating both natural and controlled experiments. Scanner data are increasingly being used to compare different Promotions and provide directional guidance to managers. The impact of Promotion to the most is based on analysis of consumers packaged goods and here are some of the analyses made: 1. Temporary retail price reductions substantially increase sales. 2. Higher market share brands are deal elastic 3. The frequency of deals changes the consumer's reference price. 4. The greater the frequency of deals, the lower the height of the deal. 5. Cross-Promotional effects are asymmetric, and promoting higher-quality
brands affects weaker brands disproportionately. 6. Retailers pass through less than 100 percent of trade deals 7. Display and feature advertising have strong effect on item sales. 8. Advertised Promotions can result in increased store traffic. 9. Promotional affect sales in complementary and competitive categories.
TEST MARKET:
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Test markets are as useful for evaluating different sales Promotions as they are for advertising copy or pricing experiments. A product manager can attempt different combinations of free samples, end-of aisle displays, coupons, and special price Promotion over a period of time, using some stores as the Experimental group and others with no promotional activity as the control group.
The above figure shows that of a result of a special display experiment run in a Behavior Scan market. It can be seen that a significant spike in unit sales occurred around the data when all of the special displays were installed. An interesting result is that although the sales in the experimental stores were lower than those in the control stores after the experimental period, there was no large "through," thus implying that the net effect was quite positive.
EVALUATING TRADE PROMOTIONS:
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The results of earlier has shown that many users of consumer Promotion would have bought the product anyway, so they simply pocket the value of the Promotion stock up at the low price. A similar problem exists for trade Promotions, the issue of "gray markets". Gray markets involve authorized dealers or retailers that buy the product from the producer and then resell it to other, unauthorized dealers. This practice is common when a company offers a volume discount and multiple dealers in effect pool their orders to obtain it. Various Internet-enabled consortia have sprung up to take advantage of these discounts. Further, although many trade Promotions involve implied cooperation on the part of the channel, these provisions are hard to monitor and enforce. Put differently. Although the manufacturer's objectives are best served when Promotions are passed through to consumers, channels' profits are often increased by retaining all or a substantial amount of a Promotion allowances as profit. One way to evaluate trade Promotions is as a necessary cost of doing business, an explicit recognition of the growing power of mass merchandisers in consumer packaged goods marketing. Trade Promotion now accounts for more of the Promotion budget than either advertising or consumer Promotions. One reason is a key to increased volume. Trade Promotion consisted of three basic typesoff-invoice discounts, sales drive discounts, and special fall premiumsand their effects were treated separately. The model included an "end-of-deal" variable to account for orders placed during the deal period but not shipped until the next period. The sales drive consisted of a percentage payment to channel when it sold units to the retailer. The special fall premium was direct payment to the Manufacturer/s own sales force. To remove the impact of the direction sales force were headed on their own the model also used a time trend term.
A different approach uses an expert system style modeling method (promoter) based on the results of many past Promotions. This approach begins by developing a baseline
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sales level based on trend and seasonality plus any unusual factors that may have affected sales. Basically, a baseline estimation procedure relies on periods when Promotion is zero. Incremental sales are then computed as the difference between baseline and actual sales. Thus, in contrast to the multiple-equation approach PROMOTOR does not asses the process by which a Promotion works; rather it concentrates on estimating its magnitude. The general findings from PROMOTOR are the following: Trade deals tend to have lower "pass-through"; that is, savings by the retailer are passed along to consumers less than manufacturers hope. Retailers tend to forward buy when they offered Promotions, allowing them to stock up and ultimately making the Promotion unprofitable for the manufacturer. The effectiveness of trade deals varies greatly across sizes of products and markets.
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INTRODUCTION
The term FMCG (fast moving consumer goods), although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use. Conceptually, however, the term refers to relatively fast moving items that are used directly by the consumer. Thus, a significant gap exists between the general use and the conceptual meaning of the term. Fast Moving Consumer Goods (FMCG) satisfies the elemental and day-to-day household needs other than grocery, ranging from packaged foodstuff, dairy products, cooking oil, bread, butter, cereals, beverages like tea & coffee, pharmaceuticals, confectionery, biscuits, glassware, stationary items, watches, toiletries, detergents, shampoos, skin care products, cosmetics, toothpaste, dish washing liquid, shaving cream, razor, batteries, shoe polish, energy drinks, soft drinks, clothing, furniture and household accessories to electronic goods like cell phones, laptops, computers, digital cameras etc. that are usually categorized as Fast Moving Consumer Electronics or FMCE.A major portion of the monthly budget of each household is spent on FMCG products. Further, difficulties crop up when attempts to devise a definition for FMCG. The problem arises because the concept has a retail orientation and distinguishes between consumer products on the basis of how quickly they move at the retailers shelves. The moot question therefore, is what industry turnaround threshold should be for the item to qualify as an FMCG. Should the turnaround happen daily, weekly, or monthly? One of the factors on which the turnaround depends is the purchase cycle. However, the purchase cycle for the same product tend to vary across population segments. Many low-income households are forced to buy certain products more frequently because of lack of liquidity and storage space while relatively high-income households buy the same products more infrequently. Similarly, the purchase cycle also tends to vary because of cultural factors. Most Indians, typically, prefer fresh food articles and therefore to buy relatively small quantities more frequently. This is in sharp contrast with what happens in most western countries, where the practice of
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buying and socking foods for relatively longer period is more prevalent. Thus, should the inventory turnaround threshold be universal, or should it allow for income, cultural and behavioral nuances? Characteristics of FMCG Products: Individual items are of small value. But all FMCG products put together account for a significant part of the consumer's budget. The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required. Many of these products are perishable. The consumer spends little time on the purchase decision. Rarely does he/she look for technical specifications (in contrast to industrial goods). Brand loyalties or recommendations of reliable retailer/dealer drive purchase decisions. Trial of a new product i.e. brand switching is often induced by heavy sales promotion, recommendation of the retailer or neighbors/friends. These products cater to necessities, comforts as well as luxuries. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers. Brand preference and Customer Preferences Brand preference is the degree of familiarity among consumers about the life and availability of the product. It is measured as ratio of niche market that has former knowledge of brand. Brand preference includes both brand recognition as well as brand recall. Brand recognition is the ability of customer to recognize prior knowledge of brand when they are asked questions about that brand or when they are shown that specific brand, While brand recall is the potential of customer to recover a brand from his memory when given the product class/category, needs satisfied by that category or buying scenario as a signal. In other words, it refers that consumers should correctly recover brand from the memory when given a clue or he can recall the specific brand when the product category is mentioned. It is generally easier to recognize a brand rather than recall it from the memory. Consumer preferences are defined as the
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subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer. Note that preferences are independent of income and prices. Ability to purchase goods does not determine a consumers likes or dislikes. This is used primarily to mean an option that has the greatest anticipated value among a number of options. Preference and acceptance can in certain circumstances mean the same thing but it is useful to keep the distinction in mind with preference tending to indicate choices among neutral or more valued options with acceptance indicating a willingness to tolerate the status quo or some less Desirable option.
GROWTH PROSPECTS OF FMCG: With the presence of 12.2% of the world population in the villages of India, the Indian FMCG market is something no one can overlook. The increased focus on farm sector will boost urban incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the urban income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot
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beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas
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HINDUSTAN UNILEVER LIMITED
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The companys Turnover is Rs. 20, 239 cores (for the 15 month period January 1, 2008 to March 31, 2009). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of 40.5 billion in 2008. Unilever has about 52% shareholding in HUL. Hindustan Unilever was recently rated among the top four companies globally in the list of Global Top Companies for Leaders by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to add vitality to life". The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.
Heritage: HULs heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders. HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel,
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Fair & Lovely, Sun silk, Clinic, Close-up, Peps dent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in over 35 factories, several of them in backward areas of the country. The operations involve over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million. HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (now Hindustan Unilever Research Centre) was set up in 1958.
Doing Well by Doing Good: HUL believes that an organizations worth is also in the service it renders to the community. HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIVpositive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the relief and rehabilitation of the people affected by the Tsunami disaster, in India. HULs Project Shakti is a rural initiative that targets small villages populated by less than 5000 individuals. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also provides health and hygiene education through the Shakti Vani programme. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly reaching to over three million rural consumers. HUL also runs a rural health program me, Lifebuoy Swasthya Chetana. It has already touched 120 million people in approximately 50, 676 villages across India. If Hindustan Unilever straddles the Indian
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corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life. HUL AT A GLANCE: Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands touch the lives of two out of three Indians. They endow the company with turnover of Rs.20, 239 cores (for the 15 month period January 1, 2008 to March 31, 2009). The company meets every day needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52% of the equity.
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NESTL
Nestl India is a subsidiary of Nestle S.A. of Switzerland. With seven factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. HISTORY: Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverages sector. Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations. Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export)
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Limited, importing and selling finished products in the Indian market. After Indias independence in 1947, the economic policies of the Indian Government emphasized the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls Agricultural Services to educate advice and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centers that would not only ensure prompt collection and pay fair prices, but also instill amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well.
OPERATIONS: Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create
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value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL JeeraRaita. Nestl India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates.
PRESENCE IN INDIA: Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestl commissioned two factories in Goa at Ponda and Bicholim respectively. Nestl India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand
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ITC
ITC was incorporated on August 24, 1910 under the name of Imperial Tobacco Company of India Limited. As the companys ownership progressively Indianised, the name of the company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C limited in 1974. The full stops in the companys name were removed on September18, 2001. The company concentrated on Leaf Tobacco and Cigarettes business for the first six decades. In the seventies, due to the corporate transformation, momentous changes have taken place in ITC. The corporate office is located in Kolkata and the PSPD units are located in four places which are, the Bhadrachalam Unit, the Tribeni unit, Bollaram and the Kovai unit. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of Greeting cards. A line of premium range of notebooks under the brand PAPERKRAFT was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under the brand Classmate in 2003. CLASSMATE over the years has grown to become Indias largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007 2009 saw the launch of Children books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched Indias first environment friendly premium business paper under the Paper Kraft brand. Paper Kraft offers a diverse portfolio in the premium executive stationery and office consumable segment. Paper Kraft entered new categories in the office consumable segment with the launch of text liners, permanent ink markers and white board markers in 2009.
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PROCTOR & GAMBLE

Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment. Procter& Gamble's relationship with India started in 1951 when Vicks Product Inc. India, a branch of Vicks Product Inc. USA entered Indian market. In 1964, a public limited company, Richardson Hindustan Limited (RHL) was formed which obtained an Industrial License to undertake manufacture of Menthol and de mentholated peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler. In May 1967, RHL introduced Clearasil, then America's number one pimple cream in Indian market. In 1979, RHL launches Vicks Action 500 and in 1984 it set up an Ayurvedic Research Laboratory to address the common ailments of the people such as cough and cold. In October 1985, RHL became an affiliate of The Procter & Gamble Company, USA and its name was changed to Procter & Gamble India. In 1989, Procter & Gamble India launched Whisper - the breakthrough technology sanitary napkin. In 1991, P&G India launched Ariel detergent. In 1992, The Procter & Gamble Company, US increased its stake in Procter & Gamble India to 51% and then to 65%. In 1993, Procter & Gamble India divested the Detergents business to Procter & Gamble Home Products and started marketing Old Spice Brand of products. In 1999 Procter & Gamble India Limited changed the name of the Company to Procter & Gamble Hygiene and Health Care Limited.
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P&G Home Products Limited was incorporated as 100% subsidiary of The Procter & Gamble Company, USA in 1993 and it launched launches Ariel Super Soaker. In the same year Procter & Gamble India divested the Detergents business to Procter & Gamble Home Products. In 1995, Procter & Gamble Home Products entered the Hair care Category with the launch of Pantene Pro-V shampoo. In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter & Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter & Gamble Home Products Limited launched Pampers - world's number one selling diaper brand
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VI.
DATA INTERPRETATION AND ANALYSIS Data is the very important aspect of a research report because the data is the only thing from which the analysis and findings could be made; this is the reason why the data is being collected for the purpose of the research study. The study can be made easier through the collection of data and while collecting it the data can be reformed and furnished like this so that meaningful information can be withdrawn from it. The question are framed as according to the respondents, the information gathered from the questionnaire is being used in the forms of pictorial representation and in tabular form thus the data representation is done in the form of pie chart, and graphs . And it is the survey done in Bangalore city area only. 1. Age group of respondents. AGE GROUP OF RESPONDENTS 20-25 26-30 31-35 36-40 41-45 NO. OF RESPONDENTS 50 42 22 29 7
Series1 41-45 7 5% Series1 36-40 29 19% Series1 31-35 22 15%
Series1 20-25 50 33%
20-25 26-30 31-35 36-40 41-45
Series1 26-30 42 28%
Interpretation: The survey conducted shows that most of the respondents were of the age group of 20-25 years and the least respondents were of 41-45 years.
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2. Respondents of different gender. RESPONDENTS MALE FEMALE NO. OF RESPONDENTS 86 64
Showing the percentage of male and female respondents
Series1 FEMALE 64 43% Series1 MALE 86 57%
MALE FEMALE
Interpretation: This chart shows that mostly the male are more interested in branded products than the female category.
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3. Which are the favorite brands? FAVOURITE BRANDS ITC P&G ITC NESTLE OTHERS NO. OF RESPONDENTS 70 45 20 10 5
3% 7%
13% HUL 47% P&G ITC Nestle Others
30%
Interpretation: In this chart it is clear that the most liked brand is HUL followed by P&G which are both FMCG companies.
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4. Why the brands are preferred by the respondents? PREFERENCE CRITERIA QUALITY COMFORTABLE STYLISH RELIABLE FEATURES NO. OF RESPONDENTS 62 42 23 16 7
Chart Title NO. 4 Showing the liking criteria of brands.

Series1 RELIABLE 16 11% Series1 STYLISH 23 15% Series1 FEATURES 7 5%
QUALITY COMFORTABLE Series1 QUALITY 62 41% STYLISH RELIABLE FEATURES
Series1 COMFORTABLE 42 28%
Interpretation: The brands like HUL and ITC and many more are liked by the respondents because of the good quality which shows a percentage of 41 and comfortable which has a percentage of 28.The brands are even liked because they are stylish,reliable and because of its features.
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5. from where you get the information about these brands? INFORMATION SOURCE NEWSPAPERS TELEVISION RADIO INTERNET HOARDINGS WORD OF MOUTH NO. OF RESPONDENTS 32 66 6 10 11 25
Series1 HOARDINGS 11 7% Series1 INTERNET 10 7% Series1 RADIO 6 4%
Series1 WORD OF MOUTH 25 17%
Series1 NEWSPAPERS 32 21%
NEWSPAPERS TELEVISION RADIO INTERNET HOARDINGS WORD OF MOUTH
Series1 TELEVISION 66 44%
Showing the information source of brands

Interpretation: The respondents said that they got the information of vthese brands from different media like television,newspaper,radio,word of mouth,etc..According to the survey, television has given information to 44% respondents,newspaper to 215, through word of mouth to 17% respondents,from radio to 4%,internet 7%,and last hoardings to 7% of respondents.This shows that atelevision creates more impact on customers.
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6. If you are searching for information of a brand which media will you look for?
MEDIA PREFERENCE PRINT MEDIA ELECTRONIC MEDIA OTHER MEDIA WORD OF MOUTH
NO. OF RESPONDENTS 25 79 17 29
WORD OF MOUTH 29 19%
Showing the media liked by the respondents for Series1 information of a brand
Series1 PRINT MEDIA 25 17%
PRINT MEDIA ELECTRONIC MEDIA OTHER MEDIA WORD OF MOUTH
Series1 OTHER MEDIA 17 11%
Series1 ELECTRONIC MEDIA 79 53%
Interpretation: In this chart the respondents have said about their preference of media to get information about their brands.53% have said that they prefer electronic media like television,internet.17% have voted for print media like newspapers,magazines 19% said that they go with wordof mouth from friends,family,relatives,etc. and 11% choose other media.
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7. Do you rely on sales promotion? DO YOU RELY ON SALES PROMOTION YES NO SOMETIMES RARELY NO. OF RESPONDENTS 58 24 56 12
Series1 RARELY 12 8% Series1 YES 58 39%
YES NO SOMETIMES RARELY
Series1 SOMETIMES 56 37%
Series1 NO 24 16%
Interpretation: The respondents were asked whether they believe on sales promotions.39% said that they rely on sales promotions and utilize the information given,16% said that they do not believe,37% said that they sometmes believe if they find the information rational,and 8% rarely believe.
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8. Do you change your perception of a product by just seeing the sales promotion? CHANGE OF PERCEPTION DUE TO SALES PROMOTION YES NO SOMETIMES RARELY NO. OF RESPONDENTS 21 52 59 18
Series1 RARELY 18 12%
Series1 YES 21 14% YES NO
Series1 NO 52 35%
SOMETIMES RARELY
Interpretation: In this chart the respondents were asked if they change they thinking about a product after seeing yhe sales promotion.14% respondents said that they change their perception of a product after seeing thesales promotion,35% said that they do not change,39% said that
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sometimes they change and 12% said that it is rarely that they change their perception after seeing an sales promotion 9. Do you think sales promotion is necessary for your decision making? NECESSITY OF SALES PROMOTION IN DECISION MAKING ALWAYS NECESSARY SOMETIMES NECESSARY NOT NECESSARY Series1 NOT NECESSARY 26 17% NO. OF RESPONDENTS 36 88 26 Series1 ALWAYS NECESSARY 36 24%
Series1 SOMETIMES NECESSARY 88 59%
ALWAYS NECESSARY
SOMETIMES NECESSARY NOT NECESSARY
Interpretation In the survey the respondents were asked how much they feel sales promotion is necessary in their decision making.24% said that it is always necessary in decision making,59% said that sales promotion sometimes plays a necessary part when they take a decision,and 17% said that sales promotion not necessary in decision making .
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10. What do you look for in a sales promotion? WHAT YOU LOOK FOR IN AN SALES PROMOTION PRICE BENEFITS BRAND ENDORSERS OFFERS QUALITY NO. OF RESPONDENTS 59 32 20 18 21
Series1 QUALITY 21 14% Series1 OFFERS 18 12% Series1 BRAND ENDORSERS 20 13% Series1 PRICE 59 40%
PRICE
BENEFITS Series1 BENEFITS 32 21% BRAND ENDORSERS OFFERS
Interpretation: In the survey the respondents were asked what are the apspect that they see in an ad..40% said that thay see the price,21% said that they see that benefits shown in tha ad.,13% see the brand endorsers,12% see the offers given and 14% see the quality tpof the product shown in the ad..This shows that in larger amount customers see the price aspect when they see an ad ,
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11. Do you purchase a product just because your favorite celebrity is endorsing it? DO IT YOU PURCHASE A PRODUCT BECAUSE YOUR FAVOURITE CELEBRITY IS ENDORSING YES NO SOMETIMES NO. OF RESPONDENTS 72 50 28
Series1 SOMETIMES 28 19% Series1 YES 72 48% YES NO SOMETIMES
Series1 NO 50 33%
Interpretation: In this chart the question asked to the respondents was if they purchase a product only because their favourite celebrity is endorsing a particular product. For this 48% said that they purchase only because their celebruty is endirsing it,33% said that they do not purchase because of the celebrity and 19 % said that sometimes they purchase it since their favourite celebrity is endorsing it.This is clear that celebrity endirsement plays a great part in the brand preference.
12. If you hear the name of a brand through sales promotion what do you recall?
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WHAT YOU RECALL FROM SALES PROMOTION MUSIC TAG LINE ENDORSERS PRODUCT BENEFITS
NO. OF RESPONDENTS 56 27 21 26 20
Series1 BENEFITS 20 Series1 13% PRODUCT 26 17%
Series1 MUSIC 56 38% Series1 TAG LINE 27 18%
MUSIC TAG LINE ENDORSERS
PRODUCT
BENEFITS
Series1 ENDORSERS 21 14%
Interpretation: The respondents were asked what they can recall after they see or hear an ad..38% of the respondents said that they can recall the music which was played in the ad.,18% can remember the tag line,14% they remember the brand endorser, 17% can recall only the product and 13 % they recall the benefits that were shown in the ad..This makes it clearly evident that music in an ad. makes it possible for consumers to recall the particular brand.
13. What are the things that should be highlighted in sales promotion?
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WHAT SHOULD BE HIGHLIGHTED IN AN SALES PROMOTION BENEFITS TAG LINE BRAND NAME COMPANY NAME ENDORSERS PRODUCT FEATURES Series1 PRODUCT FEATURES Series1 14 ENDORSERS 10% 12 8%
NO. OF RESPONDENTS 35 45 26 18 12 14
Series1 BENEFITS 35 23%
BENEFITS TAG LINE BRAND NAME COMPANY NAME ENDORSERS PRODUCT FEATURES Series1 TAG LINE 45 30%
Series1 COMPANY NAME 18 12%

Series1 BRAND NAME 26 17% Interpretation:
Through this chart it is shown what are the things that should be given more priorty in an ad..23% of the respondents said that the benefits of a product should be highlighted,30% said that the tag line should be highlighted so that the customers can recall and their brand preference will increase,17% said that tha brand name should be highlighted,12% said that company name should be given more priority,8% said that endorsers should be brought in the lime light,and rest 10% said that the features of the product should be highlighted.From this survey we can say that ,tag line of a brand should be brought in lime light so that brand preference of that particular prouct will increase.
14. If a product is misinterpreted by your friend would you believe him or go on with your own view?
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WHAT YOU DO IF A PRODUCT IS MIS INTERPRETED BELIEVE MY FRIEND GO WITH MY VIEW REFER ADVERISEMENT REFER INTERNET
Series1 Series1 REFER INTERNET BELIEVE MY 19 FRIEND Series1 13% 39 REFER 26% ADVERISEMENT 29 19% Series1 GO WITH MY VIEW 63 42% Interpretation:
BELIEVE MY FRIEND GO WITH MY VIEW REFER ADVERISEMENT REFER INTERNET
The respondents were asked if their friend mis interprets a product what they will do.26% said that they will believe their friend and go with the product,42% said that they will analyse and go with their own view,19% said that they will refert sales promotion and rest 13% will refer internet to get the correct information.This shows that customers are very conscious about a product and they will evaluate themselves and buy a product.
15. Do you prefer going to any store just by seeing the offers on hoardings and banners?
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DO YOU GO TO STORES BY SEEING HOARDINGS AND BANNERS YES NO SOMETIMES RARELY
YES Series1 YES 75 50% NO SOMETIMES RARELY
Series1 NO 22 15%
Interpretation: The respondents were asked if the go to stores by seeing the hoardings and banners.50% of the respondents said that the see the banners and hoardings and go to shop,15% said that they do not shop by seeing the banners and hoardings,255 said sometimes they do,and 105 said that it rarely happens that they see and thaen go to shop.Through this we come to know that banners and hoardings showing that product with its other facets creates brand preference and also induces brand preference.
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16. After you experience any product do you convey the message to others (positive\negative)? DO YOU CONVEY MESSAGE AFTER YOU EXPERIENCE A PRODUCT YES NO SOMETIMES RARELY NO. OF RESPONDENTS 79 26 33 12
if word of mouth is conveyed after a product is being experienced.

Series1 RARELY 12 Series1 8% SOMETIMES 33 22% Series1 NO 26 17%
YES Series1 YES 79 53%
NO
SOMETIMES RARELY
Interpretation: The respondents were asked if they convey word of mouth after they experience a product whether it be positive or negative.53% of the respondents said that they convey word of mouth to their friends and family after they use a product,17% said that they do not do so,22% said that sometimes they do it if the product has some problem and 8% said that they rarely s[read word of mouth to anyone.
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17. What is your response to repeated sales promotion in Tv\radio? WHAT IS YOUR RESPONSE TO REPEATED SALES PROMOTION YES NO GET IRRITATED CHANGE THE CHANNEL NO. OF RESPONDENTS 68 27 36 19
Showing the response to repeated advertisement in media.

Series1 CHANGE THE CHANNEL 19 13% YES Series1 GET IRRITATED 36 24%
NO Series1 YES 68 45%
GET IRRITATED
Series1 NO 27 18% Interpretation:
CHANGE THE CHANNEL
In this question the respondents were asked to give a feed back about repeated ads. which are shown in different media especially electronic media.45% of the respondents said that they do not have any problem ,18% said that they do not like that every moment ads are shown,24% said that they get irritated and rest 13% said that they change the channel when repeated ads of the same product comes.
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18. How important is brand ambassador for sales promotion? IMPORTANCE OF BRAND AMBASSADOR IN SALES PROMOTION VERY IMPORTANT SOMETIMES IMPORTANT NOT IMPORTANT NO. OF RESPONDENTS 79 38 30
Series1 NOT IMPORTANT 30 20% Series1 VERY IMPORTANT 79 54%
Series1 SOMETIMES IMPORTANT 38 26%
VERY IMPORTANT SOMETIMES IMPORTANT NOT IMPORTANT
Interpretation: In this survey the respondents were asked how much they feel is music important in an ad..54% of the respondents said that music plays an important role in advertisemnets,26% said that sometimes its important and 20% said that music is not important in ads..This survey proves that music in an ad boosts the quality of an ad. and also it creates a positive impact on brand prference.
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19. Do you refer Google search before making purchasing decision? DO YOU REFER GOOGLE SEARCH BEFORE PURCHASING YES NO ALWAYS RARELY NO. OF RESPONDENTS 82 25 27 16
YES Series1, ALWAYS, 27, 18% Series1, NO, 25, 17% NO ALWAYS Series1, YES, 82, 54% RARELY
Interpretation: In the survey the respondents were asked do they refer Google search before purchasing a product.54% said that they refer Google search to find about the product before purchasing it. This also brings in light that now a days people are technologically aware and do search before they buy.17% said that they do not go for Google search,18% said that always whatever be the product they refer internet before they purchase, and 11% of the respondents rarely do that if the product is of very importance.
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20. What are the aspects you look for in internet for information on your preferred brands? ASPECTS YOU LOOK FOR IN INTERNET PRODUCT FEATURES DEALER NETWORK PRICE DELIVERY NO. OF RESPONDENTS 75 29 32 14
Series1 DELIVERY 14 10%
Series1 PRICE 32 21%
Series1 DEALER NETWORK 29 19%
Series1 PRODUCT FEATURES 75 50% PRODUCT FEATURES DEALER NETWORK PRICE DELIVERY
Interpretation: The respondents who refer internet werev asked what aspect thay look for in ainternet about a brand or a product.50% of the respondents said that the refer internet to know about the product features,19% said they look for dealer network
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21. Does the internet sales promotion in the website create brand preference? DOES INTERNET SALES PROMOTION CHANGE BRAND PREFERENCE YES NO SOMETIMES RARELY NO. OF RESPONDENTS 78 22 35 15
YES Series1 YES 78 52% NO SOMETIMES RARELY
Series1 NO 22 15%
Interpretation: In this survey 52% of the respondents said that internet creates brand preference,15% said that it does not change brand preference,23% said that it sometimes creates brand preference,10% said that rarely it does so.This shows that internet really creates brand preference.
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22. Do you think internet is the most reliable source of information? IS INTERNET A RELIABLE SOURCE YES NO SOMETIMES NO. OF RESPONDENTS 82 41 27
Series1 NO 41 27%
Series1 YES 82 55%
YES
NO SOMETIMES
Interpretation: 55% said that internet is a very reliable source.this means that customers believe in internet sales promotion which will help in creating good brand preference.
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23. Have you ever online shopping? HAVE YOU DONE ON LINE SHOPPING YES NO SOMETIMES RARELY NO. OF RESPONDENTS 77 35 24 14
YES NO SOMETIMES Series1 YES 77 52% RARELY
Series1 NO 35 23%
Interpretation: 52% have said that they have done on line shopping.This means that customers rely on internet information about the products and also they do on line shopping.
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24. Did you visit companys website before purchasing? DO YOU VISIT COMPANYS WEBSITE BEFORE PURCHASING YES NO NO. OF RESPONDENTS 61 89
YES Series1 YES 61 41% NO
Series1 NO 89 59%
Interpretation: The respondents were asked if they visit companys website before they purchase.41% said that they visit companys website before they purchase and 59% said that they do not visit. This shows that though they do not visit companys website they visit other search engines to know about the product.
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VII.
FINDINGS The most preferred brand is HUL with 70 respondents out of 150 respondents. 62 respondents prefer their brands because of its quality. 66 of the respondents acquire information about their brands from television. 79 respondents said that they would prefer electronic media than any other media to get information about a brand. 58 respondents said that they rely on sales promotion which shows that sales promotion is important. 59 respondents said that sometimes they change their perception of a brand by seeing an sales promotion. 55 respondents have said that product features influence their decision making process.
59 respondents out of 150 said that they look for the price of a product in an sales promotion.
72 respondents said that they purchase a product because their favorite celebrity is endorsing it. 50 respondents said that value for money shown in an ad makes them change their brand loyalty. When it was asked what they recall after seeing or hearing an ad 56 respondents said music. 45 respondents said that the tag line should be highlighted in an sales promotion. 75 respondents have said that they go to the stores by seeing the hoardings and banners. 79 respondents said that they spread word of mouth after experiencing a product. 79 respondents said that music is very important in an sales promotion. 82 respondents said that they refer Google search before purchasing a product.
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78 respondents said that internet sales promotion really creates brand preference about a product. 82 respondents said that internet is a reliable source for collecting information about a brand. 77 respondents said that they have done on line shopping. 89 respondents said that they do not refer companys website before purchasing.
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VIII.
CONCLUSION According to this study, it has found out that people notice sales promotions and the awareness level of the brand is good only because of sales promotions. Based on this study I would say television sales promotions have more reach to the people. Customers prefer television in comparison to other media since they get both the audio and visual effects .This also proves that customers rely on sales promotions shown in media Customers of the age group of 20-25 are more interested in sales promotions and brands. The customers like branded products because of the quality it possesses.. For an sales promotion to be effective the price, the music and the tag line should be highlighted. These three aspects create a great impact in brand preference. Hoardings and banners also create brand preference of a product and are important to increase brand preference. The customers also spread word of mouth after they use a product. This survey also makes it clear that customers (especially of the younger generation) refer internet before they purchase and they search for the product features shown in internet sales promotions.
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IX.
Suggestions
Companies should research continuously for quality improvement. Develop more effective advertising campaigns
Advertising messages should both be persuasive and reminder-oriented. . Comparative advertising is useful in this regard. Television combines motion, sound, and special visual effects for which it is the most preferred media for sales promotions. To employ integrated advertising of their product. More budgets could be devoted to TV adverts in view of the consumers.
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X.
Appendix
Name: Contact No.: Address: Gender: Age :
1. o o o o o
Which are your favorite brands HUL P&G ITC Nestle Others
2. o o o o o o
Why do you prefer these brands Preference Criteria Quality Comfortable Stylish Reliable Features
3. From where did you get the information about these brands o Newspapers o Television o Radio o Internet o Hoardings o Word of Mouth
4. If you are searching for information of a brand which media will you look to o Print media o Electronic media o Other media o Word of mouth 5. Do you rely on ?
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o Yes o No o Sometimes o Rarely
6. Do you change your perception of a product by just seeing the ? o Yes o No o Sometimes o Rarely
7. Do you think is necessary for your decision making? o o o Always necessary Sometimes necessary Not necessary
8. What do you look for in sales promotion? o o o o o Price of the product Benefits of the product Brand endorsers Offers Quality of the product 9. Do you purchase a product just because your favorite celebrity is endorsing it? o Yes o No o Sometimes 10. If you hear the name of a brand through sales promotion what do you recall? o o o o o The music The tag line The endorsers The product The benefits
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11. What are the things according to you should be highlighted in an sales promotion? o o o o o o The benefits The tag line The brand name The company name The endorsers The product features
12. If a product is misinterpreted by your friend would you believe him or go on with your view? o Believe my friend o Go with my view o Refer sales promotion o Refer internet 13. Do you prefer going to any store just by seeing the offers on hoardings and banners? o o o o Yes No Sometimes Rarely
14. After you experience any product do you convey the message to others (positive/negative opinion)? o o o o Yes No Sometimes Rarely 15. What is your response to sales promotion? o o o o Yes No Get irritated Change the channel 16. How important is brand ambassador in an sales promotion? o Very important o Sometimes important o Not important
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17. Do you refer Google search before making purchasing decision? o o o o Yes No Always Rarely 18. What are the aspects you look for in internet for information on your preferred brands? o o o o Product features Dealer network Price Delivery 19. Does the Internet sales promotion in the website create brand preference? o o o o Yes No Sometimes Rarely 20. Do you think internet is the most reliable source of information? o Yes o No o Sometimes 21. Have you ever done online shopping? o o o o Yes No Sometimes Rarely 22. Did you visit companys website before purchasing? o Yes o No
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XI.
References
1. www.krepublishers.com/...../ 2. www.indiamba.com/Faculty_Column/FC706/fc706 3. www.csulb.edu/colleges/cba/honors 4. www.hul.co.in 5. http://www.itcportal.com/ 6. http://www.nestle.in/ 7. http://www.pg.com/en_IN/ 8. 9.
http://www.google.co.in/
The journal of consumer research 17(2), 141-148.
10.Laurent, G., Kapferer, J. N. & Roussel, F. (1987) Philip kotler, Koshy , Jha Marketing management. 11.William G .Zikmund: Business Research Methods
12. http://www.coolavenues.com/know/mktg/amritanshu_2.php3
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INTRODUCTION

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CUSTOMER PROMOTION OBJECTIVES:

Sweepstakes, contest, tie-ins Sponsorships

Coupons, premiums. Frequent buyer prone, Programs Rebates, coupons

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Transactional: increase stocking levels

Volume allowances Financing terms Discount/price cuts Slotting allowances

Transactional: increase sales efforts

Allowances Relationship building

Contests Free goods

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Price based Sale price Coupons

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promoted brand because of the Promotion.

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EVALUATING TRADE PROMOTIONS:

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HINDUSTAN UNILEVER LIMITED

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PROCTOR & GAMBLE

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Series1 41-45 7 5% Series1 36-40 29 19% Series1 31-35 22 15%

Series1 20-25 50 33%

20-25 26-30 31-35 36-40 41-45

Series1 26-30 42 28%

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2. Respondents of different gender. RESPONDENTS MALE FEMALE NO. OF RESPONDENTS 86 64

Showing the percentage of male and female respondents

Series1 FEMALE 64 43% Series1 MALE 86 57%

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13% HUL 47% P&G ITC Nestle Others

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