Professional Documents
Culture Documents
analysis
Submitted by:
Puneet Kaur
2 Sales promotion
• Meaning to sales promotion
• Objectives
• Tools for sales promotion
3 Hypercity (There’s more to Discover)
• First Hypercity stores in Amritsar
• Organization Hierarchy
• Meet our Team
• Display Structure in Hypercity
• Promotional strategy
4 Effect of promotions on sales
• Net effect of promos on sales
• Sampling effect on sales
• Average weekly sales
• Net total sales of three periods .
PREFACE
This report documents the work done during the summer training
at Hypercity Amritsar regarding the effect of promotion on sales
.
The report first shall give an overview of the tasks completed
during the period of training. Then the results obtained shall be
discussed and analyzed.
I have tried my best to keep report simple yet technically correct.
I have tried to put my best effort to complete this task on the
basis of my skill that I have learnt in the last one year. I hope I
succeed in my attempt.
I have put my maximum effort to get the accurate statistical data.
However I would appreciate if any mistakes are brought forward
by my readers.
Puneet
ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave
me the possibility to complete this project titled “Promo efficacy
in retail outlets – detailed analyses”
The project would not have been complete without the guidance
of Mr. Jagpal Sidhu, who was there to provide me the constant
support and co-operation through every phase of the project. I
would also like to thank members of Buying and
Merchandising department Ms Mamta Gandhi, Mr. Umesh
Guleria, Mr. Narinder Singh , Mr. Ravinderpal Singh and the rest
of the members of Hypercity for their valuable inputs in making
this project. I am grateful to my sister Jasmine for her kind help. I
am thankful for her assistance and useful insights.
Finally, this project would not have been possible without the
confidence, endurance and support of my family. My family has
always been a source of inspiration and encouragement
Introduction to Retail
Meaning
Retailing consists of the sale of goods or merchandise from a fixed location, such
as a department store, boutique or kiosk, or by mail, in small or individual lots for
direct consumption by the purchaser. Retailing may include subordinated services,
such as delivery. Purchasers may be individuals or businesses. In commerce, a
"retailer" buys goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then sells smaller quantities
to the end-user. Retail establishments are often called shops or stores. Retailers are
at the end of the supply chain. Manufacturing marketers see the process of retailing
as a necessary part of their overall distribution strategy. The term "retailer" is also
applied where a service provider services the needs of a large number of
individuals, such as a public utility, like electric power.
Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational
activity. Recreational shopping often involves window shopping (just looking, not
buying) and browsing and does not always result in a purchase
Etymology
Retail comes from the French word retailer, which refers to "cutting off, clip and
divide" . It first was recorded as a noun with the meaning of a "sale in small
quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred,
paring". Like the French, the word retail in both Dutch and German also refers to
the sale of small quantities of items
In some parts of the world, the retail business is still dominated by small family-
run stores, but this market is increasingly being taken over by large retail chains.
• Food products
• Soft goods - clothing, apparel, and other fabrics.
• Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting
goods, etc.
• General store - a store which sells most goods needed, typically in a rural
area;
• Convenience store - a small store often with extended hours, stocking
everyday or roadside items;
• Big-box stores - encompass larger department, discount, general
merchandise, and warehouse stores.
The India Retail Industry is the largest among all the industries, accounting for over
10 per cent of the country’s GDP and around 8 per cent of the employment. The
Retail Industry in India has come forth as one of the most dynamic and fast paced
industries with several players entering the market. But all of them have not yet tasted
success because of the heavy initial investments that are required to break even with
other companies and compete with them. The India Retail Industry is gradually
inching its way towards becoming the next boom industry.
The total concept and idea of shopping has undergone an attention drawing change in
terms of format and consumer buying behavior, ushering in a revolution in shopping
in India. Modern retailing has entered into the Retail market in India as is observed in
the form of bustling shopping centers, multi-storied malls and the huge complexes
that offer shopping, entertainment and food all under one roof.
A large young working population with medium age of 24 years, nuclear families in
urban areas, along with increasing working women population and emerging
opportunities in the services sector are going to be the key factors in the growth of the
organized Retail sector in India. The growth pattern in organized retailing and in the
consumption made by the Indian population will follow a rising graph helping the
newer businessmen to enter the India Retail Industry.
In India the vast middle class and its almost untapped retail industry are the key
attractive forces for global retail giants wanting to enter into newer markets, which in
turn will help the India Retail Industry to grow faster. Indian retail is expected to grow
25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by
2016. The Food Retail Industry in India dominates the shopping basket. The Mobile
phone Retail Industry in India is already a US$ 16.7 billion business, growing at over
20 per cent per year. The future of the India Retail Industry looks promising with the
growing of the market, with the government policies becoming more favorable and
the emerging technologies facilitating operations.
Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves
adding a markup amount (or percentage) to the retailer's cost. Another common
technique is suggested retail pricing. This simply involves charging the amount
suggested by the manufacturer and usually printed on the product by the
manufacturer.
In Western countries, retail prices are often called psychological prices or odd
prices. Often prices are fixed and displayed on signs or labels. Alternatively, when
prices are not clearly displayed, there can be price discrimination, where the sale
price is dependent upon who the customer is. For example, a customer may have to
pay more if the seller determines that he or she is willing and/or able to. Another
example would be the practice of discounting for youths or students.
Transfer mechanism
There are several ways in which consumers can receive goods from a retailer:
• Counter service, where goods are out of reach of buyers and must be
obtained from the seller. This type of retail is common for small expensive
items (e.g. jewelry) and controlled items like medicine and liquor. It was
common before the 1900s in the United States and is more common in
certain countries.
• Delivery (commerce), where goods are shipped directly to consumer's
homes or workplaces. Mail order from a printed catalog was invented in
1744 and was common in the late 1800s and early 1900s. Ordering by
telephone is now common, either from a catalog, newspaper, television
advertisement or a local restaurant menu, for immediate service (especially
for pizza delivery). Direct marketing, including telemarketing and television
shopping channels, are also used to generate telephone orders. Online
shopping started gaining significant market share in developed countries in
the 2000s.
• Door-to-door sales, where the salesperson sometimes travels with the goods
for sale.
• Self-service, where goods may be handled and examined prior to purchase,
has become more common since the 1920s.
Sales Promotion in Indian Retail Market
(iv) Price-off offer: Under this offer, products are sold at a price
lower than the original price. “Rs. 2 off on purchase of a lifebouy
soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000
off on cooler’ etc. are some of the common schemes. This type of
scheme is designed to boost up sales in off-season and
sometimes while introducing a new product in the market.
Our vision
To be an integral part of customers lives , by
offering them a high quality shopping experience
through great products at ever better prices.
What we are?
Hypermarket model -120000sq feet and above.
Store locations
1001 Malad -120000sq ft
1002 Vashi -110000 sq feet
1005 Jaipur -55000 sq feet
Facilities
1. ATM Facility for convenient cash withdrawal (HSBC)
2. Consumer finance (Bajaj Finance)
3. Disabled access to store and with wheelchair facilities
4. Hassle free shopping
5. Fasters checkout as of 30 checkout centers
6. Vodafone bill pay
7. Free gift wrapping
Organizational Hierarchy
CEO
VICE
BUSINESS PRESIDENT
BUSINESS BUSINESS
CHIEF OF HEAD BUYING AND
OPERATIONS
HEAD- LEGAL HEAD HEAD-
MARKETING
HR HTT
/ VM MERCHADISI
NG
BUSINES
HEAD – HEAD-
BUSINESS
INSTITUTION BUSINES GENERAL
HEAD
AL HEAD FOOD MERCHANDIS
OPERATIONS
BUSINESS E
AND FASHION
CEO- Mr. John Wilcox
Vice President - Dharmendar Jain
Head Buying and Merchandising – Ashutosh Chakerdo
Head of General Merchandising – Rajiv Nair
Head of Operations – Siddarathan M
Business Head Technology – Veeneth Purshothaman
DISPLAY STRUCTURE IN HYPERCITY
Display plays an important role in promoting sales . Hypercity has
its own norms in respect to its display structure in all its stores.
Products are usually displayed on :
Aisle :
An aisle is, in general, a space for walking with rows of seats on
either side or with rows of seats on one side and a wall on the
other. aisles rarely are wide enough for 3 people to stand side-by-
side. Food aisles are where goods are displayed. At the end of
food aisles may be found crown end displays, where high-
margin goods are displayed for impulse purchase.
Plinth
Plinth is case platform upon which a special display is given to the
product. In Hypercity no product is placed on the floor. To place
heavy products for eg sugar, detergents etc they use plinth. It is
basically wooden square shaped block used to give special
display to the product.
Bin
A "bin box" or pallet sized container: bulk box . Bin is basically
used to display offer stock to push sales . It is used to hold bulk
quantity of a particular product . Usually offer stock is displayed
there in huge quantity. Products having long shelf life are placed
there.
FIXTURE
There are basically two types of fixtures available in hypercity
1.Two tier
2.Three tier
Basically the products which are light weighted but require
special display as can add on to sale eg does, talc, soaps, and
moisturizers are placed there.
Fixtures help to attract customer’s attraction.
End cap
End cap is a display for a product placed at the end of an aisle. It
is perceived to give a brand a competitive advantage. It is often
available for lease to a manufacturer in a retail environment. In the
retail marketing world, location is everything. One of the most
popular display areas for merchandise in a grocery or department
store is the hub at the end of an aisle, also known as the end cap.
An end cap is highly visible from the popular perimeter shopping
areas, and each aisle section contains four end caps. Competition
for the right to display products on an end cap can be very fierce,
especially among beverage and snack food companies. An end cap
usually contains items which have a higher profit margin, such as
carbonated sodas, savory snack foods and seasonal offerings.
Quite often the end cap will be stocked with a small supply of
items available in a neighboring aisle. The hope is that a customer
will visit the regular aisle if a particular flavor or size is no longer
available at the end cap. In this way, an end cap display serves as
a teaser for the larger assortment of products in the aisles. Even if
a customer has no need to venture down a particular aisle, the
convenience factor of grabbing a beverage or snack at the end cap
has its own appeal.
Promotional tools used in hypercity
Various promotional techniques are adopted in the
hypermarket. These techniques help to push the sales and
thus increase stores profit and also help to provide better
understanding of the product to customer.
• PRICES
• LOWER ADVERTISEMENT
• PROMOTERS
• SHELF TALKERS
• SPECIAL WEDNESDAY OFFERS
• SPECIAL DISPALY
• HYPERCITY DISCOVERY CLUB CARD
• SAMPLING
• HYPERCITY EXCLUSIVE OFFERS
Lower Prices: Hyper city offer prices to its customers below the
MRP. It is the pricing strategy promising the consumer lower prices
without the need to wait for sale price event or comparison shop.
Lower prices is the important tool which helps to attract the
customer. Lower prices and convenient shopping help this
hypermarket to enhance its sales.
Hyper city discovery club cards: These card are basically used
to create sense of belongingness among its esteem customers
.Through this card they become member of Hypercity . At
Hypercity certain products carry points on them which get stored
in your Discovery Club Card and you can redeem them whenever
you wishes .
READY FOOD
Durin
g Pre
SKU Description Offer Offer MRP HCP Offer Offer
1000544 NUTTELLA CHOC SPREAD
08 350 34 15 200 175
RS.25/- off RS.25/- off
GM on mrp on mrp
1000077 Rs.11/- off Rs.11/- off
11 Parle Cheesling Jar 320g 95 24 60 49 on the MRP on the MRP
1001019 Britannia Good Day Buy 2 Rs.8/- off on Rs.8/- off on
22 Cashew Biscuits 250gm 223 128 23 for 38 the MRP the MRP
INSTANT FOOD
Durin
g Pre
Sku Description offer offer MRP HCP OFFER
1000226
20 QUAKER 400 GM PACK 25 9 55 50 Rs. 5 off on MRP
1000037 TOP RAMEN NOD MASALA FREE TOP RAMEN NOD
65 480 GM P 44 21 50 45 CURRY 80 GM P worth Rs.14
1000221 WAI WAI 123 NOODLESVEG
43 75 GM 183 116 10 10 Buy 4 get 1 free
BAMBINO MACRONI
1E+08 ELBOW 1000GM 53 5 58 49 Rs 9 Off on MRP
MAGGI PAZZTA
MASALA PENNE
1E+08 65GM 295 147
BEVERAGES
Staples
SKU during
Number SKU Description offer pre offer HCP offer
HYPERCITY SUGAR PR 5
100022197 KG 1282 1359 177 special price
100008984 TATA SALT 1 KG PP 860 529 11.88 special price
HYPERCITY CHANNA DAL
100020377 1 KG 545 427 39 special price
LAXMI MUSTARD OIL 1
100229004 LTR PET 493 542 65.49 special price
Homecare
durin
g preoff mr
Sku Description offer er p Offer
get scotch brite floor
1002441 TERZO FLOOR 104 cleaning cloth free worth Rs
32 CLEANER 500ML 37 45 25/-
1001665 SCOTCH BRITE FLOR 159
64 CLEANG CLOTH 130 25
1001067 MR MUSCLE KITCHN 13
65 TRIGER 500 ML 19 70 10rs off
1002561 RIO MOPX FLOOR 15
101
89 CLEANER 5 LTR 101 0 11rs off on mrp
Personal care
duri
ng Preoffmr
Sku Description offer er p Offer
100187 VAS HEALTHY WHTE 13 get 1 ponds daily face
498 BDY LTN 300ML 125 50 9 wash 50 ml free
100006 PONDS DRM FLWR get 1 ponds daily face
899 MAGC TALC 400GM 136 39 95 wash 50 ml free
100007 PONDS OILCTRL TALC get 1 ponds daily face
082 400GM 40 12 97 wash 50 ml free
1000070 PEARS FACE WASH Buy 2 Pears Face
50 60GM 79 2 Wash, get Rs 15 off
1000070 PEPSODENT 2 IN 1 TP
56 150GM 149 45
From above chart we can figure this out that after sampling
sales has improved. Thus Sampling is very important tool of
sales promotion.
The sampling of Tulsi Tea is done in the month of June and thus
achieved highest sales in that month in comparison to other
two previous months
Status of Average Weekly sales during last
three periods(April,May,June)
avg
sub dept weekly
id class name sales ) Status
101- Period1 period 2 period 3
staples (April) (may) (June)
101-
satples 367 361 411 growth
pulses 37 86 99 growth
Cereals 88 37 41 growth
flours 24 24 26 growth
spicemasala1
27 127 1189 111 growth
edible oil 90 95 111 growth
102-ready
food
ready food 424 411 565 growth
savories 147 137 216 growth
biscuits 70 92 103 growth
confectionery 129 110 166 growth
sauces 16 13 18 growth
pickels&chutn degrow
eys 22 21 21 th
103-
instant
food 128 105 138 growth
103-
instant noodles
food soups 66 52 70 growth
desserts 10 8 11 growth
ready to fry 8 7 12 growth
degrow
canned food 4 5 3 th
104_bever
ages 685 424 486 growth
104_bever
ages drink juices 605 354 399 growth
tea coffee 57 53 68 growth
health drinks 24 17 19 growth
105- degrow
homecare 190 309 236 th
105- degrow
homecare detergents 59 189 107 th
household
cleaning 41 48 49 growth
disposables 25 19 23 growth
degrow
shoe care 4 5 5 th
106-
personalca
re 463 526 567 growth
106-
personalca personal degrow
re hygiene 90 118 95 th
hair care 82 76 88 growth
oral care 40 38 52 growth
sanitary degrow
needs 22 45 19 th
Till Date sales position of
Hypercity
a