Vishal Dec 2011 SIP

A PROJECT REPORT ON
EFFECTIVENESS OF PROMOTIONAL ACITIVITIES IN INCREASING SALES (A STUDY DONE FOR SHOPPERS STOP)
Submitted for partial fulfillment of the requirements for the degree of POST GRADUATION DIPLOMA IN MANAGEMENT (MARKETING) BY VISHAL AGARWAL
Roll No. 0057
Under the guidance of Mrs. THIRUMAGAL PILLAI A Study conducted for SHOPPERS STOP, PUNE
INDIRA INSTITUTE OF MANAGEMENT TATHAWADE, PUNE 41103
INDIRA INSTITUTE OF MANAGEMENT, PUNE
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ACKNOWLEDEGEMENT
With great zeal, I present my individual summer training Report in PGDM (SEMESTER III) on SHOPPERS STOP (PUNE) INORBIT MALL. I convey my deepest gratitude to Mr. NITIN ALMEDA (UNIT HEAD), Mr. HEMANT DANGE (OPERATION HEAD), and Mr. IMRAN SHEIKH (DEPARTMENT HEAD MENS CASUAL SECTION) and MS. NEHA KUKKAL (HUMAN RESOURCE) , and all other staff members of SHOPPERS STOP who have been very co-operative and helpful in providing vital information for my project. This Summer Training has imparted me a professional exposure to the real corporate world and its general management orientation. By working at SHOPPERS STOP, studying different BRANDS of SHOPPERS STOP, knowing the criteria of making LOYAL CUSTOMERS, interacting with professional departmental heads and by preparing this report, it has added a practical touch to my theoretical knowledge. I avail this opportunity to convey my sincere thanks to DR PANDIT MALI, the director of INDIRA INSTITUTE OF MANAGEMENT PUNE. I am thankful to PROF. THIRUMAGAL PILLAI, my project guide for recommending me the necessary information for the report. Her instilling support and enthusiasm, expert guidance and insight have lent my project a unique touch. I forward my gratitude for the compulsion of this most wonderful aspect of our PGDM curriculum without which knowledge of management is incomplete and futile. I also want to thank PROF.SUNIL KANT VERMA without whom this project would not have got such perfection. Thank you sir for inspiring and helping me. At last I am also thankful to my family member and friends who had given me their constructive advice, educative suggestions, encouragement and co-operation to prepare this report. PLACE: PUNE DATE: Mr. VISHAL AGARWAL
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EXECUTIVE SUMMARY
All organized retail sector wants to increase their revenue inflows for which different promotion schemes are designed to attract customers to the store and to increase the sales volume. So at shoppers stop after analyzing the customer expectation, I re-suggested a promotion schemes which creates the most affective impact upon the customers, that will increase the store profitability and the footfall.
PROJECT TITTLE: Effectiveness of promotion in increasing sales (a study done for

shoppers stop).
INDUSTRY: Retail COMPANY: SHOPPERS STOP OBJECTIVE: 1) PRIMARY OBJECTIVE

a) Effectiveness of promotion activity in increasing sales (a study done for shoppers stop). b) To study and observe customer expectation and impact of store promotional activities at shoppers stop.
2) SECONDARY OBJECTIVEa) To take customer feedback about the overall feel and ambience of the outlet. b) To understand the use of technology in managing the ongoing activities in store. c) To study the merchandise mixes in apparel category in relation to private brands. d) To compare customers walk-ins during regular v/s week-end.
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SCOPE:
1) The survey is very much beneficial to find out about the efficiency and effectiveness of promotion. 2) The study focuses on to collect views and suggestion from shoppers stop customers. 3) The study will help to find out new ways to satisfy existing first citizen member.
RESEARCH METHODOLOGY:
As a researcher we designed a customer questionnaire to understand the customer aspiration and need from the shoppers stop. So primary data was collected from the questionnaire and a most affective revenue increasing proposition was suggested to shoppers stop. So, non-probability convenience sampling was adopted and about 150 customers were questioned who belong to the targeted customer category of shoppers stop. Sample frame was shoppers stop customers mainly at Viman nagar.
SAMPLING TECHNIQUES: NON PROBABILTY CONVINENCE SAMPLING. SAMPLING METHOD: CONVIENECE SAMPLING. SAMPLE PLAN: SAMPLE UNIVERSE: PUNE CITY. SAMPLE FRAME: SHOPPERS STOP CUSTOMERS. SAMPLE UNIT: INDIVIDUALS (HOUSEHOLDS, BUSINESSMAN, COLLEGE
STUDENT, WORKING, ETC).
SAMPLE SIZE: 150

INDIRA INSTITUTE OF MANAGEMENT, PUNE Page 4
DATA COLLECTION METHOD: Primary and secondary data. PRIMARY DATA: Questionnaire. SECONDARY DATA: Interviews, magazine, books, article. RESEARCH TOOL: Questionnaire. RESEARCH ANALYSIS: Pie chart and table.
FINDINGS:
1) Sales period of shoppers stop is kept late as compare to other competitors. 2) Visibility of store to mass public (outdoor advertisement ) was not appropriate 3) The prize kept with the brands on promotion is generally kept very high which is out of the reach of general customer (shopper). 4) Cost of promotion plays a major role in deciding and choosing the place for promotion activities. 5) Benefits and tie ups which are under loyalty program booklet are not correct. 6) Less discounts on in-house brands. 7) Promotion activities are not such which could increase the sale of new products, which leads to less attention to new product. 8) Workers were not trained properly.
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CONCLUSION:
Shoppers stop has already established its brand image in market. it has second highest customer loyalty (20 lacks loyal customer) but since shoppers stop has just open up a new store at in orbit mall (pune), so in order to increase its footfall and maintain competitive advantage over rivals it must increase visibility of store ,by increasing promotion activities , like outdoor advertisement, advertisement on radio, weekends discounts or some prizes, occasion basis games etc. Shoppers stop has to maintain customer interest and awareness in front of customers to be a market leader with expansion.
SUGGESTION: The study has provided with the useful data from the respondents.
There has a lot to be recommended. Following are the recommendations: 1. In organized retail the sales person should be well versed with the professional approach which is needed by the educated niche class of customers in which the basic information of entire product should be thoroughly understood by the customer. 2. The product feature explanation by professional sales person imparts proper and adequate knowledge about the product by the sales person educate the customer thoroughly and later on this increases the trust of customers on the retailer. 3. Proper product merchandize mix and adequate discounts offered by the retailer increases the credit worthiness of the retailers and this compels him to close sales in the store itself. 4. Visual merchandize also plays a vital role in retail operation; the message which is transmitted by visual displays should be clear, contemporary and as per the seasonality. 5. The frontal display should match with latest fashion and trends going on and all frontal accessories should change frequently in order to create variety to young and niche customers, this class looks for freshness and change frequently.
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6. Better variety of products displayed in width increases cross selling of product which in turn increases footfalls to the store. 7. The changing taste and preferences also increases the customers value for the store. 8. The customer inquiry designed to be efficiently converted into prospective customers with efficient customer mood swing monitoring. 9. The critical factors responsible for sales enhancement were also taken into account for market research project. 10. A brief and critical analysis was taken into account and corrective suggestion and recommendation were given with a brief conclusion with corrective measure was submitted. 11. More number of in-house brands also increases the customer visit frequency to the store.
LIMITATIONS OF THE STUDY:

1) It is very difficult to measure perception by means of mathematical tool. 2) This research was one in Pune in-orbit mall hence this is only valid for Pune in-orbit mall. 3) It is assumed that respondents have full knowledge of shoppers stop but if he doesnt have proper knowledge then result may came wrong. 4) The respondents show reluctance in providing information.
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TABLE OF CONTANTS
S.NO PARTICULAR Executive summary Chapter 1 Chapter 2 1.1Introduction 2.1Size of the Industry 2.2Growth trends 2.3Government policies 2.4Major players 3.1Company and product profile 4.1Literature review 5.1Objective and scope of study PAGE NO. 4-7 8-10 11-16
Chapter 3 Chapter 4 Chapter 5
17-20 21-40 41-42
Chapter 6
Chapter 7
Research methodology 6.1Research design 6.2Sampling design 6.3Data collection 6.4Limitation 7.1Data analysis and Interpretation
43-47
48-57
Chapter 8
8.1Findings and suggestion
58-60
Chapter 9
9.1Conclusion
61
Chapter 10
10.1Bibliography
62
ANNEXURE
63-65
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Chapter No. 1 1.1 INTRODUCTION

The purpose of study under this project is to determine the impact of promotional activity in increasing shoppers stop sales and footfall in pune city which is situated at in orbit mall. Promotion is comprehensive term, it is a most wide concept among 4 ps of marketing, it includes advertising, publicity, public relation, personal setting. Shoppers stop perform promotional activities like exchange offer on salwar ,kameez, buy one get one free on shirts , Rs 1000 gift vouchers , fortune wheel offer , perfume on purchase of Rs 9500 and first citizen membership card. In today s competitive scenario market research is an sufficient tool , to have watch on opportunities and changes in competitive environment so as to have competitive advantage that cannot be matched by others. In today s competitive scenario market research is an sufficient tool , to have watch on opportunities and changes in competitive environment so as to have competitive advantage that cannot be matched by others. In todays world of intense competition and rapid dynamism, all the companies worldwide are tuning their focuses on the customer. Suddenly, the customer had succeeded in capturing all the attention of the companies towards him, so much so, that the once famous maxim, customer is the god has become so true and relevant today. There has been a paradigm shift in the thinking of these companies and none other then the customer has brought this a Earlier there was a sellers market, since goods and services were in short supply and the sellers use to call the shots. But, ever since the advent of the era of globalization, there has been total transformation in the way the customers being perceived. Today, marketers are directing their efforts in retaining the customers and customers base. Their focus has shifted towards integrating the three elements people, service and marketing. The customers importance has assumed imponderable proportions in todays world, because of the inherent value that the customers command. A customers can make or break a company.
It is the responsibility of every company to see that all its customers are equally satisfied with them, for one single dissatisfied customer will tell at least nine others about the dissatisfaction and will spark off a chain reaction and spell doom for that company. In such scenario, retention of the existing customers assumes diabolical proportion. Research has thrown light on some important aspects of customers retention it has been proved empirically that acquiring new customers can cost five times more than the cost involved in satisfying and retaining current customers.
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Chapter No. 2 2.1 SIZE OFINDIAN RETAIL INDUSTRY
The present value of Indian retail market is estimated to be 1,20,0000cr (1270billion)and annual growth rate is 11.2% retail market with food and grocery is of RS 7,43,900cr is the largest of the different types of retail industries present in India . Furthermore around 15 million retail outlets help India win crown of having highest retail outlet density in the world.
Contribution to GDP: India-11% USA-10% China-8% Brasil-6% (Source:-CII-AT KEARNEY RETAIL STUDY).
2.2 GROWTH TREANDS:

Factors which increase the retail industry in India. 1. Rise in the purchasing power of Indians: The rise in the per capita income in the last few years has been significant. 2. Use of credit: a typical Indian is most conversant with using credit card than carrying money. This has led to shift of the consumer base towards supermarket and make the payment in the form of credit. 3. Comfortable atmosphere: a visit to a retail store appears to be more soothing for generation Y.people and kid prefer to shop in an air conditioned.
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4. Food and apparel retailing key drivers of growth. 5. Organized retailing in India has been largely an urban. 6. Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption. 7. ITC is experimenting with retailing through its e-Chou pal and Chou pal Sagar rural hypermarkets
2.3 MAJOR PLAYERS:

Top company of India India topped the AT KEARNEYS global retail development index for two consecutive years and this has infatuated Indian as well as foreign retail player to invest. 1) BIG BAZAR: big bazaar is a chain of department stores owned by the pantaloons group (future group) and headed by kishore biyani and head quarters at Mumbai. It offers all types of household items such as home furnishing, utensils, fashion product etc. 2) K RAHEJA: they forayed into retail with shopper stop; Indias first department store in 2001 .it is the only retailer from India to become a member of prestigious intercontinental group of department store. They signed 50:50 joint venture nuance group for air port. 3) TATA GROUP: established in 1998 trend .one of the subsidiary of Tata group operates Westside, a lifestyle retail chain and star India bazaar a hypermarket with a large assortment of product at the lowest price .Tata has also formed a subsidiary named infinity retail hitch consist of croma ,a consumer electronic chain. 4) RPG GROUP: one the first entrant into the organized food and grocery retail with food world stores in 1996 and then formed an alliance with dairy farm international and launched health and glow outlets. RPG has 8 lakh sq feet of retail space with turnover of 6.5 billion in 2010.
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5) covering
LAND MARK: was launched in 1998 in India .lifestyle is spread across 10 cities 5.8 lakh sq feet .they plan to invest Rs 300 cr in the next two year to expand on
maximum chain. 6) PIRAMAL GROUP:IN September 1998 ,PIRAMAL enterprise announced their arrival into retail with launch of three retail outlet .Indias first true shopping mall of international standard road,a lifestyle department store named primal and family entertainment centre known jamming. 7) BHARTI WALMART: THEIR PLAN INCLUDE US $ 7 billion investment in creating retail network in the country include 100 hyper markets. They signed 50:50 joint venture .WalMart will do cash and carry and bharti will do the format end. 8) RELIANCE: Indians most ambitious retail plan are by Reliance. There are already more than 300 reliance fresh stores and first reliance mart ha opened in Ahmadabad. as
Predictable mall distribution space in India:
In-percentage
26%
30% Delhi Mumbai
5% 5% 7% 27%
Hydrabad pune Bangalore Tier two cities
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GOVERNMENT SUPPORT AND POLICIES:

India's government seems to be on a gradual but definite path toward allowing foreign retailers into the country.... suggests the A.T. Kearney's Retail Development Index 2010. It is a common knowledge that the Union government has to face a number of hurdles both from it's opponents as well as it's allies before it could announce the final verdict. There have been demands from all corners regarding framing of rules to safeguard interests of the so-called small traders. Simultaneously economists have the consensus that industrialization is imperative for the growth of the economy and foreign investment has to play an inevitable role in it.
Entry of large players: stiff opposition from Left Parties

The recent outburst of fury among the Kerala's LDF(Left Democratic Front) Government has been noticeable. They have exacted for a three-pronged approach to prevent the retail giants from serving the Keralians. At the first stage, not only MNCs but also the local retail giants like Reliance will be shown the red signal. In fact a magnified CPI protest has compelled a Reliance Fresh outlet in Kochi to take police protection. The draft of a bill has been finalized to amend the Kerala Essential Commodities Act so that the state government can intervene in the retail market. As a second step, local councils (70% of which is controlled by the Left) will deny licenses, that are mandatory to start a retail chain in the state. Kochi and Tiruvananthapuram corporations will be in fact commanded to reconsider the licenses of outlets that are already operating in the regions. This strategy grants more power to the state. However a ban on shopping in these outlets is still not clear. The third and the most revolutionary judgment is actually an outcome of the whole game. Government-controlled supermarkets and hypermarkets will be established in some of the key cities in the state. This rigid legal wall not only in Kerala but across the country has been born out of a traditional mindset. Kerala claims to have a literacy rate of 90.92% and a sex ratio of 1058 females per 1000 males. The data speaks for the government's prudent commitment in the case of Kerala. So it is high time that the government opens up avenues for its people to let them grow and become self dependent.
But the government is still holding good, the conventional 'infant industry' outlook. The main worry is the negative impact on the already gloomy condition of employment. Let's make an attempt to understand the vicious circle of unorganized retailing and present employment scenario. Unorganized retailing has a share of about 96% in the Indian retail sector. But why should people work in such miserable situations if the manufacturing and services sector are booming is the overwhelming question. There has been a trend to migrate to cities in search of alluring bright city lights. But the consequences has been been even worse- earning lower than expected wages (Harris Todaro model of migration). The illiterate and unskilled people ultimately set up a grocery shop to earn a living. This gives birth to another unorganized retail shop in India and thus enlarges its share. So the unorganized retail market in India has born out of fate rather than selection.
The Actual Scene

Those opposing the expansion of organized retail in India must understand that the share of primary sector shrinks and that of the secondary and then the tertiary sector expands as an economy grows. This is the basic structural adjustment in case of any transforming economy. India is at a take off stage. Retardation in the agricultural sector is not permissible but inhibiting the growth of services on grounds of protection to agriculture is more irrational. A proof of this has been seen in a small town of North Bengal. The opening of a Big Bazaar (brand name for stores under Pantaloon) departmental store has seen a human deluge of about 7,000 people in the 35,000 sqft shopping mall by 3pm. This clearly indicates that people (even in remote places) have become fed up of monotonous marketing practices and demand nowadays is purely governed by choice.
The Ruling UPA government's outlook

The UPA government is rather clear in its aim of taking India to new highs. The commerce minister has repeatedly asserted that FDI will kill two birds with the same stone. It will generate substantial direct as well as indirect employment and at the same time will not tamper with the present scope of the unorganized retail market. The indirect employment includes jobs in transport, packaging and other logistic services. It will enhance competition in the country thus giving a virtual chance to face global challenges while operating at home. Mr. Nath is clearly
focused on the utilization of FDI in acquiring benefits. It is true that such investments will bring in huge imports but this may also help in the Indian products reaching the foreign consumers. Foreign majors such as Wal-Mart, Tesco and Carrefour are ready to enter India. The UPA government has already permitted 51 percent FDI in Single-brand products without consulting its allies and it is expected that slowly but steadily the government will achieve its goal.
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Chapter No.3 COMPANY AND PRODUCT PROFILE:

Shoppers Stop is an Indian department store chain promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri, Mumbai Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. With the launch of the Navi Mumbai departmental store. As a part of its new philosophy of providing the customers with a new shopping experience, Shoppers Stop came up with several initiatives - it planned to increase per store area from around 40,000-45,000sq. Feet to 75,000-85,000 sq. feet. It also started a new concept in the retail industry by setting up trial rooms with day and night lighting options so that consumers could check how garments would look during the day and in the night. The other initiatives included a new dress code in black and white for the employees and training sessions for the employees to help them tackle demanding customers with varied tastes. Shoppers Stop also introduced a company anthem for the staffers penned by renowned lyricist Gulzar and sung by popular Indian playback singer Sonu Nigam. It was played every morning across all outlets in the country as a song of celebration. Shoppers Stop brought out collectible shopping bags with the different &attractive themes like fashion for the ages. To make shopping an enjoyable experience for its customers, it launched an in-store radio in association with Blue Frog Media Pvt. Ltd which aired music across all its stores in India while radio jockeys offered tips on fashion and wellness. It also planned to start its online portal by the end of 2008 to enable customers to shop online. In addition to these initiatives, Shoppers Stop also started an environmental awareness campaign called Think Green. As part of this initiative, it planted more than 500 trees and distributed 1,500,000 seed sachets among its customers. Besides, a series of print and television commercials in black and white with an environmental message conveying Shoppers Stops repositioning strategy were launched effectively by the company. Shoppers Stop planned to invest around Rs 15 billion to increase the number of outlets to 48 by 2011. It had earmarked Rs.200 million for the rebranding and repositioning exercise. But customers said that from their point of view, there was no major change in terms of price or special offers. Some analysts were of the view that the new logo had nothing unique to offer except for a change in
shape. Some even wondered why the retailer had decided to rebrand itself considering that it was doing reasonably well and had just completed a successful year. Turn over of shopper stop till June is $ 43.92 bn.
Store
Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name Shoppers Stop in India. Shoppers Stop has 43 stores across the country and three stores under the name Home Stop. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. Shoppers Stop opened stores in Amritsar, Bhopal, Indore, pune and Aurangabad.
Product
Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Ginny & Jony, Carbon, Corelle, Magppie, Nike, Reebok, LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, whos men's and women's outerwear are retailed in India exclusively through the chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoo zoo the brand mascot for Vodafone India
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Marketing
In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start Something New mantra .And introduced international brands like CK Jeans, Tommy Hilfiger, FCUK, Mustang, Dior across the stores. The focus of the reposition was on the service, ambience up gradation and customer connect. Shoppers Stop connects with the youth audience through adopting the communication routes relevant to youth, up the fashion quotient through merchandising, and create ambience that connects with the mindset. The brand campaign addresses environmentrelated issues in a youthful, tongue-in-cheek manner. Shoppers Stop as a brand active on social media marketing platforms with Facebook and Twitter to connect with this audience. Shopper stop sister store
Crossword Bookstores
Crossword Books is the largest chain of bookstores in India with 52 branches. Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword Crossword is positioned as a lifestyle bookstore with their spacious, well laid out stores which encourages customers ease in browsing through the merchandise of books, music, stationary and toys.
Home Stop
Home Stop is premium home furnishings home concept store, which offers products in home decor, furniture and accessories, bath accessories, bedroom furnishings, mattresses, draperies, carpets, modular kitchens and health equipment.
Desi Cafe
Cafe and their operations have been taken over by CAF COFEE DAY(CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed with Shoppers Stop to run its Desi Caf outlets.
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Hyper City -Hyper City provides customers a wide variety of range of products for shopping in a large and modern retail environment. It offers a contemporary range of products, sourced from both local and international markets. .
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Chapter no.4 Literature review
4.1 RETAIL PROMOTIONS AND EFFECTIVENESS

The retail market in India today is flooded with promotional offers in order to attract customers because of increasing competition. Managers' incentives make them concerned about their own motives and often forget what the customer actually values and prefers. Satisfying these unstated needs of consumer can give any brand/store an intangible and inimitable competitive advantage. This article focuses on the needs of different types of consumers belonging to different age groups (15-24 and 25-40), their perception on discounts and what they value most.
The retail market in India today is flooded with promotional offers to attract customers because of increasing competition. In this scenario, most managers are only concerned about getting the sales through. In order to measure the effectiveness of any promotion offer, managers often fail to realize that a consumer can have his/her own parameters to evaluate, which can indeed vary depending on age of the customer. Types of Promotions Today, consumers are left with a range of promotions to choose from, in almost all the product categories A retailer can offer any type of promotion mixes: Advertising, Personal Selling, Public Relations, Sales Promotion, Visual Merchandising, in store decor. They also offer consumers, different types of discounts such as Price Discounts (happy hours, reward program, cents-off deal, loss leader among others), Price reduction may be a percentage marked on the package, direct % off, indirect example: 50%+20%, Quantity Discounts, Coupons (free
standing insert, on-shelf couponing, on-line couponing, mobile couponing among

others) Games
and
Events (Online
interactive
promotions,
contests/sweepstakes/games). Therefore the consumer today is left with a range of promotions to choose from, in almost all the product categories. Despite the economic attractiveness, it is highly likely that the consumers will not be able to evaluate or take advantage of every offer they come across. The Three Faces of Consumer Promotions There are three aspects through which a deal can affect a consumer: economic (changing the economic utility associated with a product purchase), informative (influencing consumer's beliefs about the brand or industry) and affective (Affecting the feelings and emotions aroused in the consumer) (Priya Raghubir et al, 1996). The Economic route focuses on both monetary as well as non-monetary (time and effort) gains and losses. Non-monetary benefits can accrue as well, such as decreasing transaction time or effort required for a consumer to make a decision by simplifying the decision process (i.e., providing a good reason to buy). The information route focuses on the information conveyed such as price expectations, quality expectations and promotional patterns. These factors lead to crucial implications on brand equity. The affective route focuses on the emotional aspects of consumer such as, does the consumer feels proud after the deal, does he feel embarrassed due to the cheap price product. Based on these three aspects, we developed the 3E model of deal evaluation - Economic, Evaluation and Emotional and developed research on these aspects. Generational Cohorts In order to proceed with the research, we decided to compare two cohorts of customers so as to consider the age factor. In order to choose our cohorts, we did a content analysis of Indian history and tracked major events that might have had an
impact on consumer behavior. The major event in the history of India was gaining independence. People of that period are not very technology friendly and are unwilling to explore advances in technology. The second major event was the Green Revolution. The Revolution created plenty of jobs not only for agricultural workers but also industrial workers by the creation of lateral facilities such as factories and hydro-electric power stations. People from this cohort are hard working and less of leisure seekers. The third major event is advent of Television. This brought with itself an age of easy information dissemination. This incident signaled the start of technological inventions. The next major event that impacted Indian consumer was the advent of internet and mobile phones. This gave rise to the next cohort which is totally influenced by the western culture but holds Indian values deep within. Thus we have selected the age groups 15 - 24 and 25 - 40 as these people mark the new beginning of Indian culture and these are the most observed supporters of mall culture. However, there are many differences within these two groups itself. In urban areas, usual age when one gets married is 23 - 27 years. Marriage is an event after which one's life changes immensely and thus we decided the average of this period as our interval break. Evaluation of a deal heavily depends on the type of discount offered and complexity involved Through our survey, we found a lot of similarities and interesting dissimilarities among these groups. Both the age groups value discounts equally and tend to increase their spending whenever there is a good deal offered. They also prefer to spend time in searching for deals and visit multiple stores before making a purchase. They also do not prefer to wait for their favourite retail store to go on promotion and search for deals in other stores. However, customers belonging to
the two groups differ significantly in terms of evaluation of deals. The older group tends to evaluate the deals carefully and then selects the deal that gives maximum value, whereas the younger group does not prefer to spend time in evaluating the deals and are attracted easily. Also, there is a difference in the types of discounts preferred. The older group prefers quantity discounts while younger prefers price discount. Another similarity that was found was that both the age groups prefer better organization and in store services during the time of promotion. They give equal preferences to store services. Thus, we observed that, Economic aspect of customer's way of measuring the effectiveness of a deal is the same across all ages. Customers are ready to pay high prices for trusted brands; however, they want fair deal when the store claims to be on sale. Low value discounts which often do not compensate even for search costs involved might lead in severe brand image erosion. Evaluation of a deal heavily depends on the type of discount offered and complexity involved. As we observed, one category of customers do not mind the complexity of deal if the value associated with it high. However, the other group of customers might get irritated with the type of discount offered, thus eroding the store image in their minds. Intensity of deal also matters heavily for all customers as they strongly believe in the fact that 'price is an indicator of quality'. Simple efforts like additional billing counters, better arrangement of toilets, queues, trial rooms etc can lead to better image of stores in customer's minds, which is valuable to initiate positive word of mouth advertising and affect the customer through the emotional route. Promotional Motives The study also concentrated on interviewing people from the industry (United Colors of Benetton, Shanthi's, and Reliance) to get their views on motives behind giving promotions. The main objectives for giving promotional offers were to
restore normalcy in sale, clear the stocks which had long shelf life, to match apparels with the season, for monetary profits through increased sales, to increase brand awareness and to keep customers in rotation. Also a common pattern of bi-annual discounts was observed to be given during September-October and during January period. The rationale behind giving sales promotions during the specified period of August and January is as follows. Generally the store gives percentage discount sales during August 1st - 15th. This is an ideal timing to clear the cotton garments that were kept in stock by the company owing to the just concluded summer season. This is because customers prefer "value-add" clothes in the forthcoming season because of the array of festivals during that period namely Onam, Ramzan, Dussehra, Diwali, Christmas, New Year and Pongal. The shop stocks "gorgeous, heavy weight and valuable" dresses for the festive period due to which promotional activities are done to clear the cotton garments and stimulate the sales of the new arrivals. Also, the cloth manufacturer is piled up with stocks of garments which he gives at a lower price to the retail shops for clearance. This results in more margins for the retail shop. As January nears summer shops give a discount to clear the previous items and stock new cotton garments. Performance Indicators The success of a promotion is measured through various indicators. Some firms look at individual components of promotions like impact of visual merchandising, advertisements, discounts, sales personnel behavior while some others look it as on a consolidated basis. Exhibit 1 gives ways and means, through which these parameters are measured.
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Promotional Component
Measurement Done through the sales data and footfall measurement. Also customers
Advertisement
directly asked through what means they came to know about a deal in the st and hence the effectiveness is measured.

Number of footfalls and conversion Average bill value Monthly sales Average sales per sales personnel Competitor comparison
Discounts
Done through analysis of footfalls. They normally calculate the norm Sales personnel
conversion that will take place for a certain number of footfalls. If the billing more than the result it is attributed to sales personnel effectiveness.
Exhibit 1. Measuring the Promotional Offers Financial Analysis Publicly available financial data for large retail shops like Shoppers stop, West side were used to analyze the impact of promotional discounts on the quarterly sales of the shops. Both give bi-annual discounts in addition to different types of discounts during specific festivals. Financial analysis on an aggregate basis showed that for Westside the Jan March quarter was dry sales period because offers were being given during June to restore normalcy. So, the March - June quarter indicate normal sales period. A dip in sales was observed during Jan - March quarter and then discounts were
given. The other quarters during September and December have huge sales increases due to the promotional offers given during festival season. Similar analysis of Shopper's Stop, which also offers a bi-annual discount sale, showed this cycle. In addition some firms provide offers during the year to promote their brand. The normal sales period for Shoppers stop was observed to be as January - March where normalcy in sales was restored. There is a dip in sales during the next quarter and then another promotion is being offered leading to sales increase. The festive season starts in the next quarter and the sales reaches peak. Conclusions Promotional offers certainly have its positive effects on the top line of the firm. To further enhance this positive effect stores have to segregate customers into groups. From the customer's perspective two types of customer segments were identified based on their age groups. These segments are unique in nature and have their own way of shopping and deal analysis. These two segments are the primary customers of the large format retail stores in India. So, studying their behaviour is imperative to grow the top line. Customer survey indicated that the customer group 1 who belong to 15-24 age group prefer simple discounts like flat percentage offers which is a price discount whereas the other group namely the 24-40 age group preferred complex deals like quantity discount wherein the percentage savings is not obvious. They believe that more cost savings occur in this type of deals. This customer groups predominantly consist of married couples with children who shop having their family in mind. They have a notion that with quantity discount more savings can be done as their shopping quantity increases than normal in one purchase itself. On the other hand a young customer group of college students and working professionals value money
more than value. They see more savings on a direct discount on the apparel and hence believe that there is more savings in money in price discount. They don't analyze complex deals and the actual savings they derive from it, thus preferring simple deals. One of the main reasons for this attitude is that they are being supported by their family financially and they do not see a reason to save money. This has huge implications to the store as the consumer surplus can be tapped by targeting both the groups with different discounts and hence increases the top line. Quantity discount should be directed towards 24-40 age group customers whereas simple percentage sales should be offered to 15-24 age group customers. Advertisements of these deals should be such that it appeals to the customer segment on which it is being targeted. So, profit of the store will increase due to proper direction of the offer.
4.2 why promotions: Consumers in today's dynamic economy have high expectations, and their behavior is unpredictable. It is critical to understand what promotional offers are presently having the highest impact. Promotional analysis is a technique of evaluating success or failure of a promotion using past time series data. It can be understood as discovering a correlation between sales patterns and marketing efforts which includes promotions offered and advertising. The objective of promotional analysis is to help a retailer understand the impact of past promotions and hence formulate future strategies which could be applied and adapted to produce profitable results.
Types of Promotions
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"Promotions" in any industry is a vital ingredient of marketing plan to retain best customers and to attract new ones. The retail market faces increasingly stiff competition, and is flooded with various promotional offers to drive-in traffic. Hence, the consumer today is left with a large range of promotions to choose from in almost all the product categories. To list a few:
1. Quantity/Product concession
1) 2) 3) 4) 5)
Buy one get one free Innovative cross-sell and up-sell strategies Free samples to test new product Offering promotions on particular day of a week to drive sales Pseudo personalized promotions targeting particular customer segment (students/promotions linked to age, height, gender, profession)
2. Price discount
1) 2) 3)
Some per cent off per item Fixed amount off per item Discount vouchers
3. Ads
1) 2)
On-line/e-mail coupon Mobile coupon
4. Shipping promotions
1) 2)
Free delivery of product Money off on delivery item by means of a selected ship mode
These are some of the promotions that may lure customers to purchase a product. In spite of such attractive offers, there is a high probability that a customer may not avail or take advantage of every offer that comes their way.
What retailers should know before launching a promotion?
Mere sales are not enough; the effectiveness of a promotion offered should be measured in order to draw more profit out of the offer given to customers. In order to do so, customer behavior should be analyzed. Retailers often fail to realize that a consumer can have their own parameters like age, gender, requirement, income and preference to evaluate a promotion. 4.3 How to Double or Triple Your Sales You can obtain immediate and measurable increases in traffic and sales.The G.A. Wright High Impact Sales Promotion Program can attract a crowd of new customers, produce a big and sustained increase in sales volume, and help prepare a business for long-term improvements in both sales and profitability.
Sales that are between 2 and 3 times normal volume are possible for most stores. And, this level of sales can generally be sustained for an extended period of time. After a promotion is completed, a long-term increase is likely as a result of new customer traffic, higher visibility, and enhanced store image.
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We were amazed with the continued volume and customer traffic after the first few days. This trend in the sales continued up to the very last day.
Successful retailing depends on building relationships with customers. A G.A. Wright Sales Promotion is designed to attract many new people to your store. Then we keep these new customers coming back to shop regularly so you can develop a long-term relationship. And, we show you effective techniques to nurture the relationship building process and keep your customers coming back for years to come.
A High Impact Sales Promotion Event can be a very effective competitive tool. It creates a great deal of visibility in a community, attracts many new customers, and pulls customers away from competitors.
Cash flow problems can be solved fast. All retail businesses face periodic problems caused by a changing economy or the difficulty in anticipating consumer demand and buying just the right merchandise. Some of the stock purchased doesnt sell, inventory becomes overstocked, and cash shortages develop. These problems do not lend themselves to long-term solutions offered by traditional advertising methods. They need to be addressed and solved immediately. At G.A. Wright we can help solve these problems and at the same time prepare a retail business to enhance sales and profitability in the future. Our sales were over the initial projection even during the economic recession. This promotion taught us by employing professional help, you can get professional results. G.A. Wright Client Ludwigson Jewelers
Significant events in the life of a store are appropriate times for a major promotional effort. Opening a new store, moving to a new location, remodeling, introducing a new line or new seasonal merchandise, or closing a store are all times to consider a high impact sales promotion.
A Sales Promotion Event can be effective for almost any retail store. Exceptional results have been obtained for all store sizes.
G.A. Wright techniques are tailored to the store and its surrounding community. The results in a small rural town can be as good as those in a large metropolitan area.
Benefits of a Professional High Impact Retail Sales Program
Retailers are devoting an ever increasing percentage of their budgets to sales promotion as opposed to traditional advertising. In many cases, top retail firms are allocating 40% to 50% of their advertising budgets to sales promotion.
There are a variety of reasons for conducting a sales promotion. The G.A. Wright Sales Promotion Program is tailored to fulfill the requirements and needs of each individual retail client.
The following objectives can be reached with a Professional Promotion:
1. A substantial increase in cash flow for a specific period of time. 2. Increased customer traffic.
3. Expansion in the size of the stores market area. 4. Enhanced store image. We are a very old and established business. Our clientele is basically made up of what is considered a better grade of customer. We were very apprehensive of our image. Much to our surprise and delight, they loved it . . . It was unbelievable! G.A. Wright Client W. B. Wilcox Co.
4.4 Apparel retailers ride promotion bandwagon to boost sales
Apparel maker and retailer Provogue offers an assured gift and allows shoppers to choose from its private brands under its Winter Double Blockbuster offer. Shoppers who buy merchandise worth Rs 3,999 can win gifts such as a Videocon LCD television, Kodak digital camera, a 3-day/2-night holiday, among others.
Loyalty card holders of department store Pantaloons can win a Sumo Grande MK-II vehicle or a 3 night/4 day Thomas Cook Holiday International Cruise if they shop for more than Rs 2,500. The chain also offers an imported designer glass set for only Rs 249 if shoppers shop for Rs 3,500 under its New Year Fashion Carnival. Shoppers can win a free Europe trip for four if they shop for more than Rs 1,500
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at
Tatas
Westside.
Jeanswear brand Levis offers goodies such as party bags, Tarun Tahiliani makeup kits and more on ladies jeans. Taking a leaf from consumer durable and automobile companies, apparel retailers have embraced innovative offers and promotions to entice shoppers to loosen their purse-strings further in the current season. While steep discounting was the norm in last winters sales, apparel retailers are doling out eye-popping offers this time, to sell more merchandise before the season ends. Our end of the season sales starts from January 15. We want to push out as much inventory as possible in the current season. Gaining market share in the peak season is always better than gaining it in the off season, as we can extract more value, says Nikhil Chaturvedi, managing director of Provogue. Such offers create a lot of curiosity and increase footfalls by 20-25 per cent, he adds. However, last winters sales story was completely different. Hit by slowing sales, apparel retailers gave as much as 80 per cent discount to clear inventories and meet working capital requirements. Besides, they also gave discounts three weeks in advance. Analysts say despite a jump of 20-25 per cent in the current seasons sales compared to last year, due to economic upswing, retailers are trying to push sales further to compensate for slower sales in the first half of this year.
Everybody has gone through a tough phase in the first half of this year. Though the X-mas-New Year sales are up by 20 per cent, they want to bring further momentum, says Purnendu Kumar of Technopak Advisors, a business consultancy. Adds Ashesh Amin, a senior executive from S Kumars Nationwide: Retailers are trying different schemes to liquidate their inventory. Whether it is discounts or offers, the impact is same. While discounts shave 8-10 per cent off retailers gross margins, offers and promotions have marginal impact on margins, Kumar says. Marketing budgets normally take care of offers and promotions and even brands participate in such offers, he adds.
4.4 Latest marketing strategies followed by brands like shoppers stop and Vodafone 1) New Marketing Strategies and Innovations for Shoppers 1. Providing merchandising for films like OSO and the recently released Love Aaj Kal 2. Fist Citizen Loyalty membership wherein one becomes member on payment of Rs 200 and customer can avail facilities like free parking, additional discount points, choose their safe date etc. 3. Innovations like community trial rooms used for bridal parties where the entire family can get some privacy while the bride tries out diff outfits.
4. Trial rooms having day and night lighting options enabling one to have idea of the outfits all stores having personal shopping assistants who can walk the customer through the store and advise the customer on items like apparel, jewelry, apparel and watches 5. Use of innovative methods to improve brand visibility at stores like getting live mannequins to showcase the merchandise also the use of 3D outdoor visuals 6. Introduction of events focusing on one category of merchandise at a time like Watch Out for Watches. 7. Change in Logo from the original oval shape to the new rectangular shape. 8. Introduction of the new Shoppers Stop mnemonic - SS
2) Recent Vodafone tie up
1. Entry in licensing and merchandising agreement for the zoo zoos 2. Work on revenue sharing basis with Vodafone 3. Appearance of Zoo zoos on T shirts, kids wear, mugs, bed furnishings Future Plans
1. Increasing the stores from 28 in 12 cities to 43 stores 2. Entry in new cities like Ahmadabad, Amritsar 3. Expansion as regards portfolio of international brands 4. Increase the no of First Citizen Customers by 3 lakh to 4 lakh
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4.5 The theories of Sales Promotion

Introduction Sales promotion comprises a range of tactical marketing techniques designed within a strategic Marketing framework to add value to a product or service in order to achieve specific sales and Marketing objective. Sales promotion is a technique which has significant potential to improve short term sales and Like direct response work; its effectiveness can be tightly measured. Although its strategic value Is the subject of considerable debate, nevertheless, it is an important tool of marketing. There are Few markets or products where it cannot be used and few brands to which it cannot be applied. Types of sales promotion: (i)Consumer oriented sales promotions: Targeted to the ultimate users of a product or service. Coupons, sampling, premiums, rebates, Contests, sweepstakes, and POP materials are induced the sales (ii)Trade oriented sales promotions: Targeted toward marketing intermediaries such as retailers, wholesalers, or distributors. Promotion allowances, merchandise allowances, price deals, sales contest and trade shows. Sales promotion methodology The traditional business world suggests that there are three different types of sales promotion Techniques: the push, the pull, and the combination. (i) The push theory of sales promotion techniques supports that you promote your goods To a retailer, who will then pass the wares along to their consumers? A push promotional strategy makes use of a company's sales force and trade promotion Activities to create consumer demand for a product. The producer promotes the product to Wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. A Good example of "push" selling is mobile phones, where the major handset manufacturers such As Nokia promote their products via retailers such as Car phone Warehouse. Personal selling and Trade promotions are often the most effective promotional tools for companies such as Nokia For example offering subsidies on the handsets to encourage retailers to sell higher volumes. A "Push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. Selling insurance or holidays directly). With this type of strategy, consumer promotions and Advertising are the most likely promotional tools.
(ii) The pull theory varies by focusing on the consumer himself. Go directly to the source To introduce your goods, and encourage a direct purchase. A pull selling strategy is one that requires high spending on advertising and consumer Promotion to build up consumer demand for a product. If the strategy is successful, consumers Will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers Will ask the producers. A good example of a pull is the heavy advertising and promotion of Childrens toys mainly on television. Consider the recent BBC promotional campaign for its New pre-school programmed the Fimbles. Aimed at two to four-year-olds, 130 episodes of Fimbles have been made and are featured everyday on digital children's channel CBeebies and BBC2.As part of the promotional campaign, the BBC has agreed a deal with toy maker FisherPrice to market products based on the show, which it hopes will emulate the popularity of the Tweenies. Under the terms of the deal, Fisher-Price will develop, manufacture and distribute a Range of Fimbles products including soft, plastic and electronic learning toys for the UK and Ireland. (iii) The combination theory is a slight part of both. You may supply a retailer with your Consumable. He or she will then offer this to a customer with incentives for shopping With them. This strategy is usually used if the distributor is hesitant to carry a product, since it gets its Required consumers without having to go to retail outlets. Car dealers often provide a good Example of a combination strategy. If you pay attention to car dealers advertising, you will often Hear them speak of cash-back offers and dealer incentives. Because sales promotion is an initiative carried out by an organization to promote a product to Ensure increase in sales so it has varied methods of promotion. Most of the time, sales Promotions are creative and original therefore providing a comprehensive list of all methods is Not possible, however some examples of the regularly used sales promotions activities are as Follows: Buy-One-Get-One-Free New Media Merchandising CRM (customer relationship management)
Free gifts Discounted prices Free samples Vouchers & coupons Joint promotions Competitions and prize draws/Cause-related or fair Finance deals Sales promotion is directed at sales staff, customers and distribution channel members which May include wholesalers, retailers etc. When targeted at consumers it is called consumer sales Promotion, when it is targeted at wholesalers and retailers it is called trade sales promotions. However by many it is considered as gimmick because of the unusual methods some marketers Use for sales promotion. All of these sales promotion strategies can be victorious. Your business may choose to use one or All of them when trading your products. When working to implement your technique, you may Also want to utilize some other methods. Allow people to try samples of your goods. Engage the Free advertising of in-store demonstrations and exhibitions. All of these can be wonderful sales Advancement strategies for your business. Sales Promotion Theory Sales promotion is giving the customer something extra, rewarding them for their behavior on this particular purchasing occasion. There are several theories which support the concept of Reward as a motivator. The conditions of sales promotion are classical and operant conditioning. Whereas classical conditioning is largely associated with advertising operant conditioning is seen As an explanation for consumer behavior in relation to sales promotion. Operant conditioning Suggests the response of the individual is likely to be affected by positive reinforcement (reward) Or negative reinforcement (punishment), although the affect is likely to cease when these Reinforcements are taken away. Edward Thorndike suggested that the law of effect, which had To do with positive and negative consequences of actions, is also relevant to sales promotion. The Law states that the consequences of behavior now will govern the consequences of that behavior in the future. In other words once a buying pattern is achieved it will continue into the future. John Watson, US psychologist and founding father of American behaviouralism, introduced the
Concept of shaping, chaining, and priming. Shaping: John Watson states shaping suggests that a final response can be explained as appearing after Preceding acts which; taken together, constitute a chain of successive approximations. Shaping breaks the desired behaviors in a series of stages and the parts are learnt in sequence. Chaining: Chaining suggests behavior emerges from sequences of actions in which the preceding action Becomes the discriminative stimulus for the final response (inducement > purchase). Priming: De Pelsmacker (2001) states, priming suggests that a short exposure to a particular stimulus can Evoke an increased drive to consume more of a product. So this all theories offer reasons why we Can motivate people to buy more by offering incentives although the continuation of these Behaviors are open to doubt. Uses of sales promotion: a) Introduce new products b) Get existing customers to buy more c) Attract new customers d) Combat competition e) Maintain sales in off season f) Increase retail inventories g) Tie in advertising & personal selling
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Chapter No.5 Objectives of project:
5.1PRIMARY OBJECTIVE
1) Effectiveness of promotion activity in increasing sales (a study done for shoppers stop). 2) To study and observe customer while purchasing apparel in shoppers stop. 3) To study various in store promotional activities at shoppers stop.
5.2 SECONDARY OBJECTIVE OF VISIT 1) To take customer feedback about the overall feel and ambience of the outlet. 2) To understand the use of technology in managing the ongoing activities in store. 3) To study the merchandise mixes in apparel category in relation to private brands. 4) To compare customers walk-ins during regular v/s week-end. 5) To calculate the average ticket size among the shoppers stop customers. 6) To understand the various products that are sold as add-on products.
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5.3 Scope of study:

1) The Indian organized retail sector is on the threshold of growth boom, i.e., 35-40 % CAGR compound annual growth rate is the anticipated growth rate expected till 2016.as per AC NELSON report. 2) The growth boom of organized retail in European countries had been meticulously studied by the Indian retail strategist. 3) The shortcoming of European retail growth boom had been eliminated and a fast and continuous retail growth strategy ad been designed so that a faster growth rate in India. 4) Management is like a coin having two sides; One is the theoretical part and second is the practical part. In the theoretical part of management we learn in our classroom from the lectures, seminars, group discussions that are arranged from time to time. 5) To know the practical aspect of management a practical training is provided to the students. The main idea behind practical training is to bring the management students face to face with the actual environment of practical management so that he/ she will be able to apply theory to practical situation before finally moving into the professional world to show the efficiency and capability.
6)
The project study focused on Shopper stop as a product and the subject is to understand the promotional strategy opted by shopper stop so that it create good image and
awareness in the mind of customer about the product. 7) In this study efforts have been made to prepare the report as realistic as possible.
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Chapter No. 6
RESEARCH METHODOLOGY
As a researcher we designed a customer questionnaire to understand the customer aspiration and need from the shoppers stop. So primary data was collected from the questionnaire and a most affective revenue increasing proposition was suggested to shoppers stop. So, non-probability convenience sampling was adopted and about 150 customers were questioned who belong to the targeted customer category of shoppers stop. Sample frame was shoppers stop customers mainly at viman nagar.
1) 2) 3) 4)
Research design Sampling design Data collection Limitation
6.1 RESEARCH DESIGN

Research design is a mapping strategy ,regarding what ,where ,when, how much by what means concerning an enquiry or research .it includes objectives, sampling, research strategy, tools and techniques for collecting the evidences , analyzing the data and reporting the findings. Definition The research design is the structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data
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6.2 NEEDS AND BENEFITS OF RESEARCH DESIGN

1) 2) 3) 4) Smooth sailing of the various research operation Advance planning of methods Organizes ideas to look for flaws and in adequacy Anticipates the clients requirement in terms of results and help in proper data analysis
6.3 TYPES OF RESEARCH DESIGN
6.3.2 DESCRIPITIVE RESEARCH

Descriptive study is a fact-finding investigation with adequate interpretation. It has focus on particular aspects or dimension of the problem studied .data are collected by using one or more appropriate methods: observation, interviewing and mailed questionnaire
CRITERIA: This method is applicable to problems, with satisfy certain criteria. 1) The problem must be describable and not arguable. 2) The data should be amendable to an accurate, objective, and if possible, quantitative assemblage for reliability and significance. 3) It should be possible to develop valid standards of comparison. 4) It should land itself to verifiable procedure for collection and analysis of data.
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6.5 SAMPLING DESIGN

The chief aim of sampling is to make an inference about an unknown parameter from a measurable sample statistics. A sample is drawn and the data collected from the sample informants are analyzed and on the basis of the result the hypothesis may be accepted or rejected. Population: People of pune city.
Sample frame: Customers of shopper stop.
Sample size: 150
6.6 TECHNIQUES OF SAMPLING CONVINENCE SAMPLING:

This is a non probability sampling. it means selecting sample units in a just hit &miss fashion .sample means selecting whatever sampling units are conveniently available.
ADVANTAGES
1) 2) 3) Cheapest and simplest Does not require list of population Does not require any statistical expertise
DATA COLLECTION:
1) PRIMARY DATA
2) SECONDARY DATA
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1) PRIMARY DATA
Primary data are those which are collected a fresh and for the first time and thus happen to be original in character. 1) 2) 3) 4) The important methods are: Observation method Questionnaire method Interview method,etc
2) SECONDARY DATA
These are sources containing data which have been collected and compiled for another purpose The secondary sources consist of readily available compendia and already compiled statistical statements and reports. Secondary data consist of not only published records and reports, but also unpublished records.
6.8 Limitations of study: Due to the following unavoidable and uncontrollable factors the factors, the result might not be accurate. Some of the problems faced while conducting the survey are as follows:-
1) The study is limited to the pune city only
2) The study period was short i.e, only for two months so an thorough study in this short period old retail growth was not possible. 3) The customers questionnaire sample size of one hundred fifty only has been use due to time limitation.
4) Only sales promotional schemes were studied in apparel section due to time constraints. INDIRA INSTITUTE OF MANAGEMENT, PUNE Page 46
5) The customers reluctance and in-accurate information was also a constraints due to which as a retail researcher we could not obtain precise information.
A majority of respondents show lack of cooperation.
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Chapter No.7 Data analysis and Data interpretation
Q1)
How often do you visit shoppers stop?
respondant
53 52
51
50 respondant 49 52
48
50
47
48
46 once in month once in week discount period
Inference: 1) 2) 3) Discounts attract customers more to the store. Old and repeat customers need some special attention through various sales promotional discounts offered by the store. Repeat customers are normally from close vicinity of retail stores. This was inferred by the study of the address details filled from the questionnaire.
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Q2) Do you find choice of product suitable here?
Yes No
102 48
respondant
120
100
80
60 102 40 48
respondant
20
0 yes No
Inference: 1) In apparel segment fashion is integral factor which affect sales. 2) Most of the customers prefer variety/choice of product is good leads to faster sales closure. 3) A better blend of branded and unbranded apparels renders a better sales closure choice for customers.
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Q3) ARE YOU AWARE OF THE VARIOUS PROMOTIONAL SCHEMES IN SHOPPERS STOP ?
Sales
8%
YES NO 92%
Inference : 1) The promotional schemes at shoppers stop are not able to allure customers for sales. 2) Other organized retail are offering better schemes and discounts to the customers. 3) Out dated schemes depicts the inflexible attitude of the decision maker, so people from sales vouching for turnover targets must get vital decision making positions at shoppers stop.
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Q4) If THE PROMOTIONAL ACTIVITIES CALLING THE ATTENTION TO NEW PRODUCTS IN SHOPPERS
STOP?
poor good Very good
62 40 38 10
77% 13% 7% 3%
Excellent
NO OF CUSTOMERS
3% 7% 13%
POOR GOOD VERY GOOD EXCELLENT 77%
Inference: 1) 2) The customers are not interested in shoppers stop discounts and offers offered. They visit shoppers stop due to other reasons such as quality proper quantity and distance of retail stores from their residing vicinity compels them to visit shoppers stop. Better customers oriented schemes might attract more customers to the stores, so a better market feed back system is suggested for better profitability.
3)
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Q5) What you purchase more from shopper stop? Mens formal Mens casual Womens apparels Mother care Watch & Perfumes
41 28 31 28 22
Respondant
22
41 Formal Casual Women's wear 28 Mother care Watches & perfume
28
31
Inference: 1) Better brand formal attract more customer for garments section of the store. 2) More variety of garments might increase the category profitability of garments. 3) The garments customers inflow into the shop is already more the only initiative the schemes formulators had to take is to convert customers enquiry to actual sales.
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Q6) why do you purchase from shopper stop?
Loyal customers Collections Due to offers Service Due to In house brand
70 21 14 11 34
Respondent
80 70 60 50 40 70 30 20 10 0 Loyal customer Collection due to offers Service Due to In house brand 21 14 11 34 Respondent
Inference: 1) The number of repeat customers are good at shoppers stop , the variety and quality had already been appreciated by the customers. 2) The customers relations management of the store is efficient; our offering had to be matched as per the aspirations of the customers. 3) In-house brands had also added value to the garment customers.
Q7) what difference you find in shopper stop from other retail outlets?
Benefits associated with card More number of In house brand Customer reach
71 42 27
Respondent
80 70 60 50 40 71 30 20 10 0 Benefits with card In house brand customer reach 42 27 Respondent
Inferences: 1) CRM benefits are better in shoppers stop in comparisons to other organized retail store around. 2) The local in-house brands add value to customers purchase for garments in the stores. 3) Few branded garments range will make garments category one of the most values adding category of the stores.
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Q8) How do you find online shopping of shoppers stop ?
Excellent Good Average Poor
10 23 49 68
Respondent
10 23 68 Excellent Good Average 49 Poor
Inference: 1) The virtual site of shoppers stop is not that effective, the customers expects more with shoppers stop web sites. 2) The customers computer operating knowledge is not good and is the quality of goods and services offered by the virtual site of shoppers stop. 3) Shoppers stop must understand the customers purchase mood and demand more closely and improve upon quality of web sites of shoppers stop.
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Q9) Do you feel Shopper stop should have some fashion consultant?
Yes No
98 52
Respondent
100 90 80 70 60 50 40 30 20 10 0 Yes No 52 98 Respondent
Inference: 1) The customers mood and choice for garment segment is not properly understood by the retail outlet merchandisers. 2) The changing choice of taste and preferences as per style of youngsters had to be understood seriously in order to enhance profitability of garment category. 3) The dynamics of garment industry is more dependent on changing tastes and preference of the customers. 4) Shoppers stop must take services of fashion assistant in garment category.
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Q10) Do you want on line feed back system for shopper stop?
Respondent
120 100 80 60 40 20 0 Yes No 38
112
Respondent
Inference: 1) A market feedback system had to be developed with in house initiative. 2) Customers feedback could create a more effective market research input which increases store productivity. 3) Garment category does not follow set rules and norms in organized retail segment. 4) So local need and aspiration of customers must be accounted to enhance stores productivity.
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Chapter No.8 Findings and Suggestions 8.1Findings 1. The spending habits of the pune residents are high
the cosmopolitan text of our city. 2. The customer preference in context to the payment option in large format store such as cash options are available with plastic money options and in order to provide convenience in spending by he customers to increase ticket size. 3. The customers sought for better shopping delight with lots of eatery points and amusements with their family members. 4. The customers are very prone to change their purchase destiny and the reasons for drifting away of customer is either for change or better product mix options available. 5. Demographically he young age segment are the most potential customer so that rigorous effort could be taken to convert them to sales closure , and call them frequently through CRM activity of shoppers stop. 6. The customers are niche customers and are choosy and quality conscious, proper visual merchandizing with clarity in message and discounts enables the intelligent creamy class to become the frequent customers. 7. The distance of large format store is inversely correlated to the distance covered by the customers to reach the retail destiny for purchase. 8. A transparent system which tells and educate the customers about all competitors in context of feature and price comparisons ; enables the customers to increase trust in to the retailer and more cross selling and increase in ticket size takes place. 9. The professional approach of sales person which educates the customer about the product and stress he customer to take its own reasons to purchase product is logically accepted by most of the customers as it quenches their intelligence.
earnings and spare liquidity to spend in
10. Better parking facility increase the footfall into a large format store. 11. Commercial vicinity of the organized retail format also increases the customer inflow into the retail outlet.
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8.2 SUGGESTION: 1. In organized retail the sales person should be well versed with the professional approach which is needed by the educated niche class of customers in which the basic information of entire product should be thoroughly understood by the customer. 2. The product feature explanation by professional sales person imparts proper and adequate knowledge about the product by the sales person educate the customer thoroghly and later on this increases the trust of customers on the retailer. 3. Proper product merchandize mix and adequate discounts offered by the retailer increases the credit worthiness of the retailers and this compels him to close sales in the store itself. 4. Visual merchandize also plays a vital role in retail operation; the message which is transmitted by visual displays should be clear, contemporary and as per the seasonality. 5. The frontal display should match with latest fashion and trends going on and all frontal accessories should change frequently in order to create variety to young and niche customers, this class looks for freshness and change frequently. 6. Better variety of products displayed in width increases cross selling of product which in turn increases footfalls to the store. 7. The changing taste and preferences also increases the customers value for the store. 8. The customer inquiry designed to be efficiently converted into prospective customers with efficient customer mood swing monitoring. 9. The critical factors responsible for sales enhancement were also taken into account for market research project. 10.A brief and critical analysis was taken into account and corrective suggestion and recommendation were given with a brief conclusion with corrective measure was submitted. 11. More number of in-house brands also increase the customer visit frequency to the store.
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Chapter No.9 Conclusion

Shoppers stop has already established its brand image in market. it has second highest customer loyalty (20 lacks loyal customer) but since shoppers stop has just open up a new store at in orbit mall (pune), so in order to increase its footfall and maintain competitive advantage over rivals it must increase visibility of store, by increasing promotion activities , like outdoor advertisement, advertisement on radio, weekends discounts or some prizes, occasion basis games etc. Shoppers stop has to maintain customer interest and awareness in front of customers to be a market leader with expansion.
1) In convenience store segment shopper stop had provided it with in front of the customer of pune city. 2) The quality of goods displayed and the product mix along with marketing mix is best in its own category for shoppers stop. 3) The inventory management of shoppers stop had increased the profitability of the store. 4) The operating capital ratio to net revenue inflow is also less in pune in comparison to other similar cities like Banglore and Ahemdabad. 5) The customer relationship management had increased the number of repeat customer in comparison to other store in vicinity of shoppers stop.
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REFERENCES
1) 2) 3) 4) 5) 6) 7) 8)
HARWARD BUSINESS REVIEW. MACKENZIE WAY BOOK. RETAIL MANAGEMENT BY SWAPNA PRADHAN. OLD SENIOR STUDENTS SUMMER INTERNSHIP REPORT AT LIBRARY. TIMES OF INDIA. GOOGLE.COM WWW.BUSINESSARTICLE.COM WWW.TEJAS-IIMB.ORG/ARTICLES
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ANNEXURE: QUESTIONNARE
NAMEAGESEXTELEPHONE NOMEMBERSHIP CARDE-MAIL-
Q1) HOW OFTEN DO YOU VISIT SHOPPERS STOP? ONCE IN A MONTH ONCE IN A WEEK DURING DISCOUNTS
Q2) DO YOU FIND CHOICE OF PRODUCT [PRODUCT MIX] SUITABLE HERE? YES NO
Q3) ARE YOU AWARE OF THE VARIOUS PROMOTIONAL SCHEMES IN SHOPPERS STOP? YES NO
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Q4) IF THE PROMOTIONAL ACTIVITIES CALLING THE ATTENTION TOO THE NEW PRODUCT IN SHOPPERS STOP?
GOOD VERY GOOD EXCELLENT
Q5) WHAT DO YOU PURCHASE MORE FROM SHOPPERS STOP? MENS FORMAL MENS CASUAL WOMENS APPARELS MOTHER CARE WATCH & PERFUMES Q6) WHY DO YOU PURCHASE FROM SHOPPERS STOP?
LOYAL CUSTOMER COLLECTION DUE TO OFFERS SERVICE DUE TO IN-HOUSE BRAND Q7) WHAT DIIFERENCE YOU FIND IN SHOPPERS STOP FROM OTHER RETAIL OUTLETS?
BENEFITS ASSOCIATED WITH CARD MORE NO. OF IN-HOUSE BRAND CUSTOMER REACH
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Q8) HOW DO YOU FIND ONLINE SHOPPING OF SHOPPERS STOP?
EXCELLENT GOOD AVERAGE POOR Q9) DO YOU FEEL SHOPPERS STOP SHOULD HAVE SOME FASHION CONSULANT?
YES NO
Q10) DO YOU WANT ON-LINE FEED BACK SYSTEM FOR SHOPPERS STOP?
YES NO
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A PROJECT REPORT ON

Roll No. 0057

INDIRA INSTITUTE OF MANAGEMENT TATHAWADE, PUNE 41103

INDIRA INSTITUTE OF MANAGEMENT, PUNE

INDIRA INSTITUTE OF MANAGEMENT, PUNE

PROJECT TITTLE: Effectiveness of promotion in increasing sales (a study done for

INDUSTRY: Retail COMPANY: SHOPPERS STOP OBJECTIVE: 1) PRIMARY OBJECTIVE

INDIRA INSTITUTE OF MANAGEMENT, PUNE

SAMPLE SIZE: 150

INDIRA INSTITUTE OF MANAGEMENT, PUNE

INDIRA INSTITUTE OF MANAGEMENT, PUNE

LIMITATIONS OF THE STUDY:

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Chapter 3 Chapter 4 Chapter 5

17-20 21-40 41-42

8.1Findings and suggestion

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Chapter No. 1 1.1 INTRODUCTION

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Chapter No. 2 2.1 SIZE OFINDIAN RETAIL INDUSTRY

2.2 GROWTH TREANDS:

INDIRA INSTITUTE OF MANAGEMENT, PUNE

2.3 MAJOR PLAYERS:

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Predictable mall distribution space in India:

30% Delhi Mumbai

Hydrabad pune Bangalore Tier two cities

INDIRA INSTITUTE OF MANAGEMENT, PUNE

GOVERNMENT SUPPORT AND POLICIES:

Entry of large players: stiff opposition from Left Parties

The Actual Scene

The Ruling UPA government's outlook

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Chapter No.3 COMPANY AND PRODUCT PROFILE:

INDIRA INSTITUTE OF MANAGEMENT, PUNE

INDIRA INSTITUTE OF MANAGEMENT, PUNE

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Chapter no.4 Literature review

4.1 RETAIL PROMOTIONS AND EFFECTIVENESS

standing insert, on-shelf couponing, on-line couponing, mobile couponing among

INDIRA INSTITUTE OF MANAGEMENT, PUNE

INDIRA INSTITUTE OF MANAGEMENT, PUNE

On-line/e-mail coupon Mobile coupon

What retailers should know before launching a promotion?

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Benefits of a Professional High Impact Retail Sales Program

The following objectives can be reached with a Professional Promotion:

4.4 Apparel retailers ride promotion bandwagon to boost sales

INDIRA INSTITUTE OF MANAGEMENT, PUNE

2) Recent Vodafone tie up

INDIRA INSTITUTE OF MANAGEMENT, PUNE

4.5 The theories of Sales Promotion

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Chapter No.5 Objectives of project:

INDIRA INSTITUTE OF MANAGEMENT, PUNE

5.3 Scope of study:

INDIRA INSTITUTE OF MANAGEMENT, PUNE

Research design Sampling design Data collection Limitation

6.1 RESEARCH DESIGN

INDIRA INSTITUTE OF MANAGEMENT, PUNE

6.2 NEEDS AND BENEFITS OF RESEARCH DESIGN

6.3 TYPES OF RESEARCH DESIGN

6.3.2 DESCRIPITIVE RESEARCH