Effect of sales promotion schemes on pizzas and their buying behaviour

We tried to understand the perceptions of consumers regarding sales promotion activities to gauge the effectiveness of these activities. Widespread usage of sales promotion activities in Fast Moving Consumer Goods (FMCG) sector makes it imperative that manufacturers take into account consumer perceptions before planning such programs. In this research paper, we attempt to examine the nature of sales promotion activities in toilet soap category in India, and get an insight into consumer perceptions of these activities. The topic for this project is to conduct a survey to identify the sales promotion schemes used by the various pizza joints and their impact on the buying behavior of the customers. We have designed a questionnaire on the basis of the sales promotion schemes that the can change the customers behavior in the other brands vis--vis favorite brand. The data so obtained thoroughly to come to a logical conclusion. To check for the intergrity of the answers a set of questions are asked about the smartness of the deal that the customer has done by taking one of the sales promotion scheme. We have also identified certain limitations which we encountered during this project. Companies usually plan these activities with inward looking view. Hence we feel that it would be useful to understand the perceptions of consumers and retailers regarding sales promotion activities to improve the effectiveness of these activities. Introduction The major players in India are Pizza Corner India, Dominos Pizza India Ltd. , Pizza Hut and Smokin Joes. Pizza Corner, which opened its first dine-in outlet in 1997 in Chennai, operates mainly in North and South India. The New Delhi-based companys stores are a mix of delivery-carryout operations and dine-in sites with family-oriented rooms. Pizza Corner India, which owns the Chennai-based Pizza Corner chain, some years ago had a bash to celebrate the sale of '100 acres' of pizza (approximately 1.5 million) ever since it started operations in this city about 8-10 years ago. Smokin Joes, another pizza company launched in India in 1993, is more than holding its own in what has become a battlefield for the ready-to-eat pizza sector. Not only has it won hard-core loyalty from its clientele, its garnered the distinction of being the only pizza company to be profitable in the segment almost from its founding. International brands like Dominos Pizza and Pizza Hut (the most recent entrant into the Indian market) wont release sales figures, but representatives of both concede that their companies dont expect to break even for at least a few years. The high cost of commercial space in large cities has Indian pizza chains operating in stores with very limited dining areas. Consequently, lower overhead associated with building delivery-carryout stores has made that design option increasingly attractive. Currently, however, Pizza Hut views the dine-in option a winner. According to Marker, 70 percent of the customers drawn to Pizza Huts eat. Delivery accounts for nearly 20 percent of sales, while carryout consumes the rest. The opposite is true for Smokin Joes, where "more than 80 percent of sales come from home deliveries and take-aways at most of our outlets. Pizza Corner, which opened its first dine-in outlet in 1997 in Chennai, operates mainly in North and South India. The New Delhi-based companys stores are a mix of delivery-carryout operations and dine-in sites with family-oriented rooms. Smokin Joes 21 outlets in Mumbai, Pune and Nashik, however, have an aggregate turnover of Rs. 100 million (U.S. $2 million), spend 5 percent of that on advertising and promotion, and still remain profitable. Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has captured a dominant and significant share of the pizza market and has maintained an impressive

growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets across 24 cities in India; and employed nearly 4,000 people by end of 2004. Pizza Hut is believed to have close to 50 per cent market share of the organized pizza-retailing segment in India. Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious community, whose members prefer not to eat at places where meat is served.