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A Presentation on Sales Promotion

By,Abhishek SinghPGDM Vth Disha School Of Management

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Contents • What is Sales Promotion?

• Objectives, Benefits and types of Sales Promotion

• Difference between SP and Advertisement, Personal selling.

• Retail Sector: Introduction

• Big Bazaar: Introduction

• History, Key Persons, Growth

• Sales Promotion in Retail

• Sales promotion in Big Bazaar

• Conclusion

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Sales Promotion

Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers of the trade.

Sales Promotion is an important method of promotion which supplements personal selling and advertising effects.

Introduction

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Cont…

According to AMA:-"Sales promotion includes marketing activities, other

than personal selling, advertising such as displays, shows and expositions, demonstrations and various non-recurring selling efforts not in the ordinary routine.“

Whereas advertising gives a reason to buy, SP gives an incentive to buy.

Definition

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Objectives of Sales Promotion1. Introduction of new products to the market through

educating people2. Attracting new customers by offering attractive gifts.3. Increase Sales through slack season4. Create goodwill among the present as well as

prospective customers.5. create good public image of the product and the firm.

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ImportanceFrom the point of view of manufacturersit helps to increase sales in a competitive market and

thus, increases profits;it helps to introduce new products in the market by

drawing the attention of potential customers;Existing stocks can be quickly disposed off;

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Cont…From the point of view of consumers the consumer gets the product at a cheaper rate;it gives financial benefit to the customersthe consumer gets all information about the quality,

features and uses of different products;certain schemes like money back offer creates confidence

in the mind of customers about the quality of goods;it helps to raise the standard of living of people. By

exchanging their old items they can use latest items available in the market.

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Types of sales promotion

Customer Based Trade Based

Samples Coupons Discount or price off Cash Refund offers (Rebates) Price Packs Premiums or Gift Offer Prizes (Contests,

Sweepstakes, Games) Exchange offer Fair Exhibition/Events

Price-OffAllowanceFree Goods:Store administrationTrade Shows Trade Incentives Contests

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DifferenceAdvertisement Sales Promotion

By using a variety of persuasive appeals, it offers reasons to buy a product or service.

e.g. Good Network, Promises and Delivers.

Besides giving reasons in the form of different appeals, they offer incentive to the consumers

to buy the product or service now.e.g. Extra balance, tariff, Free calling.

Appeals are emotional or functional in nature.e.g. endorsed by Madhvan & Vidya Balan,

Shreyas Talpade, new ad of Shahrukh.

Appeals are rational

It justifies whatever it says.

Time-frame is long term. Time frame is short term.

The primary objective is to create an enduring brand image.

To get sales quickly or to induce trial.

Indirect and subtle approach towards persuading customers to buy a product or

service.

Direct in approach to induce consumers to buy a product or service

(e.g. Airtel)

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Indian Retail scnerio

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Introduction

Unorganized Retail

Organized Retail < 3%

Over 12 Million Outlets in India

Organized Retail expected to be around Rs.110,000 Cr(USD 25 b) by 2010

Set to grow to 8-10% by 2010

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Retail In IndiaThe Indian retail industry accounts for 10% of GDP and

8% of employment.

India is being touted as the next big retail destination with an average three year compounded annual growth rate of 46.64%.

The Indian economy is poised to take the third position in the world in terms of Purchasing Power Parity by the year 2010

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ua

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Introduction About Big Bazaar Hypermarket

Chain of Departmental Stores

Outlet 100 outlets in IndiaLocated in 70 Cities

Parent group Pantaloon Retail Group (PRIL)Subsidiary of Future Group

Owner Kishore Biyani

Founded 2001

Headquarter Jogeshwari, Mumbai

Industry Retail

Website www.bigbazar.com

Tag Line ‘is se sasta aur achha kahin nahi’

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Brief History• The hypermarket chain was introduced in India in 2001 by

Pantaloon Retail(India) Limited • The first store in Kolkata • Pantaloon retail India Ltd was incorporated as Manz Wear

private Ltd in the year 1987.• It became a public limited company in 1991 and was

renamed Pantaloon Fashion Limited and then Pantaloon retail Ltd in 1999

• The management was aware that in retail size mattered .• The targeted large Indian middle class market waiting to

tapped.

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Big Bazaar – the discount store was launched in the year 2001, to meet the aspirations of the middle class. In the span of two years, it has added a Food Bazaar and Gold Bazaar to its range of offering

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HIERARCHYFUTURE GROUP

CAPITAL BRANDS SPACE RETAILSLIFE

STYLES RETAILING

VALUE

RETAILING VENTURE FASHION STATION

MEDIA LOGISTICS

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Sales Promotion

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Sales promotions The main idea behind every effort is to make a bulk

purchase “Saal ke sabse saste 3 din”

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Hafte ka sabse sasta din “Wednesday bazaar”For generating sale apart from weekends.

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Exchange Offers “Junk swap offer”It’s a unique offer which only few companies adopt.

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Junk swap offer The customer can bring anything old, such as newspaper, and

get coupons issued in exchange of the junk. The customer can redeem the coupons before the due date on the condition that he/she shops four times the value of the coupon.

The prices fixed by Big Bazaar are: clothes (Rs 200 per kg), newspaper (Rs 25 per kg), plastics/utensils/leather goods (Rs. 75 per kg), footwear/luggage (Rs. 100 per kg), Pet/beer bottles (Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75 per kg) and others (Rs 20 per kg).

"This offer will help the housewife clean out the junk while getting a good value for it," says Mr. Sanjeev Agarwal, President (Marketing), Pantaloon Retail (India) Ltd.

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Latest Promotion technique in Diwali is “Gift Idea 2009” It comes under Premium or gift offers, Seasonal offers to

attract more customers

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Price packs (BUNDLING)

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• Price packs are among the most essential sales promotional tool of Big Bazaar.

• FUTURE CARD (Discount Up to 3%)• SHAKTI CARD – for the regular customers, to give them

extra wait age for their loyalty towards Big Bazaar.

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Conclusion In the present era of competition Sales promotion is the

vital part of promotional mix it helps advertisement and personnel selling efforts as well as it helps at point of purchase. Almost all the techniques are used in retail sector and it supports new product and existing product to survive in the market.

Big Bazaar; as it is a hypermarket, to change Indian customers perception it uses traditional as well as innovative types of SP like Junk Swap Offer.

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