A Presentation On Sales Promotion

A Presentation on Sales Promotion By, Abhishek Singh PGDM Vth Disha School Of Management 1

Contents 

What is Sales Promotion?



Objectives, Benefits and types of Sales Promotion



Difference between SP and Advertisement, Personal selling.

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Retail Sector: Introduction

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Big Bazaar: Introduction

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History, Key Persons, Growth

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Sales Promotion in Retail

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Sales promotion in Big Bazaar

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Conclusion 2

Sales Promotion In tro d u ctio n

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.

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Cont… 

D e fin itio n

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. 

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Objectives of Sales Promotion 1.Introduction of new products to the market through educating people 2.Attracting new customers by offering attractive gifts. 3.Increase Sales through slack season 4.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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Importance From the point of view of manufacturers it 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 customers the 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. 7 

Types of sales promotion Customer Based

Trade Based





Samples

Price-Off

Coupons

Allowance

Discount or price off Cash Refund offers

Free Goods: Store administration

(Rebates) Price Packs Premiums or Gift Offer Prizes (Contests, Sweepstakes, Games) Exchange offer Fair Exhibition/Events

Trade Shows Trade Incentives Contests



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Differen ce Advertisement

(e.g. Airtel)

Sales Promotion

By using a variety of persuasive appeals, it offers Besides giving reasons in the form of different reasons to buy a product or service. appeals, they offer incentive to the consumers to e.g. Good Network, Promises and Delivers. buy the product or service now. e.g. Extra balance, tariff, Free calling. Appeals are emotional or functional in nature. Appeals are rational e.g. endorsed by Madhvan & Vidya Balan, Shreyas Talpade, new ad of Shahrukh. 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 Direct in approach to induce persuading customers to buy a consumers to buy a product or product or service. service 9

Indian Retail scnerio

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Introduction Over 12 M illi Outlets in on India

Organized

Retail < 3

Set to gro w Organized Retail exp e

Unorganiz ed Retail

%

to 8-10% b y 20 10

cted to be

around Rs

.110,000 C r(

USD 25 b) by

2 01 0

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Retail In India Ø The Indian retail industry accounts for 10% of GDP and 8% of employment. Ø Ø India is being touted as the next big retail destination with an average three year compounded annual growth rate of 46.64%. Ø Ø 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 India Located 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’ 14

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.  15 

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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HIERARCHY

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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), 22

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. 26

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