PRESENTATION

ON

SALES PROMOTION STRATEGY USED IN RETAIL INDUSTRY

(Comparative Analysis of Big-Bazaar & Reliance Fresh)
UNDER THE GUIDENCE OF
PROF.VIRENDRA PATIL
(Marketing)
(2011-2013)
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF
Master in Management Studies (MMS)
(UNIVERSITY OF MUMBAI)

SHIVAJIRAO .S JONDHALE INSTITUTE OF MANAGEMENT SCIENCE AND RESEARCH

ASANGAON THANE

OBJECTIVES OF THE STUDY

To study the different sales promotion strategies.

To identifying the effect of sales promotion strategy in retail industry.

To understand how a sales promotion strategy help attract new consumer.

To know how a sales promotion strategy help to face the competition effectively.

To find the most effective tool of sales promotion.

To suggest for better management of sales promotion strategy in retail industry.

SCOPE OF STUDY

The important sales promotion strategy can provide vital intelligence about what the
retailer has to do, to increase customer footage to their outlet.

This information critical is effective to understand effect of sales promotion strategy on

the buying behavior of the consumer.

This study is helpful to those employees who already work in that industry and new
comers, management trainee & for future reference.

Our study can be useful by other retail business in similar industries.

INDIAN RETAIL INDUSTRY

Size of the Industry

By 2015 the Organized Retail Sector in India is expected to triple its size. The food
and grocery retail sector is expected to multiply five times in the same time frame.
The market size of Indian retail industry is about US $312 billion

Geographical distribution

In all the major Cities of the country

Output per annum

With growing market demand, the industry is expected to grow at a pace of 25-30%
annually.

Percentage in world market

Today India is the fifth largest in the world in terms of Retail Industry

Market Capitalization

In 2010 the retail trade accounts for 12 % of the country's GDP. The present value
of the Indian retail market is estimated to be around Rs. 12, 00,000 Cr ($270 billion)
and the annual growth rate is 5.7%.

MAJOR FOREIGN COMPANIES

Wal-Mart Stores Inc has a cash-and-carry operation with Indian partner Bharti Enterprises, the
parent of leading mobile provider Bharti Airtel, and will add 12-15 new cash-and-carry stores
this year to its 17 existing stores.

Tesco, Britain's largest retailer, has a tie-up with Trent's Star Bazaar hypermarket chain. Tesco
is also looking to enter the wholesale market through the tie-up.

Germany's Metro AG operates 11 wholesale stores in India. The company plans to open 5
cash-and-carry stores every year.

Carrefour has 2 cash-and-carry stores in India. The world's No 2 retailer has been seeking a
local partner to enter the hyper or supermarket sectors.

LOCAL COMPANIES

Pantaloon Retail, India's largest listed retailer and part of the Future Group, runs
apparel and electronics stores under its lifestyle brands Central, E-Zone, Hometown.
Future also operates the Big Bazaar hypermarket chain and supermarket brand Food
Bazaar.

Second-ranked Reliance Retail is part of Reliance Industries, India's largest listed

group headed by Mukesh Ambani, India's richest man.

Shoppers Stop, part of the K Raheja Group which operates in real estate, has
Trent, part of the sprawling Tata Group, operates 106 stores across formats and runs
the Westside range of apparel stores, under Star Bazaar.

COMPANY PROFILE
BIG-BAZAAR

Type

Subsidiary of Pantaloon Group

Founded

2001

Headquarters

Jogeshwari, Mumbai, India

Industry

Retail

Products

Department store, Grocery store

Owner

Kishore Biyani

Parent

Pantaloon Group

Slogan

Is se sasta aur accha kahin nahin

RELIANCE FRESH

Type

Subsidiary of Reliance Industries Limited

Headquarters

Ghansoli , Mumbai - 400701, India

Industry

Retail

Products

Department store, Grocery etc

Owner

Mukesh D.Ambani

Parent

Reliance Industries

INTRODUCTION TO TOPIC

DEFINATION

Sales promotion includes incentive-offering and interest-creating activities which

are generally short-term marketing events other than advertising, personal selling,
publicity and direct marketing. (A.H.R. Delons)

The purpose of sales promotion is to stimulate, motivate and influence the

purchase and other desired behavioral responses of the firms customers.
(W.Q. Kelly)

REASONS FOR RAPID GROWTH OF SALES PROMOTION

a) Increasing Competition

b) Sales Promotions Generally Create An Immediate Positive

Impact On Sales

c) Consumer Acceptance

d) Expectations Of Price Decrease

Cont.
e) Advertising Has Become More Expensive And Less
Effective

f) Emphasis On Sales Volumes

g) Impulse Buying Is Increasing
h) Excess Stocks

ADVANTAGES OF SALES PROMOTION

Price discrimination

Effect on consumer Behaviour (e.g With every 500g pack of Tang, you get a free
Tang glass. Offer valid only till stocks last. )

Effect on trade Behaviour (e.g Retailer promotion: Buy Cadburys products worth
Rs.3000/- and get any 30 chocolates worth Rs.5 each free.
e.g Buy a box of Munch and get 1 Munch free )

Techniques of sales promotions

Store Demonstration
Coupons
Price-off-offer
Samples
Money Refund Offer
Extra Product
Gifts

There are three types of sales promotion strategies

Push Strategy

Pull Strategy

A pull strategy is appropriate when

The product demand as high.

It is possible to differentiate the product on the basis of real or emotional features,

Brand consumers show high degree of involvement in the product purchase,

There is reasonably highly brand loyalty and consumers make brand choice decision
before they go to the store.

PULL AND PUSH

A combination sales promotion strategy is just that; it is a combination of a

push and a pull strategy. It focuses both on the distributor as well as the
consumers, targeting both parties directly. It offers consumer incentives side
by side with dealer discounts.

COMPARITIVE ANALYSIS

BIG BAZAAR

RELIANCE FRESH

PRICE

Big Bazaar prices are very low Reliance Fresh prices are not low because
because its adopt the low price they give whatever is market price.
marketing strategy.
SERVICE

Big Bazaar services are not quite Reliance Fresh does not face these kind of
good as billing problem due to crowd. problems as its not overcrowded.
PRODUCT VARIETY

Big Bazaar has lots of variety in Reliance Fresh have less varieties as it is
every category of products. In Big smaller than Big Bazaar
Bazaar people can find almost
everything.

Cont.

CONVENIENCE

Big Bazaar has always worked in cheap Reliance Fresh also works in low cost location
location so that it is very convenient for but it is less popular in comparison of Big
the people to go to the Big Bazaar rather Bazaar.
than going outer of the city.
SHOPPING EXPERIENCE
In Big Bazaar people can buy the
maximum variety of products of every
category under one roof helping in
attracting customer and their family to
shop together and enjoy the shopping
experience.

Reliance Fresh also provides the products

under one roof but there is less varieties so that
customers dont attract so they can not enjoy
their shoppings.

PRODUCT QUALITY
The product quality is good in Big Bazaar The product quality is also good in Reliance
because people can find cheap and best Fresh but the prices are slightly higher.
things in Big Bazaar.

COMPARATIVE STUDY OF SALES PROMOTION STRATEGY USED BY BIG-BAZAR AND RELIANCE FRESH

Type

Reliance Fresh

Big-Bazaar

Mode

Mode

Special Days

Saturday And Sunday

Wednesday

Customer can take new in

exchange of old item

Exchange offer

Premium and Gifts

Premiums in the form of Bill

Busters on the purchase of a fixed
amount every week
E.G. Pickle Set (set of 4) is free
with the purchase of Rs.999/-

Cont..
Premium and Gifts Premiums in the form of Bill Concentrate on bundling
Busters on the purchase of a offer
fixed amount every week
E.G. Pickle Set (set of 4) is
free with the purchase of
Rs.999/Sampling
Eg .free samples of Pick
Distribution
pickle was distributed which
was test merchandise
Rebates ,Discount

On MRP of certain products

On MRP of certain products

Offers

BOGO [Buy One Get One]

BXGY Buy X and Get Y

BOGO [Buy One Get One]

BXGY Buy X and Get Y

POP Display

Point of purchase display are Point of purchase display

used to reach to display the are used to reach to
benefit of product.
display the benefit of
product.

Research Methodology

The system of collecting data for research projects is known as research

methodology. The data may be collected for either theoretical or practical
research

for

example

management

research

may

be

strategically

conceptualized along with operational planning methods and change

management.
Data Collection

There are two main sources for collecting data. These are :-

1. Primary Data.

The Primary data has been collected through questionnaire

Cont.

2. Secondary Data.
Data has also been collected through
internet using various websites such
as:-

- www.relianceretail.com
http://www.pantaloon.com/bigbazaar.htm
http://en.wikipedia.org/wiki/Big_Bazaar
www. Future bazaar.com
www. Pantaloon Retail (India) Limited.htm

DATA ANALYSIS AND

INTERPRETATION

RETAILER ORIENTED

1) Is your Sales promotion Strategy is customer

Yes
No
oriented?
100

100%

Is your sales promotion strategy is customer orianted0

No

Interpretation

As per our survey100% Retailers{both BigBazaar (50sample) and Reliance Fresh

(50sample)} said that they use Sales
promotion Strategy are customer oriented.

2) Does customer really satisfied with your sales

promotion activity in your BIG-BAZAAR ?
YES

NO

70%

30%

0.8

0.7

0.6

0.5

Axis Title

0.4

0.3

0.2

0.1

Yes

No

Interpretation
As per our survey Retailer (50 SAMPLE SIZE) says that 70% of customer (35) are
satisfied with your sales promotion activity and remaining 30% (15)are not. So Retailers
has to Find some other new way to satisfy remaining 30% unsatisfied customer.

3) Does customer really satisfied with your sales promotion activity in your RELIANCE FRESH ?

YES -73%
NO - 27%

NO

YES

INTERPRETATION
As per our survey Retailer (50 SAMPLE SIZE) says that 73% of customer (37)
are satisfied with your sales promotion activity and remaining 27% (13) are
not. So Retailers has to .Thus there is only Variance of only 3% between this
two retailer for
promotion strategy.

Satisfaction and Dissatisfaction of customer for sales

4) Do customers look for various schemes in the product?(Both BIG

BAZAAR AND RELIANCE FRESH)(Sample size of 100)
Promotional Schemes
Respondents
Coupons
3
Price Off
45
Scratch Cards
2
Lucky Draws
8
Bundling Offer
22
Extra Quantity

20

45
40
35
30
25
Axis Title
20
15
10
5
0

Coupons

Price Off

Scratch Cards

Lucky Draws

Bundling Offer Extra Quantity

Interpretation
From the above diagram we come to know that PRICE-OFF is
most preferable Sales promotion strategy With 45% Followed
by Bundling and Extra Quantity22 % &20% and the least
preferable is Scratch Card & Coupons which is 2% &3%.

5) Which sales promotion Strategy you use most? A)

(BIG-BAZAAR)
1

Very Low

Very High

Promotional
Schemes
Coupons
Price Off
Scratch
Cards
Lucky Draws
Bundling
Offer
Extra
Quantity

Respondents

2
4
1
2
5
5

Extra Quantity

Bundling Offer
2

Lucky Draws

Scratch Cards

Price Off

Coupons

Interpretation
From the above Diagram we come to know that in Big Bazaar
Retailer Most concentrate on

Extra quantity And Bundling To

which they had given rating of point 5 to each And least is

scratch card to which they had given only 1 point.

7) On which category customer attract more?

A) IN BIG-BIZAAR (50 SAMPLE)
Promotional Schemes

Respondents

FMCG
Apparels
Stationary
luggage
Kids Product
Consumer Durable

15
12
1
2
10
10

Consumer Durable; 10
FMCG; 15

Kids Product; 10
luggage; 2
Stationary; 1

Apparels; 12

Cont..

Interpretation

We can see from the figer that the category to which customer get attract
more is FMCG Which is 15 CUSTOMER OUT OF EVERY 50 Followed
by Apparels which is 12 And the least attract segment is stationary which is
only 1 out of every 50 footage.

8) On which category customer attract more?

IN Reliance Fresh (OUT OF 50 SAMPLE)

Promotion Responden
al Schemes
ts

Electronic; 9

Vegetable

10

Kids
Product

Fruits

10
Kids Product; 4

Apparels; 7

FMCG

10

Apparels

Electronic

Vegetable; 10

Fruits; 10
FMCG; 10

Cont..
Interpretation
We can see from the Digram that the category to
which customer get attract more is vegetable ,FMCG,
FRUITS Which is 10 CUSTOMER EACH OUT OF EVERY
50 Followed by Electronic which is 9 And the least
attract segment is kids product which is only 4 out of
every 50 footage.

Customer Oriented

1) How frequently do you visit to Big-Bazaar or Reliance Fresh?(Out of 50 Sample

Each)
How frequently do you
visit retail outlet
Big-Bazaar

Daily

Once in Week

Twice in a week

Once in months

20

19

10

18

22

Reliance Fresh

22
20
18

19

10
8

Cont..
Interpretation
From the above Diagram we come to know that 20 customer
go once in week in Big Bazaar while only 18 in Reliance out
of 50 in each, and 19 Twice in week in BIG- Bazaar 22 in
Reliance Fresh, and 10 once in month & 8 once in month in
Big Bazaar And Reliance Fresh.

2)What do you like the most at Big-Bazaar?(out of 50 sample)

what do you like most

Price up to

Various option

Display of

about Reliance/Big

satisfaction

Available to

Merchandise

28

choose
15

Bazaar

Various option Available to choose; 7

Price up to satisfaction; 15

what do you like most about Reliance/Big Bazar; 28

Cont

Interpretation

From the above diagram we can see that the customer is mostly attracted
by the Price Factor that is 28 customer out of 50 sample which is more then
50% followed by various option available that is 15 customer out of
50sample and only 7attracted by Display of merchandise

3) What do you like the most at Reliance Fresh?(out of 50 sample)

what do you like most
about Reliance/Big Bazar

Price up to
satisfaction
25

Various option
Available to
choose
13

Display of
Merchandise

Various option Available to choose; 12

what do you like most about Reliance/Big Bazar; 25

Price up to satisfaction; 13

12

Cont..

Interpretation

From the above fig. we come to know that 25 that is 50% of customer are
attract to price factor and only 13 out o f 50 sample are attract to option
available but in big bazaar it is 15 customer out of 50sample that is it is 2
more ,and customer are more attract to display in merchandise it is 12 in
Reliance Fresh where it was only 7 in Big-Bazaar which is 5 customer
more.

4) Do you consider promotional schemes while visiting Big-Bazaar?(OUT OF 50 SAMPLE)

Particulars
Yes
No

Respondent
36
14

40

35

30

25

Axis Title

20

15

10

Yes

No

Cont

Interpretation
Thus from the above Table and Diagram we come to know that
36 Customer Look for the promotional schemes while visiting
a BIG-BAZAAR And 14 does not look for the any scheme.

5) Do you consider promotional schemes while visiting RELIANCE

FRESH(OUT OF 50 SAMPLE)
Particulars
Yes
No

Respondent
30
20

30

25

20
Axis Title
15

10

Yes

No

Cont..
Interpretation
Thus from the above Table and
Diagram we come to know that 30
Customer Look for the promotional
schemes while visiting a RELIANCE
FRESH And 20 does not look for the
any scheme.

6)How does you compare Reliance Fresh with Big -Bazaar?

How does you compare

reliance Fresh with BigBazaar
Biz-Bazaar
Reliance Fresh

Price

Availability of

Customer

Factor

Product

Service

25

18

23

17

10

25
23

18

17

10
7

Price Factor

Availability of Product

Customer Service

Cont..

Interpretation

From the above diagram we come to know that customer compare both
retail outlet on Price basis by25 and 23in Big-Bazaar and Reliance Fresh
out of 50sample, 18 and 17are comparing both retail out let on the basis of
Availability of product. and only 7 and 10customer compare on the basis of
customer Service out of 50 customer each outlet

7) Do you feel easy to find out the product in BIG-BAZAAR?

Yes
48

Do you feel easy

to find out the
product

No
2

48

2
Do you feel easy to find out the product
Yes
No

Interpretation
From the above table and figer we can see that 48 customer can easily find out the
product and only 2 were not.(OUT OF 50 SAMPLE)

8) Do you feel easy to find out the product in RELIANCE FRESH?

Do you feel
easy to find out
the product

Yes
49

No
1

49
50
45
40
35
30
25
20
15
10
1

5
0
Do you feel easy to find out the product

Yes

No

Interpretation
From the above table and figer we can see that 49 customer can easily find out the product
and only 1 were not.(OUT OF 50 SAMPLE)

9). How do you feel about the customer service of

Reliance Fresh?

How do you feel

Customer Service of

Average
24

Good
11

Excellent
15

Reliance Fresh

24

15
11

How do you feel Customer Service of Reliance Fresh

Good

Interpretation
From the Above Diagram we come to know that 24 people has given average Rating to
Customer Service in Reliance , Followed by 15 Excellent and 11 as Good.

10) How do you feel about the customer service of BIG BAZAAR? (out of 50 sample
size)
How do you feel Customer Service
of Reliance Fresh

30
25
20
15
10
5
0

Average
30

Good
15

Excellent
5

30
15
5

Interpretation
From the Above Diagram we come to know that 30 people has given average Rating to
Customer Service in Reliance , Followed by 15 Good and 5 as Excellent.

Observation & Finding

Temporary price reductions (price off) substantially increase

sales
Sales Promotion leads to brand substitution with the product
category
Sales Promotion leads to purchase acceleration/stockpiling
effects
Sales Promotions affect sales in complementary and
competitive categories

LIMITATION

It is the time constrains.

Due to other work load during the period it could be not be possible to explore
more area concern pertaining to study.

The study was conducted to limited area on THANE Region only.

Respondent may give biased answer due to some lack of information about other
brands.

Findings of the study are based on the assumption that the respondents have given
correct information

Conclusion

We have noted that these kind of promotional tools are useful for short
term increase in sales and to induce first trial. These types of promotional
schemes should be consistent and changed from time to time depending
upon season and competitors schemes.

With the Increasing number of supermarket, the branded

packaged goods work as silent sales person. So in such
stores, sales promotion plays a more effective role in
stimulating consumers demands

Thus proper use of sales promotion tools help to achieve the objective of
organization.

Source

BOOKS
A. C.R.Kothari, Research Methodology methods & techniques,New Age International(p)ltd.publishers,2nd edition, page no
95 ,96 102.
B. Philip Kotler, Marketing Management, 13th edition, Pearson education Asia Publication,page no.355 to 356.

. Internet
A. http://www.ril.com/html/aboutus/about_brands.html
B. www.reliance fresh.com
C. www.Future bazaar.co
D. www.Big-bazaar. Com
E. Study_of_Consumer_Oriented_Sales_Promotion_in_FMCG.zip - ZIP archive, unpacked size 574,464 bytes
F. FutureBazaar.com, 2010. Future Bazaar India Ltd. [Online] Available at: http://bigbazaar.futurebazaar.com

[Accessed 24 March 2011].

G. Kumar, V., 2010. Promotional Strategy of Big Bazaar & Maintaining the image in Retailing. [Online] Available at:

http://www.skylinecollege.com/blog/dissertation/promotional-strategy-of-big-bazaar-maintaining-the-image-inretailing [Accessed 19 March 2011].