A

GRAND PROJECT REPORT

ON

Gopal Group
A grand Project report submitted in Partial Fulfillment of award of MBA Degree

PROJECT GUIDE:
PROF. SHARIF MEMON PROF. BHARGAV MODI

SUBMITTED BY:
VISHAL PATEL (08077) JITENDRA RAJAI (08080) SUBMITTED TO:

N.R.INSTITUTE OF BUSINESS MANAGEMENT AHMEDABAD

This is to certify that Mr. Vishal Patel and Mr. Jitendra Rajai the students of MBA 2nd year of N.R. Institute of Business Management, Ahmedabad have completed their Grand Project Gopal Group in the year 2008-2010 in partial fulfillment of Gujarat University requirements for the award of the degree of Master of Business Administration.

Director Prof. Dr. Hitesh Ruparel

Grand Project Guide Prof Sharif Memon Prof Bhargav Modi

Date:

PREFACE
In this age of globalization hyper competition has become a regular feature. Today the markets are no less then battlegrounds and one has to strive very hard for survival and growth. Due to very rapid industrialization all over the world the demand for the managerial personnel and the administrative personnel has increased. The perfect study of Management involves both the theoretical as well as practical aspects. To survive in this highly competitive market Practical Knowledge is as relevant as the Theoretical. The significance of MBA Degree is that the Theoretical aspects, which a student learns throughout the year in the class sessions, can be practically applied through different projects, which one undertakes. Keeping in tune with this doctrine, we have tried to apply theoretical aspects through out the project, which we learned under the course of management. In this project more emphasize given to the various tools of sales promotion and its impact on consumers buying decisions. Actually in recent trend to some extent this technique also become victim of clutter, even though it can be eliminated by generating innovative and more attractive tools to lure the customers. Now a day most of the FMCG companies considering sales promotion as an important part of their marketing strategy. From the analysis of survey it becomes clear that consumers do response to the sales promotion campaign, but there are customers who strongly prefer to stick to brand name.

GLS NRIBM Gujarat University Ahmedabad . 3

Jitendra Rajai Vishal Patel

ACKNOWLEDGEMENT

Every study requires a guidance of someone who is working in that field. Firstly we would like to thank Director Sir Dr. Dr Hitesh Ruparel for providing an opportunity of preparing a Grand Project Report and allowing us to use the resources of the institution during this project. We are extremely thankful to our Project Guide, Prof Sharif Memon and
Prof Bhargav Modi of NRIBM for their precious guidance regarding the

preparation of the Project Report. Their guidance has proved to be useful and without them, the preparation of this report might not have been possible. We are also thankful to the other faculty members of NRIBM for extending their valuable support for this project. We also extend our sincere thanks to the Respondents, who helped us during the course of our project and for their gracious attitude. We would like to take this opportunity to extend our warm thoughts to those who helped me in making this project a wonderful experience. Last but not the least; we would also like to thank our family for their support and encouragement.

Executive Summary
As a part of our study curriculum it is necessary to conduct a grand project. It provides us an opportunity to understand the particular topic in depth and which leads to through to that topic. My topic for the grand project is titled as Study of consumer oriented sales promotion in FMCG sector in which emphasis given to the effect of sales promotion on buying habits of consumers. To start with we will give brief information regarding FMCG sector then moving to the main topic we will explain what is topic is all about. Promotion is one of the pillars of marketing mix and same way sales promotion is also one of the elements of promotion. With respect to consumer oriented sales promotion there are certain theories narrated as operant conditioning and projective theory. Based on secondary source certain theoretical aspects are also included as a part of study. Then after concentration is given to the primary research. It includes the analysis and results of survey which was focuses on consumers behavior towards sales promotion campaign. The survey was conducted with the help of structured questionnaire. At last conclusion of report, findings and suggestions was given based on study of secondary source as well as primary research.

INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. TOPICS Research Methodology of the study Introduction Introduction to the topic Sales promotion strategies SWOT Analysis Data Analysis of the survey Findings of the report Recommendations Limitations Emerging Trends Conclusion Bibliography Annexure: Questionnaire Page No. 6 8 10 24 29 30 61 63 65 66 67 68 69

RESEARCH METHODOLOGY
Research Objectives: 1. To study consumer preferences with respect to sales promotion in FMCG sector. 2. To examine tradeoffs, relative importance of different attributes while responding to a sales promotion offer. 3. To study the effect of sales promotions in FMCG sector esp. in soaps and detergent industry. 4. To study consumer behavior in purchase of soaps and detergent Product categories under study Snacks: Hospitality Gopal Snacks

Research Design
Research design selected for this project is Descriptive.

Data collection Method:

(a) Primary Data Collection Method: Survey method was used for primary data collection. We used questionnaire as an instrument for survey method. Structured questionnaire. Type of questionnaire: Open ended and closed ended. (b) Secondary Data Collection method: Reference books. Internet.

Sampling Detail
1. Target population: The population for this research study consists of the residence of Ahmedabad. 2. Sampling unit: 3. Sample size: In this study the sampling unit is individual consumer. 100 consumers 100 retailers.

4. Sampling method: The sample is selected by using conveniencesampling method.

Introduction
FMCG Concept and Definition:

The term FMCG (fast moving consumer goods), although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use. Conceptually, however, the term refers to relatively fast moving items that are used directly by the consumer. Thus, a significant gap exists between the general use and the conceptual meaning of the term FMCG.

Further, difficulties crop up when attempts to devise a definition for FMCG. The problem arises because the concept has a retail orientation and distinguishes between consumer products on the basis of how quickly they move at the retailers shelves. The moot question therefore, is what industry turnaround threshold should be for the item to qualify as an FMCG. Should the turnaround happen daily, weekly, or monthly? One of the factors on which the turnaround depends is the purchase cycle. However, the purchase cycle for the same product tend to vary across population segments. Many low-income households are forced to buy certain products more frequently because of lack of liquidity and storage space while relatively high-income households buy the same products more infrequently. Similarly, the purchase cycle also tends to vary because of cultural factors. Most Indians, typically, prefer fresh food articles and therefore to buy relatively small quantities more frequently. This is in sharp contrast with what happens in most western countries, where the practice of buying and socking foods for relatively longer period is more prevalent. Thus, should the inventory turnaround threshold be universal, or should it allow for income, cultural and behavioral nuances?

Characteristics of FMCG Products:

Individual items are of small value. But all FMCG products put together account for a significant part of the consumer's budget. The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required. Many of these products are perishable. The consumer spends little time on the purchase decision. Rarely does he/she look for technical specifications (in contrast to industrial goods). Brand loyalties or recommendations of reliable retailer/dealer drive purchase decisions. Trial of a new product i.e. brand switching is often induced by heavy advertisement, recommendation of the retailer or neighbors/friends. These products cater to necessities, comforts as well as luxuries. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers.

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Introduction to the topic

COMPANY PROFILE Gopal Group, on its way to success has established many milestones, for others to follow. Leading by example, Gopal Group, now a multi-crore business conglomerate, took its first step in 1942. Dream child of the visionary Late Shri Hari Chandji Sugandhi, the group saw light of the day at a humble shop at Old Delhi. Today, the group has grown into a multi-product, multi-disciplinary enterprise of unprecedented strength and stature, spread across the country.
:: Gopal Group ::. Address : 339, F.I.E. , Patpargang, Delhi - 110092, INDIA. 011 - 43160260 contact@gopalgroup.net www.gopalgroup.net

Contact No. E-mail Id Website

: : :

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Endowed with most humane and philanthropic qualities, Shri Srigopal Gupta, Chairman of the illustrious Gopal Group, is the principal driving force behind the meteoric rise of Gopal Group. A visionary leader and able entrepreneur, Shri Gupta has enriched and strengthened the Group with his sound business governance and value-driven management. His ingenious ideas and precise execution are the pillars of effective product development and market direction. While he has been instrumental in elevating the Company to new heights, he plays a pivotal role in the Groups strategic planning, policies and corporate affairs. He also inspires the Companys unique work culture by promoting core values that focus on people, customers, innovation, quality, integrity, fun and profitability. Impending with his vibrant and versatile ideas of expansion and diversification to explore sustainable livelihood opportunities is his young and creative son, Mr. Apoorv Gupta. His passion for building the Company to a stronger and bigger conglomerate reflects in his keen interest in every facet of product development and introduction. Indeed, he is known for excellent people management and team building activities besides infusing the spirit of action and a result oriented work culture. Apoorv Gupta, a dignified management awardee heads the Sales & Marketing desk and is a man of many talents with a composed grace in Indian Music.

The grand vision and perseverance of the torch bearers of Shree Gopal Group lays the foundation of a reliable firm. The company continually visualizes to enhance its manufacturing technologies and contribute to its customer's value chain by providing them quality steels at an optimal price/value ratio.

The company underlines its strong vision to promote an environmentally responsible, safe and healthy work culture and also focus on continual improvement of processes and performance.

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.:: Rise & Shine ::. Gopal Group invites you to take up the challenges and make your skills count through numerous career and training opportunities. In Gopal, we have people who are different from one another, but united by deep-rooted values and culture. Offering unlimited challenges and opportunities for personal growth with an insight to care for its budding talents build the core part of the Groups human resources culture of development and values. Encouraging personal development potential to become a reality is a fundamental factor in its success. Gopal Group always encourages people to make the most of their talents and take a leading role 13

in their own development.

We keep our loyalty towards the consumers and the trust they place in our products with their everyday purchases at the core of the long-lasting relation that we enjoy with them. Our Company practices are based on mutual trust between colleagues, full dedication and transparency towards the Group, as well as towards all business and social stakeholders with whom we interact daily.

We uphold the protection of human dignity, unconditional respect of human rights, in every operational aspect of our business. We support the abolition of the exploitation of child labour and of forced and coercive labour, within our sphere of influence and along the entire production chain, through specific legal means and close relations with the work force.

We are an Indian company with manufacturing and sales facilities in strategic locations. We apply exacting standards to ensure premium quality products. Besides our day to day operations of manufacturing tobacco and non-tobacco products, we are also involved in assessing our present work methods and improvising according to the changing scenario.

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Regular training programmes keep our workforce fully informed about the latest in the industry. We contribute to community welfare through charitable activities and supporting NGOs.

Raw material is the life & soul of an end product & we, at Gopal Group, insist on the perfect. Our highly experienced workforce, led by a skillful & experienced Procurement Manager, most responsibly chooses the best to deliver the finest. Be it tobacco based products, flavors, fragrances, essences ... we handpick best of the lot.

With highly specialized and technically most advanced machinery and state of the art infrastructure situated at Baddi in Himachal Pradesh and in the NCR region, the plants are regularly upgraded to enhance the work capacity of the machines. In extremely safe, hygienic, resourceful and environment friendly conditions, skillful professionals, technicians, experts and workers put in the best of their 15

capabilities to produce highest quality products.

A good raw material treated & processed by most knowledgeable & well versed professionals, results in a superb end product. Meticulously made, at our hi-tech plants, every end product is an enviable creation that stands the test of performance exceptionally well at par with the leading brands. Gopal has indeed raised the bar for niche products. Establishing quality codes for others to follow these products are looked upon as inspiration for others.

We have now immersed ourselves into the hospitality business also in conjunction with world famous Welcome Group Hotels. Fortune Resort Grace the new hospitality venture is the offspring of this alliance. This new resort which has come up in Mussorie deserves more than a passing mention. Surrounded by pristine hills and enchanting valley, the resort is located at the Library End of the Mall Road. Spread over an expanse of 32 acres, it offers a choice of 74 well appointed rooms, including Valley View Rooms, Luxury Suites and opulent Presidential Suite. This is a perfect place to unwind yourself and at the same time provides a unique environment for business and leisure. And this is just a beginning. More such landmark hotels are lined up to dot the Indian landscape in the hospitality circuit.

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Without power, development is not possible and we at Gopal comprehend this clearly. It is this appreciation that has spurred us to set up a Mega hydro power project in Himachal Pradesh. Once completed the company will be able to tap power generation potential in the state of Himachal and Uttarakhand and help to augment power generation. Behind, our stellar performance is the power of the people & the foresight of the management. A strong workforce which is working relentlessly to deliver this powerful vision of becoming the powerhouse in the hilldevelopment of Himachal Pradesh & Uttarakhand. With the commissioning of the project the group aims to achieve international standard of excellence in all aspects of hydropower.

.:: Social Responsibility lies at the core of our business philosophy ::.

Gopal Foundation was established on 8th September, 1999. It was set up for the noble cause of imparting education. Needy and deprived children were adopted for quality education and sent to good schools. These bright little ones were picked up from poor families which were below the poverty line. Soon the Trustee realized that only education did not suffice the cause for which Gopal Foundation was established and it was decided to expand our horizon. The Foundation decided to help the government in fighting the natural calamities and man- made adverse conditions. We donated generously towards rehabilitation of the widows of the martyrs of Kargil War in 1999. When Mother Nature turned hostile and a heart wrenching earthquake struck in Bhuj, Gujarat, in 2001, Gopal Foundation adopted an entire village and helped in construction of the houses. When TSUNAMI struck and washed away the happiness from the shores of south western coastline in India in the year 2004, we helped in rehabilitating the displaced sufferers.
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Kargil War in 1999

Year 2004 also saw a major expansion in the scope of our work. It was decided to fight a cause which not only takes away life but leaves the family members emotionally blank as they see their loved ones die helplessly in front of them for lack of funds to buy the costly medicines. It was decided to fight CANCER by adopting those patients who are so poor that they cannot even dream of their treatment. Not everybody can think of going to a good hospital, let alone the treatment. These patients go to hospitals such as AIIMS in the hope of being treated free. Here, no fee is charged for doctors consultation and to some extent the medicines are also free. But when it comes to costly medicines, e.g. chemotherapy drugs, even the hospital cant afford to give them to every poor and needy patient. These patients realize that they will just have to wait for the inevitable painful departure from their sufferings and their family members will have to see them going through that unbearable pain every day. These patients come not only from Delhi but from all parts of India to AIIMS. We got in touch with the Medical Superintendent of AIIMS and took up the matter with the Head of Oncology Department. A system was worked out with the doctors and the Welfare Officer, wherein all the needy patients who are below the poverty line are recommended to Gopal Foundation for adoption. We not only help them with chemotherapy medicines but also counsel them thoroughly. They are introduced to the magic of Yoga which not only helps them strengthen their inner self but also helps them in fighting their disease with enhanced immunity. Till April, 2010, we registered 500 patients with us who suffer from various
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types of cancer viz., Breast, Lung, Brain Tumor, Cervix, Colon, Neuro Fibroma, Blood, Rectum, GIST, Ovary, Uterus, Prostate, Thyroid, Obstructive Jaundice, Non Hodgkins Lymphoma etc.

AIIMS Delhi, INDIA Various other causes are also taken up by Gopal Foundation. We help an NGO in Delhi which takes care of infants who are abandoned by or separated from their parents due to various reasons. Some of these infants are just a day old when abandoned by their mothers. This NGO tries to find their parents, if possible, otherwise after following a proper procedure hands them over to childless couples, thus giving a reason to smile not only to the couple but to the child as well. The Foundation supplies milk to this NGO every month so that these little ones are not deprived of food. There is another NGO in Delhi which runs a pre- school in the slums of South Delhi. The children of this pre -school are prepared to get admission in good private schools. This NGO not only helps in getting them admission but also makes sure that all the academic requirements of these children are also catered to. Since we feel that a child should be made self sufficient and education is the first step towards it, we help the pre -school of this NGO in every possible way. Schools run by an NGO in the slums of East Delhi and Noida are also adopted by us. All their education material requirements like, books, copies, writing material etc. and to some extent furniture are taken care of by our Foundation. The vocational training schools of these NGOs are also supported by us by providing them various equipments. Gopal Foundation also helps in marrying off the daughters of poor families and gifts them utensils etc. to set up their kGopal Grouphen. Every year ten such newlyweds are supported by Gopal Foundation.
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We have certainly not forgotten our senior citizens. We have adopted an old age home in Delhi, where different requirements of these citizens are taken care of. Apart from all the above causes, Gopal Foundation is associated with ISKCON and helps in their GAU SEWA Abhiyan.
Bright Bars

We offer superior quality bright bars in a variety of grades, sizes and tolerances. Size Range 5mm - 100mm (1/5" - 4") Supply Conditions

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Length

3 to 6.5 Meters

Cold Drawn, Centreless Ground, Peeled & Polished, Rough Peeled or Smooth Turned bars Tolerances h9, h10, h11, k12, k13

Grit Polish as per Customers Request Heat Treatment Bars End Finish Specifications Annealed, Solution Annealed or Water Quenched Chamfered ends, Plain ends without Burrs or Sharp Edges As per EN, DIN, JIS, ASTM, BS, ASME, AISI, etc.

Precision Quality Shaft Bars

Our precision quality bars are known for best machinability as they are made out of the most advanced and specially designed production line that maintains and gives consistent mechanical and chemical facts as per customer requirement. All the bars are thoroughly checked for ultrasonic flaws and are packed using specially designed equipments using distance rings, which is then packed in plywood boxes. Our Precision Bars are regularly used in :

Pump Shafts Valve Shafts Cylinder Shafts Bearing Bars Boat Shafts Piston Shafts Size Range 21

6mm - 70mm (1/4" - 2 3/4") Supply Conditions Length Tolerances Straightness - 3 to 6 Meters - h9, h8, j6, f7, f8 - 0.5 mm per Meter

Heat Treatments - Annealing, Solution Annealing

Square and Hexagonal Bright Bars

Size Range 16mm - 47mm Supply Conditions

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Length Tolerances

- 3 to 6 Meters - h11, k12, k13

Cold Drawn, Ground and Grit Polished as per Customers Request Heat Treatment - Annealed, Solution Annealed or Water Quenched Bars End Finish - Chamfered Ends, Plain ends without Burrs or Sharp Edges Specifications Equal Angles - As per EN, DIN, JIS, ASTM, BS, ASME, AISI, etc.

100% Identified through handheld spectrometer

Size Range Size (mm) 30 x 30 35 x 35 40 x 40 50 x 50 60 x 60 65 x 65 Supply Conditions 23 Size (inch) 1 1/4 x 1.1/4 1.1/2 x 1.1/2 1.3/4 x 1.3/4 2.1/4 x 2.1/4 2.1/2 x 2.1/2 2.3/4 x 2.3/4 Thickness (mm) 5, 6, 7 5, 6, 7 5, 6, 7 5, 6, 7 5, 6, 7 5, 6, 7

3 to 6 meters bars with finished ends Both ends are color coded as per customers requirements. Sharp or round cornered available. Special delivery conditions (available on request) Special cut to length with tolerances of -0 +10 mm, 240 - 320 Grit Polished Annealed & Pickled finish (available on request) Forged & Turned Round Bars

Size Range 150 to 500 mm Supply Conditions Length - 3 to 4 Meters Heat Treatments - Annealing, Solution Annealing Ultrasonic Tested Free From Surface Defects and Cracks 100% Identified with Handheld Spectrometer Flat Bars

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Size Range Width (mm) 25 30 35 40 45 50 55 60 65 70 80 85 90 Supply Conditions 3 to 6 meters bars with finished ends 25 Thickness (mm) 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10 5 to 10

Both ends are color coded as per customers requirements. Sharp or round cornered available. Special delivery conditions (available on request) Special cut to length with tolerances of -0 +10 mm, 240 - 320 Grit Polished Annealed & Pickled finish (available on request) Hot Rolled Hexagonal & Sharp Cornered Square Bars

Size Range SQUARES - 18mm - 47mm (11/16" to 13/4")

HEXAGONALS- 18mm - 57mm (11/16" to 23/4") Supply Conditions Length - 3 to 6 Meters 100% Identified with Handheld Spectrometer Hot Rolled Round Corner Squares ( RCS ) 26

Size Range 45 mm X 45 mm 75 mm X 75 mm 80 mm X 80 mm 85 mm X 85 mm 90 mm X 90 mm 100 mm X 100 mm Supply Conditions Length Upto 8 Meters Hot Rolled ( Black ) Surface 100% Ultrasonically tested Spot grinded or fully grinded surface Free of surface defects/cracks Cold Sawable Smooth Ends without sharp edges 100% Material Identity tested through handheld Spectrometer Products 27

Bright Bars Precision Quality Shaft Bars Square and Hexagonal Bright Bars Equal Angles Forged & Turned Round Bars Flat Bars Hot Rolled Hexagonal & Sharp Cornered Square Bars Hot Rolled Round Corner Squares ( RCS ) Hot Rolled Round Bars Continuous Cast Billets / Blooms Forging Quality Ingots

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DATA ANALYSIS

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Consumers

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Q1. Which brand of Snacks do you use?

Snacks Gopal Namkeen Angry Birds Lays Bingo Tato Respondents 41 3 14 8 34

Interpretation:
The above question has been formed to know the Snacks at the top of the mind of the customers. It shows those consumers purchase and use of that particular brand. It will help to the company to know the market scenario and the major brands in the market. Form the above result it is clear that out of 100 customers more than 40 are consumers are having the same brand as the image in their mind, whereas others category is also showing the higher graph than these 3 major players.

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Detergent powder Nirma supper Wheel Surf Ariel Others

Respondents 19 14 35 18 14

Q5. Which of the following promotional schemes you have come across so far?
Promotional schemes Coupons price off Freebies scratch cards lucky draw Bundling extra qty. Respondents 16 84 24 12 9 31 44

Familiarity of promotional Schemes

100 80 60 40 20 0 Coupons Respondents 16 price off 84 Freebies 24 scratch cards 12

lucky draw 9

Bundling 31

extra qty. 44

Interpretation:
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The above stated question clearly states the awareness of promotional schemes offered in the market by the marketers to attract more and more consumers. The results show that price off and extra quantity is the two main offers/schemes which consumers have came across at the time of purchase. It will help the manufacturers and marketers too how too launch their new products in the market with which schemes.

Q6. Which medium do you feel is suitable to promote the various promotional schemes?
Source Radio TV Newspaper Hoarding Others Respondents 11 69 43 15 12

Mediums to promote the promotional schemes

80 60 40 20 0 Respondents

Radio 11

TV 69

News.ppr 43

Hoarding 15

Others 12

Interpretation:
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This question gives stress on the media habit of the people and through which the product should be launch or they think it would be better than other Medias. The above result shows TV as the best media to market the product which will cover majority of the viewer ship. On the second place it shows news papers as the media to promote the product in the market.

Q7. Is there any existing scheme on the Snacks you are currently using?
Particulars Yes No Respondents 58 42

Existing scheme on the Snacks

70 60 50 40 30 20 10 0 Respondents Yes 58 No 42

Interpretation: The answer of the respondents give idea about the awareness of the promotional schemes offered in the market on their existing snacks. 34

In this situation more then 40% of the people are not aware or having vague idea about the promotional schemes running into the market. It shows that people are not much aware of the schemes which continue in the market it may be because of the present stock of the product at their place.

Q8. If yes, please specify?

Particulars 3+1/Other Free Discount No idea No answer Respondents 36 22 6 36

40 35 30 25 20 15 10 5 0 Series1 3+1/Other Free 36 Discount 22 No idea 6 No answer 36

Interpretation:

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This question supports the above question. It enlists the answers of those customers who are aware of the present schemes offered in the market and also those schemes which are more demanded in the market. The result shows that 1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the market. So manufacturers may go for the same at the time of launching their product.

Q9. If you get an attractive promotional offer in the product other then of your choice will you switch over?
Particulars Yes No Respondents 73 27

Switching behavior
80 70 60 50 40 30 20 10 0 Respondents Yes 73 No 27

Interpretation:

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It shows the level of brand loyalty among the consumers. The result clearly shows that out of 100, 73 people are ready to switch over to another brand if they find better promotional schemes which suits their budget means more qyt + less cost + quality. Combination of all these schemes will run better in the market.

Q10. Give reason for the same?

Particulars Cost+qty Quality Satisfaction Brand loyal More benefit/budget Season change No answer Respondents 16 17 2 5 22 2 36

Reason
40 30 20 10 0 Cost+qty Respondents 16 Quality 17 Satisfaction Brand loyal 2 5

More Benefit/bud 22

Season change 2

No answer 36

Interpretation:
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Above question it gives specific reasons for switching too other products. It shows that extra quantity with less or same price, more satisfaction, quality and other factors influence consumers to switch over too other bran

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Findings of the report:

Sales Promotion, a short-term inducement, offered to a consumer or trade has gained momentum as a promotional tool world over. It represents nearly three fourth of the marketing budget at most consumer product companies. Sales promotions can enhance consumers self-perception of being smart or a good shopper FMCG are such a market where the level of loyalty remains low and this is because of many reasons. Quality as the most influencing factors in the purchase decision while price is also an important for purchase decision. Schemes always attract more and more consumers towards particular brand. Simultaneously it gives idea about the factors which consumers look most in the product before they make final decision Price off and extra quantity is the two main offers/schemes which consumers have came across at the time of purchase TV as the best media to market the product which will cover majority of the viewer ship. On the second place it shows news papers as the media to promote the product in the market People are not much aware of the schemes which continue in the market it may be because of the present stock of the product at their place. 1+1 or 2+1 or other free schemes are more demanded and more aware schemes in the market. People are ready to switch over to another brand if they find better promotional schemes which suits their budget means more qyt + less cost + quality. Extra quantity with less or same price, more satisfaction, quality and other factors influence consumers to switch over too other brands. Retailer stocks all types of soap and detergent because of competition. People are more quality and price oriented. Consumer remember that name of the product by the company name and also from the past performance of that company 39

Consumer remembers that name of the product by the company name and also from the past performance of that company Retailers are not suggest to purchase particular brand because of personal relation or that customer are brand loyal

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Recommendation:
The findings of the empirical study indicate that unless the brand to be promoted is in the consideration set of the consumer, sales promotion by itself is unlikely to have any major impact. Clearly this shows that managers need to invest into brand building exercise so that his/her brand appears in the consideration set of the target consumers. Only after this should he spend time, money and energy on sales promotion activities. Sales promotion should not be used in isolation but need to be integrated with other tools and in line with the overall positioning of the brand. Also the importance of the role of mass media came out clearly in the study. Companies need to create sufficient awareness about sales promotion schemes through mass media in order to create awareness. FMCG products are low involvement products characterized by switching behavior. Also the person going to the shop for the purchase of soap is the final decision maker of the brand. Hence it is essential that companies need to design attractive, striking, visible POPs for scheme announcements. With respect to nature of scheme, the finding suggested that premium (free gift) was popular with companies. While both retailers and consumers preferred price offs. So it is necessary that the perceived value of a free gift has to be appealing and high for the target consumers. Repetitive use of the same premium for a prolonged period may have negative effect on the loyal customers. When the company is giving its own product free as premium, it needs to ensure the quality of the product from it as it is likely to jeopardize the image of both its products. The findings exhibited that both the retailers and consumers perceived that sales promotion activities carried out by the companies for increasing sales in short term and clearing excess stocks. What it implies is that companies need to use sales promotion

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synergistically and communicate so that they provide value to the target audience and enhance brand quality/image perceptions. Companies need to systematize information flow regarding sales promotion activities particularly at dealer and retailer level. Ensuring proper information flow and devising checks and measures to reduce misappropriations and implementation flows should be considered critical aspects for the success of sales promotion activities by the companies. As retailing is fragmented, direct reach by companies is next to impossible. Through dealers and proper feedback mechanism, companies keep in touch with the market. From the study it was found that smaller retailers felt neglected and not enthused to implement the schemes, particularly when additional handling, stocking, accounting was required on the part of a retailer without compensatory margins. It can be seen that the retailer and consumer perceptions matched with respect to preferences of schemes, underlying motivations and role of mass media. This implies that the retailer would be a rich source of information about the consumer and the likely response to sales promotion activities. Developing a system to tap such responses from time to time both at retailer and consumer level would be helpful for planning future sales promotion activities. In order to build trust and commitment companies should tap preferences, perceptions of retailers as well as consumers.

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Limitations of the study

We considered Ahmedabad region only because of limited time duration.

Due to this, our sample size is only 100, which is not very large.

All the respondents could not fill their questionnaire on their own due to language problem and also problem of time and lack of positive behavior.

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.

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Emerging Trends
So far as FMCG market is concern there is new trend is emerging known as Joint sales promotion. Actually it is old concept but it was more prevailing in durable products now it is coming intro non durable goods also. When any sales promotion scheme either for trade or consumer is announced by more than one company and /or more than one brand of the same company, it is referred as joint sales promotion or horizontal cooperative sales promotion or cross promotion or umbrella sales promotion.

Classification of joint sales promotion:

Use complementarily due to natural use New use catering complementary relationships Commonality of need due to use time Tie-up of a new /slow moving brand with an established brand Target market commonality Seasonal demand Distribution commonality Targeting new segment Derived demand Countering competitive joint sales promotions

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Bibliography
BOOKS
Philip Kotler, Marketing Management, 11th edition, Pearson education Asia Publication. C.R.Kothari, Research Methodology methods & techniques,New Age International(p)ltd.publishers,2nd edition.

WEBSITES
http://www.nirma.co.in_files http://www.hul.co.in_files http://www.pg-india_files http://www.godrej_files

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Annexure

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Questionnaire Customers
We are students of MBA studying in GLS NRIBM AHMEDABAD and carrying out a survey for our academic project toRole of sales promotions in FMCG. So please fill this questionnaire. Your identity would not be revealed and information will only be used for academic purpose.

Q1. Which brand of Snacks do you use? Snacks Respondent Detergent powder Gopal Nirma supper Hamam Wheel Lifebuoy Surf Nirma Ariel Others Others

Respondent

Q2. Do you always buy the same brand of Soap / Detergent? Particulars Respondent Yes No Q3. Which factors do you normally consider while purchasing a particular brand of Soap / Detergents? Bathing Factors soap Det.powder Fragrance Quality Company image Price Packaging Others Q4. Do you consider promotional schemes while purchasing a particular brand of Soap / Detergent? Particulars Respondent Yes No Q5. Which of the following promotional schemes you have come across so far? Promotional Respondent 47

schemes Coupons price off Freebies scratch cards lucky draw Bundling extra qty. Q6. Which medium do you feel is suitable to promote the various promotional schemes? Source Radio TV Newspaper Hoarding Others Respondent

Q7. Is there any existing scheme on the Soap / Detergent you are currently using? Particulars Yes No Q8. If yes, please specify? Particulars 3+1/Other Free Discount No idea No answer Respondent Respondent

Q9. If you get an attractive promotional offer in the product other than of your choice will you switch over? Particulars Yes No Q10. Give reason for the same? Particulars Cost+qty Quality 48 Respondent Respondent

Satisfaction Brand loyal More benefit/budget Season change No answer Q11. Give suggestions about futuristic promotional schemes.

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