A Study On Sales Promotion and Consumer Behaviour of Sai Lakshmi Milk Products Krishnagiri, Tamil Nadu

A STUDY ON SALES PROMOTION AND CONSUMER BEHAVIOUR
OF SAI LAKSHMI MILK PRODUCTS
KRISHNAGIRI, TAMIL NADU
SURYAPRAKASH M
Second Year MBA, Adhiyamaan College of Engineering (Autonomous) Hosur

Tamil Nadu
Abstract: Sales promotion is the process of persuading a potential customer to buy the
product. Sales promotion is designed to be used as a short-term tactic to boost sales it is
rarely suitable as a method of building long-term customer loyalty. Some sales promotions
are aimed at consumers. Others are targeted at intermediaries and at the firm's sales force.
The study is limited to the consumer buying behavior and sales promotion about Sai Lakshmi
Milk Products. A study will be beneficial for both company and its customers. The study is
done by direct interaction with customers through the survey; survey consists of
questionnaires related to the company which gives a clear picture about the company in the
minds of customers, which helps the company to give a successful output by providing the
requirement to the customers. For this research, researcher used descriptive research design
with 120 samples included for the study. In this study, we can analyse the consumer opinion
about price, quality, packaging, brand awareness and advertisements of the products.The
study concludes that the sales promotion strategies practiced in the selling of milk had
positive and significant influence on the consumer buying behaviour. Thus, the kinds of sales
promotion activities undertaken by the firms selling of milk products influenced the behavior
of the customers with effect to the purchase of the products offered. The study concludes that
various factors enhance the effectiveness of sales promotion strategies in the milk products.
Factors such as price reduction, point of sale display, free samples and free gifts are
important when formulating a firm’s sales promotion programmes. Hence, consideration and
application of these factors was likely to enhance the firm’s sales promotion strategies and
thereby positively influencing consumer behavior. Further studies can be carried out to assess
various consumers’ behaviour on various methods of sales promotion in the same industry to
understand. An important future research direction is to make a comparative study to
investigate whether there are any differences in the companies among same industry.
Keywords: Sales promotion, Consumers behavior, Consumer,Culture,Marketing.
Introduction CONSUMER BEHAVIOUR In simple way we can say that the behaviour is the
response of a stimuli. The usual stimulus is the need for which there is action called response.
Consumer behaviour can be defined as “the activities and the actions of people and
organisation that purchase and use economic goods and services, including the influence on
these activities and actions”. J. F. Engels In other words it can be said that “consumer
behaviour refers to all the psychological, psychological and socio psychological reasons of
individual consumers respond to marketing.’’For the marketer that person is important who
makes the buying decision, not the one who actually makes the purchase or uses the product.
Understanding this person helps marketers to develop marketing mixes and predict how
targeted customers will respond to them.
SALES PROMOTION Sales promotion is the process of persuading a potential customer to
buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales –
it is rarely suitable as a method of building long-term customer loyalty. Some sales
promotions are aimed at consumers. Others are targeted at intermediaries and at the firm's
sales force. Sales promotion is one of the five aspects of the promotional mix. (The other 4
parts of the promotional mix are advertising, personal selling, direct marketing and
publicity/public relations.) Media and non-media marketing communication are employed for
a pre-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples include contests, coupons, freebies, loss leaders,
point of purchase displays, premiums, prizes, product samples, and rebates. Sales promotions
can be directed at either the customer, sales staff, or distribution channel members (such as
retailers). Sales promotions targeted at the consumer are called consumer sales promotions.
Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some
sale promotions, particularly ones with unusual methods, are considered gimmicks by many.
Review of Literature
Keller (2018) suggested that the topic of consumer behaviour and sales promotion is one of
the massively studied topics by the researchers and marketers in the past and still being
studied.Variawa (2019) suggested the study conducted by analyzed the influence of sales
promotion on consumer decision making process for Fast Moving Consumer
Goods.Schiffman and Kanuk, (2019) suggested that in the next stage, consumer searches
information related to desired product or service.Chaharsoughi and Yasory (2019) studied
“effect of Sales Promotion on Consumer Behavior based on culture”.Shamsi and Khan
(2019) tested the efficiency of Sales Promotion with respect to influencing different
consumer behavior factors.Schultz (2018) says that, sales promotion generally works on a
direct behavioral basis rather than effecting awareness or attitude.Variawa (2019) analyzed
the influence of packaging on consumer decision making process for Fast Moving Consumer
Goods.Moshi (2020) assessed the effectiveness of promotion techniques upon sales
performance of the new motor vehicles in South Africa.Jarvenpaa and Todd (2020) have
indicated that the types of sales promotion have played an important role in influencing the
purchasing behavior of potential consumers.
Research Methods
Research Design : Descriptive research design
Scaling techniques : Semantic differential attitude scale
Data collection methods : Primary and Secondary data
Data collection tools : Questionnaire
Sampling techniques : Purposive sampling
Sampling Size and duration : 120 and 22nd January to February 22th 2020.
Tools used for data analysis : t-test, f-test, Chi-square test, Correlation and Regression
Data Analysis and Interpretation

The above table shows that 59.2% of respondents are male and 40.8% of the respondents are
female.Thus the majority of the respondents are male.The above table shows that 26.7% of
the respondents said that word of mouth, 40% of the respondents said that agents, 23.3% of
the respondents said that neighbors and 10% of the respondents said that advertisement as
their way of knowing the brand. The above table shows that 30.8% of the respondents said
that once in a day, 20.8% of the respondents said that twice in a day, 24.2% of the
respondents said that once in a week and 24.2% of the respondents said that occasionally that
they buying the products. The above table shows that 30% of the respondents prefer milk,
26.7% of the respondents prefer sweets, 27.5% of the respondents prefer curd and 15.8% of
the respondents prefer butter to buy. The above table shows that 40% of the respondents buy
2 litres, 21.7% of the respondents buy 1 litre, 15.8% of the respondents buy ½ litre and
22.5% of the respondents buy ¼ litre. The above table shows that 30.8% of the respondents
said that quality, 34.2% of the respondents said that freshness, 23.3% of the respondents said
that neat package and 11.7% of the respondents said that easy availability is the reason to
prefer the product. The above table shows that 50.8% of the respondents said that they have
seen advertisement and 49.2% of the respondents said that they have not seen the
advertisement of the product.The above table shows that 62.5% of the respondents said that
there is stall available near by the home and 37.5% of the respondents said that there is no
stall available near by the home The above table shows that 21.7% of the respondents said
that highly satisfied, 22.5% of the respondents said that satisfied, 17.5% of the respondents
said that neither satisfied nor dissatisfied, 16.7% of the respondents said that dissatisfied and
21.7% of the respondents said that highly dissatisfied towards the freshness of the
product.The above table shows that 21.7% of the respondents said that highly satisfied,
22.5% of the respondents said that satisfied, 17.5% of the respondents said that neither
satisfied nor dissatisfied, 16.7% of the respondents said that dissatisfied and 21.7% of the
respondents said that highly dissatisfied towards the freshness of the product.
Findings, Suggestion and Conclusion

59.2% of respondents are male.38.3% of the respondents are in the age group of 31-
40.40% of the respondents said that agents as their way of knowing the brand.30.8% of the
respondents said that once in a day that they buying the products.30% of the respondents
prefer milk to buy.40% of the respondents buy 2 litres.34.2% of the respondents said that
freshness is the reason to prefer the product. 27.5% of the respondents said that strongly
agree towards the prices of the products.27.5% of the respondents said that strongly agree
towards the product come under the budget. 58.3% of the respondents are not willing to buy
new brand.Most of the respondents prefer the product for good quality
The following is the list of suggestions that are offered based on the findings of the
study with a view to provide more satisfaction to the consumers in purchase products of Sai
Lakshmi Milk Products, Krishnagiri.In the competitive environment, toy firms can survive
only by offering more consumer value than competitors. Providing superior consumer value
requires the organization to do a better job of anticipating and reacting to the consumer needs
than the competitor. Prices must be fixed at a nominal rate so that people of all classes are
benefited.Few of the respondents feel that the concern is not providing after sales service
adequately. So, the concern should take necessary steps to avoid this.It is necessary to create
more number of awareness about Sai Lakshmi Milk Products to the consumer’s side.To
retain the old consumer and to gain new consumers, the dealer has to improve the service
according to consumer’s expectation.The producers may extend the retail outlets.The concern
may utilize some of the sales promotional activities by offering gifts, discounts, reducing the
price etc. Most of the respondents purchase products from Sai Lakshmi Milk Products due to
its quality. So the company should maintain the same to retain the consumer.The company
should give some offers and gifts to the consumer to increase the sales.Advertisement is one
of the measures to improve the sales and most of the respondents were influenced through
advertisement so the manufacturer should give move importance to the advertisement.
Sales promotion techniques are effective for influencing consumer purchase
decision. Different promotional tools influence consumer decisions in varying trend. The
managers of companies dealing with the select product categories can benefit with the results
and implement the promotional strategies accordingly. The study concludes that the sales
promotion strategies practiced in the selling of milk had positive and significant influence on
the consumer buying behaviour. Thus, the kinds of sales promotion activities undertaken by
the firms selling of milk products influenced the behavior of the customers with effect to the
purchase of the products offered. The study concludes that various factors enhance the
effectiveness of sales promotion strategies in the milk products. Factors such as price
reduction, point of sale display, free samples and free gifts are important when formulating a
firm’s sales promotion programmes. Hence, consideration and application of these factors
was likely to enhance the firm’s sales promotion strategies and thereby positively influencing
consumer behavior.
References
Gupta, Sunil (2015), “Impact of Sales Promotions on When, What and How Much to Buy,”
Journal of Marketing Research, Vol.25 (4), pp.342-355.
1.Ailawadi, K.L., Neslin, S.A. & Gedenk, K. (2001). “Pursuing the ValueConscious
Consumer: Store Brands Versus National Brand Promotions”, Journal of Marketing, Vol.
65(1), pp.71-89. 3.
2. Alvarez, B.A. & Casielles, R.V. (2005). “Consumer Evaluations of Sales Promotion: The
Effect on Brand Choice”, European Journal of Marketing, Vol.39 (1/2), pp. 54
3. Aaker, David A, Kumar, V and Day, George, S (2004), Marketing Research, John Wiley
& Sons (Asia) Pte. Ltd., Singapore.
4.Armstrong, Gary and Kotler, Philip (2007), Marketing – An Introduction, Pearson
Education, 7e.
5. Burnet, John J. (2002). Promotion Management, Houghton Mifflin Company, USA
6. www.aahamilk.com
7. www.journals.sagepub.com

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A STUDY ON SALES PROMOTION AND CONSUMER BEHAVIOUR

OF SAI LAKSHMI MILK PRODUCTS

KRISHNAGIRI, TAMIL NADU

Second Year MBA, Adhiyamaan College of Engineering (Autonomous) Hosur

Keywords: Sales promotion, Consumers behavior, Consumer,Culture,Marketing.

Data Analysis and Interpretation

Findings, Suggestion and Conclusion

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