Sandeep Report

EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

EXCECUTIVE SUMMARY
The Indian retail industry is divided into organized and unorganized sectors. India’s retail sector is wearing new clothes and with a three-year compounded annual growth rate of 46.64%, retail is the fastest growing sector in the Indian economy. Traditional markets are making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike, introducing the Indian consumer to an unparalleled shopping experience. However organized retail is at a very nascent stage covering only 3% of retail market, which brings huge opportunity to new players, with its present growth rate it is expected to grab 10% of retail market within three-four years. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of India’s GDP. Big Bazaar a hypermarket was established in the year 2001 with the vision to address the hunger, i.e low price-premium quality, of middle and lower class population of the country which is a huge chunk of opportunity. Big Bazaar is a chain of shopping malls in India currently with 120 outlets, owned by the Pantaloon Group. It works on same the economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd. Sales promotion is short term tool used to reward the loyal customer, stimulus to buy more than the plan and attracts the brand switchers. Advertising offers reason to buy, sales promotion offers an incentive to buy. One such tool used is Discounts where products are offered at a price lesser than the MRP. Since the sales promotion involves Money, Time and Resource it becomes very essential to evaluate the sales promotion from time to time. This report focuses on “EVALUATION OF SALES PROMOTION – A case study of TASTY TREAT a brand of BIG BAZAAR”. The study includes three product category: Biscuits, Snacks and Mango juice. The study was conducted in Big Bazaar for the period of 60 days, and was conducted with objectives: 1. To evaluate sales promotion with respect to tasty treat brand. 2. To study customer’s perception about sales promotion of tasty treat brand. 3. To study customer’s preferences towards the promoted brands. 4. To study customer satisfaction about the sales promotion of tasty treat brand. 5. To identify the factor influencing the brand choice.
KOUSALI INSTITUTE OF MANAGEMEMENT STUDIES, DHARWAD

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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

RESEARCH METOHODLOGY: The data was collected in two ways 1) Primary Data and 2) Secondary Data. Selection of sample: • Population : Hubli-Dharwad • Sample size : 100 • Sample method : Random Sample • Area of survey: In store (BIG BAZAAR). Measurement and analysis technique: • Simple percentage method • Graphical representation using data code sheet Major Outcomes of the Project: 1. The company achieved sales target (quantity) of Tasty Treat is in this year by compromising on margin up to 8-9%. 2. The survey reveals that while choosing brand from biscuits, snacks or mango juice category, tasty treat is given last preference. This is mainly because of lack of awareness, their previous experience about the brand, their perception about the brand. 3. The brand preference pattern remains same if the entire available brand on display is promoted. Only the unique promotion is influential on customers. 4. The main cause for selecting a brand from biscuits, snacks or mango juice category is their previous experience i.e Taste 5. No means of communication regarding the Tasty Treat is done. Only visitor gets a chance to know about the brand. The main reason for not preferring the Tasty Treat is “unawareness factor”. 6. 42% of customers are satisfied with the present sales promotion. Remaining 52% of customer did not notice the promotion mainly because of other brand loyal, perceived value of the brand. Limitations: 1. Project study is not an exact science, so one cant’ accept 100% result, only justified solutions are given. 2. The sample size is very small when it comes to footfall. 3. The findings are inferences of the study are limited to Hubli-Dharwad City 4. As the sample size is very small, hence the findings cannot be generalized.

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5. Response of the respondent might be biased which might have affected the findings of the survey.

CHAPTER – I
INTRODUCTION

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BRAND OF BIG BAZAAR

INTRODUCTION Retailing is a sale of merchandise from a fixed location (such as kiranas, hypermarket, mall etc) for final consumption by the customer. The concept of retailing can be traced back to the times when man stopped producing their entire requirement by themselves and trading came into existence. Indian retail industry is all set to take a new contour i.e from unorganized to organized retailing. Although presently share of organized retailing is very low compared to the other countries like US, China, organized retailing in India is 3% of total retail industry. But the pace at which it is growing is the best indications that it will rule the market within next few years. With the opening up of market for FDI it is expected to grow at rate greater than the present rate, but it will affect the small and unorganized retailer to the large extent. Big bazaar, a division of Pantaloons retail(India)limited, was started in 2001 first in Mumbai. Which now has grown to the 120 big bazaar across 72 cities in India. Pantaloons has extended its reach from premium or brand oriented customer to value for money oriented customer, which caters to the need of all sections of customers with its various types of retailing formats pantaloons has received a great applause from its customer. The customer satisfying approach of Pantaloon has been appreciated by the customer in the way of ever increasing walkins. In order to keep pace with increasing competition the company has came up with its own products i.e they are marketing the product under the brand names like Tasty treat, Care mate, Clean mate, John Miller, DJ&C, AFL etc. To cater to need of a price sensitive customer these own brands are often run on promotional offers which are competitive to market leaders. Sales promotion is an important component of a company's marketing communication strategy along with advertising, public relations, and personal selling. At its core, sales promotion is a marketing activity that adds to the basic value proposition behind a product (i.e., getting more for less) for a limited time in order to stimulate consumer purchasing. As this definition indicates, sales promotion may be directed either at end consumers. Sales promotion stems from the premise that any brand or service has an established perceived price or value, the "regular" price or some other reference value. Sales promotion is believed to change this accepted price-value relationship by increasing the value and/or lowering the price. Familiar examples of consumer sales promotion tools include contests and sweepstakes, branded giveKOUSALI INSTITUTE OF MANAGEMEMENT STUDIES, DHARWAD

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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

away merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free trials, demonstrations, and point-accumulation systems. Three issues clarify sales promotion. First, sales promotion ranks in importance with advertising and requires similar care in planning and strategy development. Second, three audiences can be targeted by sales promotion: consumers, resellers, and the sales force. And third, sales promotion as a competitive weapon provides an extra incentive for the target audience to purchase or support one brand over another. This last factor distinguishes sales promotion from other promotional mix tactics. For example, unplanned purchases may be directly related to one or more sales promotion offers. Over recent years, sales promotion has become a particularly dynamic area within the overall context of marketing communications. Although accurate figures are difficult to come by, most industry pundits agree that, today, more money is spent below the line than above it. Since the impact of sales promotion is, primarily, geared to the short term, it is inevitable that the area should enjoy considerable growth at times of economic recession. Pressure on personal levels of disposable income tends to make consumers significantly more price-sensitive, and price-oriented sales promotions reflect this consumer pressure. Moreover, consumers have become increasingly price- and value-sensitive. Instead of simply purchasing a particular brand, many consumers use the basis of price in order to make their purchasing decisions. In many categories, consumers have become increasingly used to the offer of some form of incentive. Increasing numbers of brands are effectively forced to continue providing such incentives to satisfy the needs of consumers. However, it is also true that this growth has been influenced by changing attitudes among marketers. In an increasingly competitive retail environment, and with the concentration of buying power into relatively few hands, manufacturers have turned to sales promotion to achieve on-shelf differentiation between their own products and those of their competitors. It well known that the opportunity for real product differentiation is diminishing as a result of the convergence of technology. The variety of sales promotion techniques provides manufacturers with a comparatively easy method of distinguishing their product from those of the competition within the retail environment. The retail trade has also imposed other pressures on manufacturers to focus their attention on promotions. Rising sophistication on the part of retailers and, importantly, direct access to brand sales data collected at the point of purchase, have resulted in
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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

retailers demanding higher levels of promotional support from their suppliers in return for continued distribution and display levels. Retailers are now more aware than ever before of the financial contribution which an individual brand can make towards its overall profitability. In their efforts to improve their own margins, pressure is brought to bear on manufacturers to increase their rate of sale by the use of sales promotional devices. Manufacturers have little choice but to agree, or face the possibility of having their product removed from the shelves. Moreover, since the appeal of retailer products is often based on price, sales promotion has provided manufacturers with the ability to adjust the retail price to the consumer – in the short term – and minimize the differential. Undoubtedly, a major influence has been the desire for short-term sales achievement in its own right. Sales promotion techniques are often seen as a means of achieving the increases in sales volume with the benefit of improved market share and, importantly, the ability to utilize excess manufacturing capacity. Since sales promotion potentially has an immediate impact on consumer sales, there has been a tendency for product managers to turn to these techniques in order to achieve their sales objectives. At the same time, pressure on margins has made for closer attention to the detail of the achievement of costeffective sales volume. Since the results of the application of many promotional devices can be predicted with a high degree of accuracy, product management can be confident in their volume forecasts. Similarly, with the increasing costs of other forms of marketing communications, especially that of advertising, management has turned to areas which are perceived to be more cost-effective – especially for the achievement of short-term sales. The progressive fragmentation of audiences and the increase in media costs have tipped the balance in favour of sales promotion techniques which are more likely to deliver demonstrable results. A further factor is the growing belief of product and sales management in their ability to handle the techniques of sales promotion. Unlike other areas of marketing communications, sales promotion is rarely subjected to the same level of internal debate as would be the case with, say, advertising. In a crowded promotional environment it is challenging to retain loyal consumers. Too frequent use of promotions may evoke indifferent attitude among consumers or shape deal to deal buying. Predictability of promotions (promotions linked to festivals like Diwali) may result in coinciding purchase with such promotions leading to loss of margin an opportunity loss

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BRAND OF BIG BAZAAR

sell at full price. It is very much essential to plan such activities which will synergies company’s positioning and advertising campaign efforts rather than erode brand image or equity. Therefore sales promotion is a double edged sword; if a proper use is made it can cut competition and at the same time cluttering of promotion may affect the brand image. So it becomes extremely important that company takes a proper care in implementing and evaluating the performance sales from time to time. This project is mainly concerned with evaluating such promotion which are running in the big bazaar on the own brand tasty treat. Under the brand Tasty Treat big bazaar offers many products to the customer but this study concentrates mainly on Biscuits, snacks (chips) and Mango juice, which are currently being run on promotions.

TOPIC:
EVALUATION OF SALES PROMOTION – A case study of TASTY TREAT a brand of BIG BAZAAR.

Need for study:
Sales promotion has some specific objective, a product is given on discount by spending the money from the company’s profit pocket i.e a company has to compromise on its margin. Also it involves time which is very precious to any company especially in retail industry, and as it affects the brand image, sales promotion has to be evaluated from time to time. As there are many ways to understand loyalty, there are also many ways to influence and improve loyalty. Companies that measure customers beyond mere financial performance levels can be shown to have stronger performance than non-measurement-driven companies in multiple key indicators. A comparison of measurement-managed versus non-measurementmanaged organizations showed that (a) 83 percent of the measurement-managed group were raced in the top third of their respective Indus-tries as compared to 52 percent for others, (b) 74 percent are recognized as industry leaders versus only 44 percent for non-measurement organizations, (c) 80 percent realized a three-year positive return on investments as compared to 45 percent for non-measurement-managed organizations, and (d) a whopping 97 percent of measurement-managed organizations experienced success in their last major change effort compared to a 55-perccnt success rate for others.
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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

Objectives of the study: 1. To evaluate sales promotion with respect to tasty treat brand. 2. To study customer’s perception about sales promotion of tasty treat brand. 3. To study customer’s preferences towards the promoted brands. 4. To study customer satisfaction about the sales promotion of tasty treat brand.
5. To identify the factor influencing the brand choice.

RESEARCH METOHODLOGY The data was collected in two ways, which are detailed below: • • PRIMARY DATA: The Data collected for a specific purpose for the first time is Original known as Primary Data. The primary data was basically collected through Questionnaire Method. The Questionnaire method is a powerful tool to collect the information a structured Questionnaire involves in asking the questions in a prearranged order. This research contained a questionnaire that had structured (prearranged order), open ended (free answer questions) and close ended (limited answer can be given) questions. Some were also dichotomous questions are made best use. The survey was conducted within the store, responses were collected from the individuals who visit to big bazaar. Apart from the questionnaire the information is collected from the sales forces who are the best source to get such information. A interaction with the executives, assistant department managers, department managers and officials within the store is a vital information, which is also made use of in the study. SECONDARY DATA: • The data that is collected from the published sources i.e. not originally collected for the first time is called secondary data. During the research the secondary data was collected from Company website, Customer data base, Company report, Books and publications, Related information from net Primary Data Secondary Data

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Selection of sample • • •
•

Population : Hubli-Dharwad Sample size : 100 Sample method : Random Sample Area of survey: In store (BIG BAZAAR).

Measurement and analysis technique • • Simple percentage method Graphical representation using data code sheet

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BRAND OF BIG BAZAAR

CHAPTER – II
INDUSTRY PROFILE COMPANY PROFILE CONCEPTUAL FRAME WORK

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BRAND OF BIG BAZAAR

INDUSTRY PROFILE
Background The Indian retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. India’s retail sector is wearing new clothes and with a three-year compounded annual growth rate of 46.64 per cent, retail is the fastest growing sector in the Indian economy. Traditional markets are making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike, introducing the Indian consumer to an unparalleled shopping experience. The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers like the traditional family run stores and corner stores. The organized retail however is at a very nascent stage though attempts are being made to increase its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunity for prospective new players. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of India’s GDP. Comparative Penetration of Organised Retail (in %)

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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR Source: Ernst &Young, the Great Indian Retail Story, 2006

India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank 3rd by 2010 just behind US and China. On one hand where markets in Asian giants like China are getting saturated, the AT Kearney's 2006 Global Retail Development Index (GRDI), for the second consecutive year Placed India the top retail investment destination among the 30 emerging markets across the world. Over the past few years, the retail sales in India are hovering around 33-35 per cent of GDP as compared to around 20 per cent in the US. The table gives the picture of India’s retail trade as compared to the US and China. Retail Trade – India, US and China Trade Employment Shops Organized sector share India China US (US$ billion) 180-394 360 3800 ( %) 7 12 12.6-16 (million) 12 2.7 15.3 ( %) 2-3 20 80

Source: The Economist, 2006

The last few years witnessed immense growth by this sector, the key drivers being changing consumer profile and demographics, increase in the number of international brands available in the Indian market, economic implications of the Government increasing urbanization, credit availability, improvement in the infrastructure, increasing investments in technology and real estate building a world class shopping environment for the consumers. In order to keep pace with the increasing demand, there has been a hectic activity in terms of entry of international labels, expansion plans, and focus on technology, operations and processes. This has lead to more complex relationships involving suppliers, third party distributors and retailers, which can be dealt with the help of an efficient supply chain. A proper supply chain will help meet the competition head-on, manage stock availability; supplier relations, new value-added services, cost cutting and most importantly reduce the wastage levels in fresh produce.

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Large Indian players like Pantaloons, Reliance, Ambanis, K Rahejas, Bharti AirTel, ITC and many others are making significant investments in this sector leading to emergence of big retailers who can bargain with suppliers to reap economies of scale. Hence, discounting is becoming an accepted practice. Proper infrastructure is a pre-requisite in retailing, which would help to modernize India and facilitate rapid economic growth. This would help in efficient delivery of goods and value-added services to the consumer making a higher contribution to the GDP. International retailers see India as the last retailing frontier left as the China’s retail sector is becoming saturated. However, the Indian Government restrictions on the FDI are creating ripples among the international players like Walmart, Tesco and many other retail giants struggling to enter Indian markets. As of now the Government has allowed only 51 per cent FDI in the sector to ‘one-brand’ shops like Nike, Reebok etc. However, other international players are taking alternative routes to enter the Indian retail market indirectly via strategic licensing agreement, franchisee agreement and cash and carry wholesale trading (since 100 per cent FDI is allowed in wholesale trading). Current Status India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010. The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is huge-by 2010, organised retail is expected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3 per cent which at present is estimated to be $ 6 billion, according to the Study undertaken by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon. Organised retail in India has the potential to add over Rs. 2,000 billion (US$45 billion) business by the Year 2010 generating employment for some 2.5 million people in various retail operations and over 10 million additional workforces in retail support activities including contract production & processing, supply chain & logistics, retail real estate development & management etc. It is estimated that it will cross the $650-billion mark by 2011, with an already estimated investment of around $421 billion slated for the next four years.
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Organized Retail Penetration across categories (%)

Source: E&Y, the Great Indian Retail Story, 2006

As noticed in the figure above, the Organized Retail Penetration (ORP) is the highest in footwear with 22 per cent followed by clothing. Though food and grocery account for largest share of retail spend by the consumer at about 76 per cent, only 1 per cent of this market is in the organized sector. However, it has been estimated that this segment would multiply five times taking the share of the organized market to 30 percent in the coming years.

Segment analysis
The structure of Indian retail is developing rapidly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150 new shopping malls by 2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to co-exist with the modern formats of retailing. Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby kiranas viz. Kolam for daily use. With the introduction of organized retail, it has been noticed that the sale of Basmati rice has gone up by four times than it was a few years back; as a superior quality rice (Basmati) is now available at almost the same price as the normal rice at a local kirana. Thus, the way a product is displayed and promoted influences its sales. If the consumption continues to grow this way it can be said that the local market would go through a metamorphoses of a change and the local stores would soon become the things of the past or restricted to last minute unplanned buying.
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Food and grocery retail The food business in India is largely unorganized adding up to barely Rs.400 billion, with other large players adding another 50 per cent to that. The All India food consumption is close to Rs.9,000 billion, with the total urban consumption being around Rs.3,300 billion. This means that aggregate revenues of large food players is currently only 5 per cent of the total Indian market, and around 15-20 per cent of total urban food consumption. Most food is sold in the local ‘wet’ market, vendors, roadside push cart sellers or tiny kirana stores. According to McKinsey report, the share of an Indian household's spending on food is one of the highest in the world, with 48 per cent of income being spent on food and beverages. Apparel retail The ready-mades and western outfits are growing at 40-45 per cent annually, as the market teems up with international brands and new entrants entering this segment creating an Rs.5 billion market for the premium grooming segment. The past few years has seen the sector aligning itself with global trends with retailing companies like Pantaloons, Shoppers’ stop and Crossroads entering the fray to entice the middle class. However, it is estimated that this segment would grow to Rs. 3 billion in the next three years. Gems and Jewellery retail The gems and jewellery market is the key emerging area, accounting for a high proportion of retail spends. India is the largest consumer of gold in the world with an estimated annual consumption of 1000 tonnes, considering actual imports and recycled gold. The market for jewellery is estimated as upwards of Rs. 650 billion. Pharmaceutical retail The pharma retailing is estimated at about Rs. 300 billion, with 15 per cent of the 51 lakh retail stores in India being chemists. Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food, apparel etc). A few corporates who have already forayed into this segment include Dr Morepen (with Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4 from Global Healthline Pvt Ltd, and the recently launched CRS Health from SAK Industries. In the south, RPG group’s Health & Glow is already in this category, though it is not a pure play pharma retailer but more in the health and beauty care business.

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Music Retail The size of the Indian music industry, as per this Images-KSA Study, is estimated at Rs.11 billion of which about 36 percent is consumed by the pirated market and organized music retailing constitutes about 14 percent, equivalent to Rs.1.5 billion. Book retail The book industry is estimated at over Rs. 30 billion out of which organized retail accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to be emerging with text and curriculum books accounting to about 50 per cent of the total sales. The gifting habit in India is catching on fast with books enjoying a significant share, thus expecting this sector to grow by 15 per cent annually. Consumer durables retail The consumer durables market can be stratified into consumer electronics comprising of TV sets, audio systems, VCD players and others; and appliances like washing machines, microwave ovens, air conditioners (A/Cs). The existing size of this sector stands at an estimated US$ 4.5 Billion with organized retailing being at 5 per cent. RETAILING FORMATS Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats primarily due to the convenience factor. The organized segments typically comprise of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and timely promotional campaigns. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The Government also stands to gain through more efficient collection of tax revenues. Along with the modern retail formats, the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct to home service. Network marketing has been growing quite fast and has a few large players today. Gas
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stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. At present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-a-million or more. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years. TYPES OF RETAIL FORMATS Specialty Store: Narrow product line with deep assortment, viz apparel stores, book stores etc. A clothing store would be a single line store, men's clothing store would be limited line store & men's custom-shirt store would be a super specialty store. Example: The limited, Body Shop. Departmental Store: Several product lines-typically clothing, household goods, home furnishings- with each line operated as a separate department managed by specialist buyers or merchandisers. Example: Sears, Bloomingdale’s. Supermarkets: Relatively large, low-cost, low-margin, high volume, self-service operation designed to serve total needs for food, laundry & household maintenance products. Example: Kroger, Safeway. Convenience Stores: Relatively small store located near residential area, open long hours, seven days a week and carrying a limited line of high-turnover convenience products at slightly higher prices.Example: 7-Eleven, Circle K. Discount Store: Standard merchandise sold at lower prices with lower margins and higher volumes. True discount stores regularly sell merchandise at lower prices and offer mostly national brands. Example: Wal-Mart, Kmart. Retail Organization mainly falls into 4 major categories 1. Corporate chains: Example > Pantaloons, Westside 2. Retail Co-operative: Example > Amul, Samavaika, Khadi Gram Yudog 3. Consumer Co-operative: Example > Apna Bazar 4. Franchise Organization: Example > Monginis, Café Coffee day.

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Off-price retailer: Merchandise bought at less than regular wholesale prices & sold at less than retail; often-leftover goods, overruns and irregulars obtained at reduced prices from manufacturers or other retailers. Factory outlets are owned and operated by manufacturers and normally carry the manufacturer's surplus, discontinued or irregular goods. Example: Mikasa(dinnerware), Dexter (shoes) Independent off-price retailers are owned & run by entrepreneurs or by divisions of larger retail corporations. Example: T.J.Maxx, Filene's Basement. Warehouse clubs (or wholesale clubs) sell a limited selection of brand name grocery items, appliances, clothing and other goods sold at deep discounts to members who pay an annual membership fees. Warehouse clubs serve small businesses & group members from government agencies, nonprofit organizations and some large corporations. They operate in huge, lowoverhead, warehouse like facilities & offer few frills. They offer rock bottom prices- typically 20% to 40% below super market and discount stores prices but make no home deliveries and accept no credit cards. Example: Sam's Clubs, Max Clubs. Superstore: Averages 35,000 square feet of selling space traditionally aimed at meeting consumers' total needs for routinely purchased food and non food items. Usually offer services such as laundry, dry cleaning, shoe repair, check cashing & bill paying. A new group called "category killers" carries a deep assortment in a particular category & a knowledgeable staff. Example: Borders books & Music, IKEA. Combination stores are a diversification of the supermarket store into the growing drug-andprescription field. Combination food & drug stores average 55,000 square feet of selling space. Example: Jewel & Osco stores. Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket, discount & warehouse retailing principles. Product assortment goes beyond routinely purchased goods & includes furniture, large & small appliances, clothing items and many other items. Bulk display & minimum handling by store personnel with discounts offered to customers who are willing to carry heavy appliances and furniture out of the store. Hypermarkets originated in France. Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain), Meijer's (Netherlands)

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Traditionally, the small store (kirana) retailing has been one of the easiest ways to generate self-employment, as it requires minimum investments in terms of land, labour and capital. These stores are not affected by the modern retailing as it is still considered very convenient to shop. In order to keep pace with the modern formats, kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc. The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores. Looking at the vast opportunity in this sector, big players like Pantaloons, Reliance and K Rahejas has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities. List of retailers that have come with new formats Retailer Pantaloon Shopper’s Stop Ebony Crossword Piramyd Subhiksha Vitan Foodworld Globus Bombay Bazaar Efoodmart Metro S Kumar’s Current Format Own brand store Department Store Department Store Large bookstore Department Store Supermarket Supermarket Food supermarket Department Store New Formats,Experimenting with Hypermarket Quasi-mall Quasi-mall, smaller outlets, adding food retail Corner shops Quasi-mall, food retail Considering moving to self-service Suburban discount store Hyper market, Foodworld express Small fashion stores Aggregation of Kiranas Aggregation of Kiranas Cash and Carry Discount Store

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Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros. In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India. Merger and acquisition activity: India witnessed a record number of M&A deals in the first half of 2006, which were collectively worth US$ 25.6 billion. A significant number of deals have being carried out Corporate Catalyst India A report on Indian Retail Industry in the Indian retail sector in the past few months in order to acquire a larger share in the growing domestic market and to compete against the prospective global and domestic players. The table below shows some recent deals that have taken place in the Indian retail sector:
Year Acquired/ JV Company/Target 2005 2005 2005 Liberty Shoes Indus – League Clothing Odyssey India Deccan Chronicle Holdings 2005 2006 Landmark Bistro Hospitality 2006
Indus League Clothing (Future group company)

Acquirer

Nature of Business

Stake (%) 51 68 100

Consideration (US$ million) 3 5 14

Future group Future group

Retail (Footwear) Retail clothing Leisure retail chain (books, music, toys) Books, music, Accessories Restaurant (Food retail)

Tata Trent TGI Friday’s

74 25

24 N/A

Etam group, France

Lingerie and women’s wear retailing

50 (JV)

8

Source: PricewaterhouseCoppers, Asia-Pacific M&A bulletin, Mid year 2006. COMPETITION OVERVIEW
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Pantaloon Retail Pantaloon Retail (India) Limited, is India’s leading retail company with presence across multiple lines of businesses. The company owns and manages multiple retail formats that cater to a wide cross-section of the Indian society and is able to capture almost the entire consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the company operates through 6 million square feet of retail space, has over 140 stores across 72 cities in India and employs over 30,000 people. The company registered a turnover of Rs 20.19 billion for FY 2005-06. Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that combines the look and feel of Indian bazaars, with aspects of modern retail, like choice, convenience and hygiene. The group’s subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. The group also has joint venture companies with a number of partners including French retailer Etam group, Lee Cooper, Manipal Healthcare, Talwalkar’s, Gini & Jony and Liberty Shoes. Planet Retail, a group company owns the franchisee of international brands like Marks & Spencer, Debenhams, Next and Guess in India. Lifestyle International Lifestyle International Holdings Ltd’s principal activity is the operation of lifestyle department store and retail outlets. It focuses on high-end department store format. As of December 31, 2005, Lifestyle International operated its retailing business through two brand names, SOGO and Jiuguang. The SOGO Department Stores consists of the Company's flagship department store, SOGO CWB, in Causeway Bay, Hong Kong, and the Tsimshatsui store, which features a slightly different format that targets younger group of customers. The Jiuguang Department Store, which is located in Shanghai, has a similar business format as that of the SOGO store. During the year ended December 31, 2005, it launched SOGO CLUB, a lifestyle service center. Some of the Company’s subsidiaries include Asia Kinetic Limited, Congenial Company Limited, Eastlord Development Limited, Everwin Worldwide Limited and Fine Shine Limited. RPG Retail RPG Enterprises is one of India’s largest business conglomerates, with a turnover of US$ 1.65 billion (Rs 7,472 crore) and assets worth US$ 1.8 billion. Since its inception in 1979, RPG Enterprises has been one of the fastest growing groups in India with more than 20 companies
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operating successfully in 7 business sectors: Retail, IT & Communications, Entertainment, Power, Transmission, Tyres and Life Sciences. Spencer’s retail is the largest supermarket chain in India. Spencer’s retail offers the complete gamut of products & durables ranging from bread to bed covers; from toothpaste to television. Spencer’s today is operating across 80 stores spread across 20 cities in the country with a retail trading area of more than half a million square feet, and rapidly growing. Spencer’s Retail is located in various parts of India like Chennai, Hyderabad, Vizag, Bangalore, Mumbai, Aurangabad, Pune, Ghaziabad, Faridabad, Delhi, Cochin, Trivandrum and many more to come by this financial year. Shopper’s Stop The foundation of Shoppers’ Stop was laid on October 27, 1991 by the K. Raheja Corp. group of companies. From its inception, Shoppers’ Stop has progressed from being a single brand shop to becoming a Fashion & Lifestyle store for the family. Shoppers’ Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). The IGDS consists of 29 experienced retailers from all over the world, which include established stores like Selfridges (England), Karstadt (Germany), Shanghai No. 1 (China), Matahari (Indonesia), Takashimaya (Japan), C K Tang (Singapore), Manor (Switzerland) and Lamcy Plaza (Dubai). This membership is restricted to one member organization per country/region. Trent (Tata) Trent (Tata) was established in 1998, Trent operates some of the nation’s largest and fastest growing retail store chains. A beginning was made in 1998 with Westside, a lifestyle retail chain, which was followed up in 2004 with Star India Bazaar, a hypermarket with a large assortment of products at the lowest prices. In 2005, it acquired Landmark, India’s largest book and music retailer. In a recently signed deal, Trent has agreed to anchor 12 malls set up by DLF Universal Ltd across the country, at its Westside, Landmark and Star India Bazaar outlets. This amounts to about 27 locations, totaling to about a million square feet of space. Vivek Ltd Vivek Limited, is the largest Consumer Electronics & Home Appliances retail chain in India, with 14 world class showrooms in Chennai, Bangalore and Salem; covering a retail space area of over 1,00,000 sq. ft and a turnover of over Rs. 1 billion (US $ 23 Million). Its brand, VIVEKS, is now a household name. The group’s turnover, comprising of interests in distribution of consumer
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products; finance, safe deposit lockers; property development and real estate, is about 2 Billion (US $ 46 Million). Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in Andhra Pradesh. The company is working on a plan to open three retail outlets in Mysore, Hubli and Mangalore in Karnataka and in Hyderabad, Vijayawada and Visakhapatnam in Andhra Pradesh. Viveks currently has 22 showrooms in 5 cities. INVESTMENT POLICY AND INITIATIVES FDI Policy in the Retail Sector: India has kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in single-brand retail with prior Government permission. FDI is also allowed in the wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is already operating through the cash-and-carry wholesale mode. The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community. Government is considering opening up of the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment. Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods, electronics and stationery is also being contemplated. The Government has to walk a tightrope to ensure a `level playing field' for everyone. The policy of permitting 51 per cent FDI in singlebrand product retailing has led to the entry of only a few global brands such as Nike (footwear), Louis Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear), Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down furniture), Argenterie Greggio (silverware, cutlery, traditional home accessories and gift items) and Toyota (retail trading of cars), into retail trading. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to make a presence through retailing directly.

Business models for entry in Indian markets
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Due to the FDI restrictions the international players are looking for alternative avenues to enter the Indian markets. However FDI restrictions in retailing have not deterred prominent international players from setting up shops in India. In recent developments, the Australian retail giant Woolworth Ltd made in innovative entry in India’s retail space, with India’s Tata group. The Tata group has floated Infiniti Retail Ltd, in venture with which will sell consumer goods and electronics across the country. Infiniti Retail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusion of Rs 4 billion. This Tata retail venture joined hands with Australian retail giant Woolworths Ltd, which currently operates more than 2,000 stores in 12 different formats. While Infiniti will own and run retail operations in India, Woolworths, which has attained notable success in selling electronics and consumer goods through its Dick Smith Electronics chain, will provide technical support and strategic sourcing facilities from its global network. At present entry into India’s retail sector can be done in multi branding also which has been opened for FDI very recent but previously there are three different routes through which FDI flows in the Indian retail sector. The chart below shows the current formats permitted by the Government of India for the international players.

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Current entry options for foreign players Franchise agreements • Most widely used entry route by multinational retailers • Fast food retailer Domino’s entered India through master franchise root while Pizza Hut entered through regional franchisee Cash and Carry wholesale trading • 100% FDI is allowed in wholesale trading which involves building of a large distribution infrastructure to assist local manufacturers • The wholesaler deals only with smaller retailers and not consumers • Metro AG of Germany was the first significant global player to enter India through this route Strategic licensing agreements • Foreign company enters into a licensing agreement with a domestic retailer • Mango, the Spanisn apparel brand has entered India through this route with an agreement with Piramyd, Mumbai • SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd

COMPANY PROFILE
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BOARD OF DIRECTORS OF FUTURE GROUP Mr. Kishore Biyani Mr. Gopikishan Biyani Mr. Rakesh Biyani Mr. Shailesh Haribhakti Mr. S. Doreswamy Dr. Darlie Koshy Mr. Anil Harish Ms. Anju Poddar Ms. Bala Deshpande Mr. Ved Prakash Arya Group Vision Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in the most profitable manner. GROUP MISSION We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. Managing Director & FUTURE GROUP CEO Wholetime Director Wholetime Director Director Director Director Director Director Director Director

CORE VALUE
•

Indianness: confidence in ourselves.
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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR • • • • • • •

Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.

Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million square feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000 people. The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The company also operates an online portal, futurebazaar.com. Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited. This entity has been created keeping in mind the growth and the current size of the company’s value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail space of over 6 million square feet. As a focussed entity driving the growth of the group's value retail business, Future Value Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders and communities across the country and shape the growth of modern retail in India. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and eZone focused on catering to the consumer electronics segment. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

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FUTURE GROUP Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. The group’s speciality retail formats include supermarket chain - Food Bazaar, sportswear retailer Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and rural retail chain Aadhaar, among others. It also operates popular shopping portal Future Group believes in developing strong insights on Indian consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’ Persons constituting “Group” coming within the definition of “Group” for the purpose of Regulations 3(1)(e) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, includes the following persons: 1. Mr. Kishore Biyani 2. Mr. Gopikishan Biyani 3. Mr. Laxminarayan Biyani 4. Mr. Vijay Biyani 5. Mr. Sunil Biyani 6. Mr. Anil Biyani 7. Mr. Rakesh Biyani 8. Ms. Ashni Biyani 9. Mr. Vivek Biyani 11. Pantaloon Industries Limited 12. Varnish Trading Private Limited 13. Manz Retail Private Limited 14. Erudite Trading Private Limited 15. Chaste Investrade Private Limited 16. Future Realtors India Private Limited 17. Future Capital Investment Private Limited 18. Future Ideas Company Limited 19. Akar Estate & Finance Private Limited
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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
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10. PFH Entertainment Limited SUBSIDIARIES AND ASSOCIATES FUTURE GROUP has four subsidiaries (i) Home Solutions Retail (India) Limited (“HSRIL”) (ii) PFH Investment Advisory Company Limited (“PIACL”) (iii) PAN India Restaurants Limited (“PIRL”) (iv) Pantaloon Food Product (India) Limited (“PFPIL”) I. Home Solutions Retail (India) Limited Home Solutions Retail (India) Limited was incorporated under the Companies Act, 1956 on October 4, 2004 and has its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari Vikhroli Link Road, Jogeshwari (East), Mumbai 400 060 . The main business of Home Solutions Retail (India) Limited is to act as general retailers in the home textiles and furnishing business. The stores will offer customised home solutions by in-house designers, fabrics, tailoring facilities and innovative services like budget homes etc. It will cater to home management requirements and products, including furnishings and textiles, furniture, consumer electronics, home electricals and home services II. PFH Investment Advisory Company Limited PFH Investment Advisory Company Limited was incorporated under the Companies Act, 1956 on December 31,2004. Its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari Vikhroli Link Road,Jogeshwari (East), Mumbai 400 060. The main business of PFH Investment Advisory Company Limited is to carry on the business of providing financial investment advisory services, management and facilitation services, including but not limited to identifying investment opportunities, providing investment recommendations and consultancy service for making available infrastructure to venture capital funds, including the trustees, beneficiaries and contributories of such fund, other funds, trusts, investment companies, joint ventures, corporate, institutional, group and individual investors.

III PAN India Restaurants Limited PAN India Restaurants Limited was incorporated under the Companies Act, 1956 on February 7 ,
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2005. Its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari Vikhroli Link Road, Jogeshwari (East), Mumbai 400 060 . The main business of PAN India Restaurants Limited is to carry on the business of quick service restaurants and food courts through restaurants, food court, hotels, eating houses, dhabas, bars, cafeterias, resorts, club houses, roadhouses, motels, holiday camps, caravans, site and apartment housekeeper, retail format stores, hypermarkets, supermarkets, mega stores/discount stores, departmental stores, shoppers plaza, direct to home and mail order catalogue through internet and other forms for all food products and services and amusement and recreation parks/facilities, and casinos and gaming facilities of every kind or sort including providing all attendant conveniences, amenities and facilities adjunct and to serve food and food products. IV Pantaloon Food Product (India) Limited Pantaloon Food Product (India) Limited was incorporated under the Companies Act, 1956 on April 13, 2005. Its registered office is at Pantaloon Knowledge House, Shyam Nagar, Off. Jogeshwari Vikhroli Link Road,Jogeshwari (East), Mumbai 400 060 . The main business of Pantaloon Food Product (India) Limited is to manufacture and supply food products. Associates Companies I) Kshitij Venture Capital Fund Kshitij Venture Capital Fund (“KVCF”) is a domestic venture capital fund registered with the Securities and Exchange Board of India. KVCF was set up under an indenture of trust dated December 15, 2004. While PRIL is the Settlor, IL&FS Trust Company Limited is the the trustees. PFH Investment Advisory Company Limited was appointed as the investment advisor to KVCF to manage the business affairs of the Trust vide Investment Advisory Agreement dated April 14, 2005. KVCF has been set up to invest in entities engaged in the real estate sector dealing more specifically in immovable property of any kind and any rights therein. KVCF has limited operations, hence the financials are not available. II) Galaxy Entertainment Corporation Limited Galaxy Entertainment Corporation Limited (“Galaxy”) was incorporated under Companies
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Act, 1956 on August 13, 1981. Its registered office is at 54, Free Press Marg, 215 Nariman Point, Mumbai 400 021. We have acquired 20,00,000 equity shares constituting 15.73% stake in the company through a Share Subscription Agreement dated March 4, 2005. Galaxy is currently engaged in the business of leisure and entertainment, running restaurants, bowling alley and various games. Galaxy has two subsidiaries viz; Galaxy Rain Restaurants Private Limited and Ceezee Foods Private Limited. Galaxy has two subsidiaries: a) Ceeze Foods Private Limited Ceeze Foods Private (“CFPL”) was incorporated under Companies Act, 1956 on April 13, 2000. Its registered office is at A-602, Prathamesh, Raghuvanshi Mills Compound, Lower Parel, Mumbai – 400 013. The Company is engaged in the business of running directly or indirectly, through franchising or otherwise within India or outside India restaurants, hotels, shopping malls, swimming pools, clubs and other recreational facilities of all kinds. b) Galaxy Rain Restaurants Private Limited Galaxy Rain Restaurants Private Limited was incorporated under Companies Act, 1956 on April 12, 2000. Its registered office is at A-602, Prathamesh, Raghuvanshi Mills Compound, Lower Parel, Mumbai – 400 013. Galaxy Rain Restaurants Private Limited is a wholly owned subsidiary of Galaxy. The main object of the Company is to carry on business of restaurants, cafes, refreshments rooms, clubs and casinos of every sort and kind, to establish shops, canteens, kitchens, and any other establishments, for this purpose and for the sale of food and drink of every sort and kind and to arrange for and provide all manner of entertainment, amusements, recreation and instruction for the public.

JOINT VENTURE COMPANIES I. Planet Sports Private Limited (India)
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Planet Sports Private Limited (India) was incorporated under the Companies Act, 1956 on November 15,1999. Its registered office is at 7A & 8A, Gaurav Towers, Malviya Nagar. Jaipur, Rajasthan. They have acquired 28,40,880 equity shares constituting 49% stake in the company vide Joint Venture agreement dated February 2, 2005. Planet Sports Private Limited (India) is a sports, leisure and lifestyle retail store. There are 25 Planet Sports Stores in Inida. The product range includes footwear, apparel, caps, accessories, tennis racquets, golf clubs and balls, swimwear and accessories, water sports etc. Planet sports is the exclusive franchisee of The Athelete’s Foot-footwear chain in India. Planet Sports wholly owned subsidiary, Supreme Trade Links Limited is the exclusive franchisee for Marks & Spencer stores in India. Besides, it is the exclusive licensee and distributor for brands such as Puma and Speedo in India. II. Proposed Joint Venture with Liberty Shoes Limited An MOU has been signed with Liberty Shoes Limited on August 29, 2005 to enter into a Joint Venture for setting up a chain of stores for retailing of footwear and other accessories. For this purpose the new company is proposed to be set up , with an authorized share capital of Rs. 250 million. Under the terms of the Agreement, company will acquire a 51% stake in the new company by subscribing to 12.75 million equity shares of Rs.10 each at par aggregating to Rs. 127.5 million as equity contribution. BIG BAZAAR Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the Pantaloon Group. It works on same the economy model as Wal-Mart and has had considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd. Big Bazaar stores in Metros have a gaming area and kids play area for entertainment. Major cities where stores are located are, Agra, Ahmadabad, Allahabad, Ambala, Asansol, Bangalore, Bhubaneswar, Chennai, Coimbatore, Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon, Hyderabad, Indore, Lucknow, Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot, Surat, Thane, Thiruvananthapuram, Vishakhapatnam. Big Bazaar is not just another hypermarket. It caters to every need of customer’s family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, customer will definitely get the best products at the best prices -- that’s what Big Bazaar guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery,
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sports goods and much more at prices that will surprise customer. And this is just the beginning. Big Bazaar plans to add much more to complete customers shopping experience. Store study Big Bazaar Akshay centre, Akshay Park GOKUL ROAD, HUBLI-580030 Phone No: 0836-4266555 This store is of 2 flour and divided into 2 levels based on the nature of products. There are 21 departments in this store and 120 Human Resource employed. As this store is big enough with 2 levels and 21 departments has long product range and product depth. Ones a customer get inside the store he will find all kinds of products available that may be Food item, Cosmetic, Electronic, Garments, Furniture etc. Because of these features it has a very good reputation in that area and customers who are residing far away and in other areas they also visit the store. Level 1 Departments 1) Depot: 2) NBD (New Business Development) 3) Gold Bazaar 4) Mobile Bazaar 5) Star Sitara 6) Shringar 7) Ladies Department 8) Men’s Department 9) Furniture Department 10) Footwear Bazaar 11) Home Décor 12) Home line 13) Toys Dept 14) Kids department
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15) Electronic Bazaar 16) Luggage Level 2 Food Bazaar 1) Beverages 2) Confectionaries 3) Fruits & Vegetables 4) Staples 5) Process Dept Non-food Dept 6) Home care 7) Personal care 8) Plastics, Utensils, Crockery (PUC) SECURITY MEASURES Pantaloon Apparel, food, etc. POS: Home-grown solution SAP Retail BI and Data warehouse: Congo’s (process of evaluation) handheld scanners at Food Bazaar VPN: Company-wide network linking all the branchesThey have loss prevention cell (LPC) that will be looking after the safety measures in the organizations. There are 5 members in each store. They have 3 types of tags Hard tag process will be taken by the LPC. Process: In case any theft is done in big bazaar they will catch the person & they will fine him and they will fill one form that he had done the mistake & they will take all 10 fingers thumb impression. Departmental Managers There are 24 departments in this store like Electronic dept, Depot dept, NBD dept, Mobile Bazaar Dept, Star sitar Dept, PUC Dept, Ladies Dept, Men’s Dept, Furniture Dept, Footwear Dept, and
KOUSALI INSTITUTE OF MANAGEMEMENT STUDIES, DHARWAD

Soft tag

String tag

These tags will be attached to the materials. If any person will take that without paying bill some

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Home Décor Dept. Each department will be assigned with targets, which have to be achieved within the assigned period that may be of Daily, Weekly, monthly and yearly.Each department has a department Manager & Assist DM. Their job is concerned mainly with sales. They look after customer’s orders delivery post sale service if any etc. All Dept managers ADM, Team members work under coordination & cooperation.They are also responsible for the placing orders of the goods incase of shortage here they have to send indent specifying the amount of products needed at the store. They have to report periodically the performance of the department to the store manager. Administration Store administration comes under Store Manager its functions are store maintenance, House Keeping, Security etc. Store manager has to control all the activities within the store. He has to communicate all the departmental managers and assistance departmental managers regarding any new offers, regarding their targets etc. Sore manager has to see the operation at the store is being performed in coordination and cooperation he has to communicate with the corporate office regarding any changes being applied at the store. Information Technology This department is responsible for the maintenance of the systems of the stores. All billing machines their functioning networking with the master machine etc. If there is any problem with the machine then this department comes into function. Cashing Dept This department is responsible for the collection of sales amount i.e. cash sales, Credit sales, etc under this department all billing machines of the stores comes. The sales amount collected throughout the day by the cashier’s has to be submitted to this department. Marketing This dept is responsible for the marketing of the store in different media like Television, Newspaper, and Holdings etc. the authorized person has to visit different companies and has to look after for tie-ups etc. The executives arranges rally’s Visual Merchandise This department is responsible for the product arrangement at the store with respect to their nature. The basic function of this dept is it divides the store into several departments based on the nature of the product and within the department it decides how the products should be arranged by keeping in mind the customer should not suffer.
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Human Resource Human Resource basically works for the welfare of the employees. It acts to organize the manpower and work to increase productivity of the employees. Basically Human Resource performs the functions of Recruitment, Hiring, Induction, Training and development, Performance appraisal of the employees. Human Resource studies and involves in inter life cycle of the employee from his joining the organization to till his end from the organization. CSD (Customer Service Desk) This is the separate unit, which is mainly focuses on customer service like if the customer find difficulty in finding any product, Customer complaints any replacement, Customer assistance etc. Supply chain management: Company’s supply chain was split into the broad categories of fashion, food and general merchandise, leading to a more focused approach to businesses, improved service levels, better customization of logistic and supply chain related needs, and finally deliverables. Further, with new concepts and lines of business being included during the year, as well as strategic alliances with other companies, the process of gradually integrating them have either been completed or close to completion. The existing supply chain design consists of a Master Distribution Centre (MDC) and city warehouses upgraded to Regional Distribution Centers (RDCs) and additional Distribution Centers (DCs). The company had one MDC and 16 RDCs and DCs The company has also appointed leading international and domestic players in the warehouse infrastructure and technology front. The company also introduced the concept of reverse logistics that looks at setting up a process to transfer finished goods from the consumption point to the point of origin. This reduces wastage and can lead to significant cost savings. On the technology front, all the existing MDCs, RDCs and DCs are live on SAP, thereby facilitating standardization, real time data management and reporting, as well as optimum operational efficiencies.

CONCEPTUAL FRAMEWORK SALES PROMOTION:

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It a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by customer. Whereas advertising offers reason to buy, sales promotion offers an incentive to buy. Major consumer promotion tools are 1. Samples: offer of a free amount of a product or service delivered door to door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer. 2. Coupons: certificate entitling the bearer to a stated saving on the purchase of a specified product, mailed, enclosed in other products or attached to them or inserted in a magazine and newspapers ads. 3. Cash refund offers(rebate): provide a price reduction after purchase rather than at the retail shop. Consumer sends a specified “proof of purchase” to the manufacture who refunds part of the purchase price by mail. 4. Price packs(cents-off deals): offers to consumers of savings off the regular price of a product, flagged on the label or package. A reduced-price pack is a single package sold at a reduced price (such as two for the price of one). A banded pack is two related products banded together (such as a toothbrush and toothpaste). 5. Premiums(gifts): Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. A with-pack premium accompanies the product inside or on the package. A free in the mail premium is mailed to consumers who send in a proof of purchase, such as a box top or upc code. A self liquidating premium is sold below its normal retail price to consumers who request it. 6. Frequency programs: Programs providing rewards related to the consumer’s frequency and intensity in purchasing the company’s products or services. 7. Prizes (contests, sweepstakes, games): Prizes are offers of the chance to win cash, trips, or merchandise as a result of purchasing something. A contest calls for consumers to submit an entry to be examined by a panel of judges who will select the best entries. A sweepstakes asks consumers to submit their names in a drawing. A game presents consumers with something every time they buy – bingo numbers, missing letters—which might help them win a prize. 8. Patronage Awards: Values in cash or in other forms that are proportional to patronage of a certain vendor or group vendors.
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9. Free Trails: Inviting prospective purchasers to try the product without cost in the hope that they will buy. 10. Product Warranties: Explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customer’s money during a specified period. 11. Tie-in-Promotions: Two or more brands or companies team up on coupons, refunds, and contests to increase pulling power. 12. Cross-Promotions: Using one brand to advertise another noncompeting brand. 13. Point-of-Purchase (P-O-P) Displays and Demonstrations: POP displays and demonstrations take place at the point of purchase or sale.

Objectives:
Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trial, incentive type promotions are used to attract new tries, to reward loyal customers, and to increase the repurchase rates of occasional users. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premiums. If some of them would not have otherwise tried the brand, promotion can yield long term increases in market share. Sales promotions in market of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term. In market of high brand dissimilarity, they may be able to alter market shares permanently. In addition to brand switching, consumers may engage in stockpiling- purchasing earlier than usual (purchase acceleration) or purchasing extra quantities. A number of sales promotion benefits flow to manufacturers and consumers. Manufacturers can adjust to short term variations in supply and demand and test how high a list price they can charge, because they can always discount it. Promotions induce consumers to try new products and lead to more varied retail formats, such as everyday low pricing and promotional pricing. For retailers, promotions may increases sales of complementary categories for example cake mix promotions may drive frosting sales and also induces store switching means more customer are attracted to the stores. Sales promotion usually causes sales to increase than a normal. Impact of sales promotion

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Usage of sales promotion activities has a direct impact on behavior as it motivates a consumer to buy now rather than in future, enhances value of an offer temporarily till the promotion period, encourages switching, reinforce or reward loyalty etc. Broadly, objectives set for these activities are; i)to generate store traffic, ii) to move excess inventory, iii)to enhance store image and iv)to create a price image( high or low). Traffic building is achieved by special event promotions like Diwali, Rakshabandhan promotions; inventory reduction through end of season sale; creation and building store image through feature advertising and displays and joint promotions and price image by highlighting the discounts. It helps consumer reduce not only financial risk but also psychological and social risk by making consumer confident of his/her purchase, conformation to group norms by shopping at famous stores/brands and possibility of acquiring well known branded apparel during promotions. Promotions may induce non buyers to walk in to the store and loyalty programmes may encourage to buy more, more often or upgrade to better quality. Exciting promotions also have tendency to generate positive word of mouth and help consumer feel a smart shopper. Thus not only utilitarian benefits like, saving of money, time or quality upgradation but hedonic benefits like feeling confident, feeling of excitement and entertainment etc. Managerial challenges It is evident that use of sales promotions is quite widespread and variety of activities are used to address variety of objectives; clear off old stock, load the consumer, encourage brand switching, to reward the loyal user, to create excitement at point of purchase etc. In a crowded promotional environment it is challenging to retain loyal consumers. Too frequent use of promotions may evoke indifferent attitude among consumers or shape deal to deal buying. Predictability of promotions (promotions linked to festivals like Diwali) may result in coinciding purchase with such promotions leading to loss of margin an opportunity loss to sell at full price. A manager needs to be aware of these problems and have to plan strategies to overcome them. Loyalty card programmes require good administrative support and good database records and data mining abilities to exploit to the fullest. Also IT investments are required to keep records and evaluate the impact. Big players like Pantaloon have a policy to invest in IT. They have implemented SAP so database is available. Such investments in decision support systems may

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give competitive edge to retailers. For that one would need trained people to handle decision support systems. Manager needs to strike a delicate balance between percentage split across proactive and reactive promotions. If it gives a first mover advantage then manager needs to allocate higher proportion of budget to proactive promotions. Mangers also need to plan such activities which will synergies company’s positioning and advertising campaign efforts rather than erode brand image or equity. He needs to understand critical role of integrated marketing communications which will signal unified message and image about the brand/ store. To what extent promotional calendars need to be unified across markets for the chain and to what extent local managers need to be given freedom to plan their promotions in local areas is a constant struggle between head quarter and regional chain stores. Execution of these activities also require proper coordination of selling effort, availability of promoted merchandise and managing product line pricing. At times, if certain item in a product line is promoted, it may disturb the logic of line pricing. Do these customers remain loyal because of inertia? Or is there an impact from promotions that do target loyal customers' additions of services or enlistment in new programs or extended time periods? Can promotions act to positively affect brand loyalty? This requires a consensus view of loyalty, which may be difficult to achieve. Many measures and concepts have been used to evaluate loyalty in academic and practitioner studies. These have included (a) the percentage of consumers buying a brand, (b) the number of purchases per buyer, (c) the percentage who continue to buy the brand (repeat buyers), (d) the percentage who are 100 percent loyal, and (e) the percentage who also buy other specific brands (duplicate buyers). It may be that a better descriptor of behavior in the marketplace is "polygamous loyalty" in which customers are "loyal" to a set of brands. Examples include having a set of preferred restaurants or hotels, membership in multiple reward programs within the same product class, and even having service with multiple providers although one could satisfy multiple needs (for example, land-line telephone, wireless phone, broadband Internet, and television programming can come from one or separate providers to one household). A brand-loyal user of a product would likely respond differently to a sales promotion than a customer who typically purchases a competing brand. This changes the strategy of sales promotion. One goal may be directed to brand switchers, those not yet strongly loyal to one given brand. These customers may be newer to the product category
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and not yet have the experience on which to base loyalty. They may switch as a response to market efforts by various brands or as a way to collect information from experience. Indeed, within most product categories it is rare to find consumers who exclusively purchase one brand, and thus a brand loyal consumer may be considered one who (usually) purchases a given brand. A potential additional goal of sales promotion is to create an impact on brand equity and thus loyalty to the brand. One study, described below, evaluated whether sales promotions consisting of bonus merchandise with each order would reinvigorate purchases by "lapsed" customers. Sales promotion and Brand loyalty In the long term, brand loyalty is perceived to be the key to sustainable competitive advantage. Brand loyalty can be defined as the consumer's desire to buy the same brand on a regular basis, just as people are more likely now than ever to change jobs, homes, brand choice is also in question. New products, more media communicating choices, wider variety of distribution channels, and greater choice in financing lead to difficulty in maintaining loyalty. Shari Caldron attributes this decline in brand loyalty to rising consumer price sensitivity, a decrease in advertising effectiveness, and an increase in new brands. As a result of these changes, marketers have become interested in the potential effect of price promotions on brand trial, repurchase intentions, and long-term brand loyalty.

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CHAPTER III
ANALYSIS AND INTERPRETATION

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ANALYSIS & INTERPRETATION
1) Classification based on Age of Respondents:

Grouping the respondents will help in understanding common behavior of each group. It is a well known fact that behavior of an individual is changes based on his age and many other factors. Normally an individual from first group i.e below 20 years of age, have a tendency to follow either of their parents and while buying a products like biscuits, snacks and juice the decision of this age group member is most of the times is final. This group is taste oriented and usually do not considers the price or promotional factor in their buying decisions. As an individual grows older and joins second group i.e 21-30 years of age, more than 80% of this population will be earning lively hood therefore they understand importance of price and promotion. Here the individual starts making the choice among the set of brands and he sticks to this choice for a long time. The third group which majorly includes the a individual with a family where he has to make a decision for his young ones, these individuals become health conscious and these do not give much importance to sales promotion. The fourth group which includes individuals who have crossed the age of 40 has well defined brand choice which is very hard to change. Here the individual will have tried many brands and came to conclusion that a particular brand is best to him, sales promotion has very little effect on him.
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2. Classification based on the occupation of the Respondents:

An individual is influenced greatly by his surrounding, environment where spend most of the time. In the case students they spend more time in schools and collages where they interact with mates and eventually adopt certain character which will also be reflected in their buying behavior. The end results is they buy the product which they are aware of or which their mates discuss when they meet. In this group the impact of word of mouth is very high and in 80-90% of case the decision is predetermined. In case of house wives time spent will be more with the family and these are price and health conscious minds they are influenced by the promotions and their friends suggestions (word of mouth). Working professional group is found spending major time in work place and are exposed to huge information, these are product oriented buyers, if they are satisfied with the product properties they can become a loyal customer. In case of business persons their major time is spent in work place and they understand to good extent the sales promotion and are influenced by promotion.

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3. Classification based on the monthly income Respondents:

As it is said that BIG BAZAAR is the value for money format where customer is promised of giving the product within their budget. Now grouping the respondents based on the monthly income will provide a clear reason for why customers visit the value for money format hyper market. An individual belonging to the first group are price oriented usually look for sales promotion. Due to present situation saving money out of salary is given higher importance and they look for offers most of the time, in order to save money they are ready to compromise on brand. Individual of second group are more or less behave in same manner as group one. Group three is taste and brand oriented in nature. Group four include mainly persons having their own business, working professional and house wives they look for the premium brand and perceived quality.

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4. Top Three Factors that customer consider while buying:

Customer tastes and preferences keep changing from time to time and are very difficult to identify the exact set of attributes that they see in a product while buying the attributes do not exists singly but with one or more other attribute. Highest number respondents voted for taste mainly because the research is on consuming product now one conclude that a product with accepted taste should move faster than non accepted ones but in actual the first consideration alone will not cause for buying a product. Second highest voted attributes are brand name and quality; here both are perceived values which a company builds through its various ad campaigns or promotional campaigns the effectiveness of such campaigns can be measured from the response i.e product movements in the market. As the people of Hubli-Dharwad are price sensitive they definitely look for low price or offers. It becomes indeed very challenging to create a premium quality premium brand perception. Using sales promotion tools will create such image but extreme huge care has to be taken.

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5a. Customer preferences in biscuits:

From the above it is clear that most people prefer Parle over other yet sales they will buy other brands also. As I have said early customers are price sensitive they tend to prefer Parle over other because of its very low price. There are another set of customer who buy good day, will try tasty treat at least ones. Now from this graph it can be said preference pattern of most of the people is first is Parle G, second Good Day, third sunfeast, at the last Tasty Treat. Here customer who do not prefer Tasty Treat includes loyal customer of Parle, Good day, non users of Tasty Treat, aware of Tasty Treat.

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5b. Customer preference in snacks:

Customer prefer Lays, Kurkure, Bingo over Tasty Treat even when it is run on offers, customer prefer not to buy Tasty treat snacks this reaction may have come due to many factors, such as previous experience i.e some may have tasted it may not have liked it, buying a snacks of Rs5 customer do not give much involvement in making a decision. Low involvement of customer may cause in ignoring the promotion.

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5c. Customer preference in Mango juice:

Here it can be seen that slice and maaza is close competent due to which fruity is pushed to third choice and many people do not prefer Tasty Treat.

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6. Reason for this particular pattern:

Since in all the three category most of customer did not prefer Tasty Treat but prefer other brands this is mainly because of taste that customers consider very much important while buying biscuits, snacks or mango juice.

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7. Awareness about the Tasty Treat:

Awareness about the brand Tasty Treat is only 52% among the respondent. A health awareness percentage is 70% among , here this 52% respondents include non users, other brand loyal, brand switcher, first time buyers. The remaining respondent consists of first time visitor to store, a person who have already decided pattern of purchase.

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8. Buyers:

This graph shows that percentage of buyers is less than non buyer. But those who buy they purchase greater quantity which satisfies the sales management target. 48% of this included the persons who are not aware such brands and remaining non buyer are ones who have tasted and did not like certain attribute.

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9. Awareness regarding the offers:

One question arises here is when a customer is unaware of offers how will he considers that brand while making a purchase decision?, now as said early decision does not have much involvement of a customer and duration of decision is very low. So communicating become very much essential in such a situations otherwise the effect will be seen in sales. Here the awareness regarding the promotion of Tasty Treat is very low.

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10. Willingness to buy:

Since awareness regarding the offers is very low out of the aware persons few are ready to buy or are regular buyer of Tasty Treat. Unwillingness must be converted to willingness.

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11. Customer who are willing to buy without offers also:

As the perception in customer regarding the Tasty Treat is “a product with offers”, so most of the customer tend to buy Tasty Treat only when the offer is given on them i.e they want to be rewarded all the time. In the process of buying they tend to become loyal to Tasty Treat which will definitely take more time and money.

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12. Reason for such non buying:

Customer who agreed to buy without offers are denoted by value 0, these are conditional buyer i.e when they get satisfied by the product they do not wait for offers they will buy it. The major reason for non buying is unawareness about the brand, about the products.

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13. Customer Satisfaction level regarding offers (sales promotion):

Since percentage of non buyers are more they tend not to comment on satisfaction about the offers. But still the percentage of highly satisfied and satisfied is more which means that this section is a sales generating population. Customer refused to respond to satisfaction regarding offers is mainly because they are buyers of brand other than Tasty Treat.

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OBSERVED FACTS: The interaction with the Customer, Department manager, Assistant department managers and sales representatives has revealed the following amazing facts; 1. The medium of communication regarding the private brands or own brands is only the instore announcements. Which means the product awareness is very low, because a person comes to know about a product only when he/she visits to big bazaar, no other means of getting information of the product(s) and promotions. The company depends mainly on word of mouth, but how much this is affective, how many pass the message of promotion to their friend or relatives are researchable questions. 2. Usually sales promotion is found more on Wednesday, Saturday and Sunday. Because on these days walk-ins will be more than usual in order to push more products into the hands of customer this technique is applied. Sales promotion is often starts in the middle week of the month i.e second or third week, this is mainly intended to bring more walk-ins to the stores. 3. Point of purchase display- Each brand is given a specific shelf space where products of that brand are displayed. They are arranged in specific manner i.e from top to bottom in an increasing order of price, low price will be placed at the top and high price will be place at the bottom. To the extreme left the market leader in that particular product is placed followed by the private brand. Sales promotion is communicated through the signage which is displayed exactly in front of promoted product. 4. The products are arranged based on first in first out, the stocks which have come first are displayed in the front and new ones are pushed back. By such arrangement the customers are expected to pick the front packets. 5. Since involvement of a customer in deciding to buy products like biscuits, snacks and mango juice is very low, therefore sales representative is not allocated to this section. Now influence of offers exists to certain percent on such decision, sales promotion attracts the new buyers, brand switcher, trial buyers etc. 6. The company is innovative only by offering discount on MRP; it has gained a set of customers who look for offers. But no other areas like creating the awareness, communicating offer, promotional campaigns etc are addressed.
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7. Since margin from such product is not the major revenue generator for the company but if handled with proper care can yield a healthy margin. Sales promotion is opportunity to create, build and maintain the customer for life time which makes sure that sale happens even when sales promotion is not given. At the same time the opportunity is lost by the company to sell a product at mrp. 8. From the interaction with respondent it became very clear that when brands in a same product category are promoted they do not change their preferences. For example suppose brands in biscuit category like Parle-g, Sunfeast, Goodday and Tasty Treat are promoted by discounting Rs 2 on MRP, than the buying pattern of customer is expected to remain same. Which means that each brand should be promoted in an unique way.

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CHAPTER IV
FINDINGS SUGGESTIONS

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FINDINGS:
1) The people belonging to the age group of below 20 and 20-30 constitute the major

customer for such products. Also this is time an individual makes choice of his own influenced by many factors, at this age brand switching happens and this will create a customer to the company for long period.
2) Majority of customers surveyed are looking for value for money. Their main focus is on

taste, price and perceived quality; here quality means the brand image in the customers mind.
3) From the survey it is evident that offer is the major reason for respondent to buy Tasty

Treat, Price (low) is another factor which stimulates the respondent.
4) Offer influences the respondent during their purchase. 5) The survey reveals that while choosing brand from biscuits, snacks or mango juice

category, tasty treat is given last preference. This is mainly because of lack of awareness, their previous experience about the brand, their perception about the brand.
6) The brand preference pattern remains same if the entire available brand on display is

promoted. Only the unique promotion is influential on customers.
7) Most of the customers are influenced by in store offers by Sign boards, offers announced

in the store stimulate the respondent to buy the particular product.
8) The main cause for selecting a brand from biscuits, snacks or mango juice category is

their previous experience i.e Taste
9) The percentage of awareness about the brand and sales promotion is 52% and 24%

respectively. But this 24% is not generating the sales to the company i.e only 16% are willing to buy the product when sales promotion is running. From the company’s profitability point of view this figure is low.

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10)

The sales quantity of own brand has increased in this year at the same time the

company has lost the margin for the sales. The company has generated sales by using every day promotion technique i.e this own brand is sold on discounts throughout the year which has resulted in increase in sales quantity.
11)

30% of customers are willing to buy the brand without promotion. This section of

customer also includes the people who will buy if they get the taste and good quality.
12)

No means of communication regarding the Tasty Treat is done. Only visitor gets a

chance to know about the brand. The main reason for not preferring the Tasty Treat is “unawareness factor”.
13)

Most of the time sales promotions are not noticed by many customers, this can be

seen in case of loyal customer of other brand.
14)

42% of customers are satisfied with the present sales promotion. Remaining 52%

of customer did not notice the promotion mainly because of other brand loyal, perceived value of the brand.
15)

The survey reveals that customer are price sensitive, they look for offers for the

brand other than Tasty Treat most of the time.

SUGGESTIONS:
1. Since offers are influential should kept at intervals so that there is no clouding of offers in the minds of customers, should not be a long term gap.
2. Unique and innovative (new) promotional: From the interaction with respondent it is

very clear that when brands in a same product category are promoted customers do not change their preferences. For example suppose brands in biscuit category like Parle-g, Sunfeast, Goodday and Tasty Treat are promoted by discounting Rs 2 on MRP, then the buying pattern of customer is expected to remain same. Therefore an Unique and innovative (new) promotional tool should be made best use.

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3. Brand awareness: Since the study reveals that the awareness of brand is very low, the

best way to create awareness about brand is in store publicity, which will create awareness about brand and also about offers. be diverted to this brand.
4. A campaign of TRIAL TESTERS, where the visiting customers are asked to try the

So here advantage is in store

announcement are a bit of controlled form of marketing wherein the incoming traffic can

product and are asked for feed backs.
5. Brand building: By increasing expenditure on building brand awareness the gains a long

term customers rather than short term buyer by using sales promotions. The long term loyalty will benefit the company in future i.e these loyal customers will make the brand sustain in market.
6. Variety of tastes: From the survey it is found that taste is major cause for brand

selection; therefore three to four varieties of tastes should be launched. 7. Sales promotion no doubt increased the quantity of sales but it is an opportunity lost to sell at MRP. This is push strategy where the company tries to push their product through different promotional tools, too much promotion will create sort of doubt in the minds of customers. So instead pull strategy where the customer comes searching for the brand.
8. Products in price range: As said in the findings, the respondents surveyed are price

sensitive and most of them are looking for low price. The products introduced in all price ranges with innovations will benefit the company not only to gain profit but also it will create a niche for the company, which by itself will generate the revenue.
9. Point of purchase display is critical issue and it must be handled with care. Innovative

techniques must be used to display brand and along with in store announcement will increase the sales, even without promotional tools.
10. Projection on packet: The study shows that quality, taste and price is rated high in

factors that customers take into consideration while buying. Now the quality is the perceived value of the brand and the value can be projected on a packet; packaging should be such that it communicates the Taste, premium quality etc.
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BRAND OF BIG BAZAAR

BIBLIOGRAPHY

Web sites
http://business.mapsofindia.com/india-retail-industry www.pantaloon.com www.google.com www.answers.com

Books
Company books Annual report of the company

Text Books
o Marketing Management - Philip Kotler – 13TH Edition – Sales promotion – Page

number 501 to 503 RESEARCH AND PUBLICATION:

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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

•

Sales Promotion Practices in Apparel Retail Sector and Challenges Ahead – PREETA H VYAS – 02/011/2007.

ANNEXURE
QUESTIONNAIRE
• Personal Details. Name (optional): _______________________ Age: ________

Occupation:
Student ( ) Business ( ) Housewife ( ) employed ( ) Working professional ( ) other______________ Any 10,000-25,000 25,000-40,000 Self

Income:
above 40,000

Below 10,000

1). Please mention the top three factors that you see in a product. a). ____________ b). ____________ c). ____________

2). Rank the following brands based on your preferences when offers are not running? (scale 1to 4; 1for first preference 2 for second preference & so on) BISCUIT SNACKS BEVERAGES (MANGO JUICE)
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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

Parle-G Sunfeast Goodday Tasty Treat

( ( ( (

) ) ) )

Lays Kurkure Bingo Tasty Treat

( ( ( (

) ) ) )

Maaza Slice Fruity Tasty Treat

( ( ( (

) ) ) )

3). What is the cause for above choice? a). Price c). Taste b).Quality d)._____________(other please specify)

4). Are you aware of TASTY TREAT? Yes No

5). Do you use/buy products of TASTY TREAT? Yes No

6). Are you aware of offers of TASTY TREAT? Yes No

7). Did you took the advantage of these offers? Yes No

8). How many packets of TASTY TREAT BRAND did you buy with current offers? __________ 9). Which will be 2nd brand of your choice after TASTY TREAT? BISCUIT Parle-G Sunfeast Goodday SNACKS Lays Kurkure Bingo BEVERAGES (MANGO JUICE) Maaza Slice Fruity

10).Would you like to buy TASTY TREAT brand without offers also? Yes No (if YES, then do not answer question11)

11) Why are you not buying the TASTY TREAT? a). Price is high b).Quality is not good
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EVALUATION OF SALES PROMOTION-A CASE STUDY OF TASTY TREAT
BRAND OF BIG BAZAAR

c). Taste is not good

d).Unaware of it

e)._____________(other please specify) 12). Please shows us your satisfaction about the offers of TASTY TREAT 1 Highly satisfied 2 Satisfied 3 Neutral 4 Dissatisfied 5 Highly Dissatisfied

13) Any valuable suggestion beneficiary _________________________________________________________________________ _________________________________________________________________________

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