A PROJECT REPORT ON

A STUDY OF SALES PROMOTION TOOLS FOR STAPLE FOODS

PROJECT GUIDE DR. A. K. SAPRE (PROFESSOR)

SUBMITTED BY MOHIT KUMAR (IM-2K8-61) MBA MS 5YRS VIII SEM

SUBMITTED TO INTERNATIONAL INSTITUTE OF PROFFESIONAL STUDIES ( D.A.V.V.)

CERTIFICATE
This is to certify that MR. MOHIT KUMAR the student of MBA MS 5YRS of INTERNATIONAL INSTITUTE OF PROFESSIONAL STUDIES has completed his Project A STUDY OF SALES PROMOTION TOOLS FOR STAPLE FOODS in the year 2012 in partial fulfillment of DAVV University requirements for the award of the degree of Master of Business Administration.

Director DR.B.K.TRIPATHI

Project Guide DR.A.K.SAPRE (PROFESSOR)

Date:

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

IIPS (D.A.V.V.) INDORE

MOHIT KUMAR

ACKNOWLEDGEMENT
Every study requires a guidance of someone who is working in that field. Firstly we would like to thank Director Sir DR.B.K.TRIPATHI for providing an opportunity of preparing a Project Report and allowing us to use the resources of the institution during this project. We are extremely thankful to our Project Guide, Prof A.K.SAPRE of IIPS for their precious guidance regarding the preparation of the Project Report. Their guidance has proved to be useful and without them, the preparation of this report might not have been possible. We are also thankful to the other faculty members of IIPS for extending their valuable support for this project. We also extend our sincere thanks to the Respondents, who helped us during the course of our project and for their gracious attitude. We would like to take this opportunity to extend our warm thoughts to those who helped me in making this project a wonderful experience. Last but not the least; we would also like to thank our family for their support and encouragement.

INDEX
TOPICS 1. INTRODUCTION
1.1 STAPLE FOODS

PAGE NO

2. OBJECTIVES OF STUDY 3. LITERATURE REVIEW 4. WHAT IS SALES PROMOTION

4.1 MEANING OF SALES PROMOTION 4.2 IMPORTANCE OF SALES PROMOTION

5. AN OVERVIEW OF SALESPROMOTION TOOLS 6. RESEARCH METHODOLOGY 7. ANALYSIS & FINDINGS

7.1 CUSTOMER 7.2 TRADERS/RETAILERS

8. LIMITATION 9. RECOMMENDATION 10. CONCLUSION 11. BIBLIOGRAPHY 12. ANNEXTURE: QUETIONNAIRE

1. INTRODUCTION
Consumer goods and services are getting more sophisticated these days. Different varieties of products and services addressing varying consumer needs are presented in an increasingly competitive market place, going beyond the traditional efficacy claims of the lower spectra of the Maslows needs hierarchy.

Retailers, as well as some of their partnering manufacturers, try to view for the share of voice in the market with heavy advertising and promotion to break through the clusters and eventually to gain more substantial share of the market. Sales promotion acts as a competitive tool which provides consumers an extra incentive to purchase one brand over the others at one retailer over the others. Now, sales promotions has become an integral part of the marketing strategies of many retailers, and the successful deployment and implementation of sales promotion tactics at the right time can lead to substantive growth in sales transactions and sales revenues. Sales promotion consists of a diverse collection of incentive tools to elicit a quicker or greater consumer purchases in a short period of time. Here are some examples: direct discount, coupon, bonus pack, buy-one-get-one-free offer, free premium, stamp redemption, contest, game and sweepstake, and free sample. The aim of this study was mainly to gather updated information on consumers preferences and behavioural responses towards various sales promotion tools in case of staple goods.

1.1 STAPLE FOODS

A staple food is one that is eaten regularly and in such quantities that it constitutes a dominant portion of a diet, and that supplies a high proportion of energy and nutrient needs. Most people live on a diet based on at most a small number of staples. Staple foods vary from place to place, but are typically inexpensive or readily available foods that supply one or more of the three macronutrients needed for survival and health: carbohydrate, protein, and fat. Typical examples include grains, tubers, legumes, or seeds. The staple food of a specific society may be eaten as often as every day, or every meal. Early civilizations valued staple foods because, in addition to providing necessary nutrition, they can usually be stored for a long period of time without decay.

Rice

Kidney Beans

Edamame - green soybeans

Cassava

Various Types of Potatoes

Maize.

Millet

Quinoa

Some foods are only staples during seasons of shortage, such as dry seasons or cold-temperate winters, against which times harvests have been stored; during seasons of plenty wider choices of foods may be available .Most staple foods derive either from cereals such as wheat, barley, rye, maize, or rice, or starchy tubers or root vegetables such as potatoes, yams, taro, and cassava. Other staple foods include pulses (dried legumes), sago (derived from the pith of the sago palm tree), and fruits such as breadfruit and plantains. Staple foods may also contain, depending on the region, sorghum, olive oil, coconut oil and sugar.

2. OBJECTIVES OF STUDY
1. To study Consumer preferences with respect to sales promotion tools in Staple Foods. 2. To study the effects of sales promotions in Staple Foods like brand switching, unplanned shopping, increase in sales etc. 3. To study Traders/Retailers preferences with respect to sales promotion tools in Staple Foods. 4. To study how sales promotion tools affects Traders/Retailers.

3. LITERATURE REVIEW
Role of Sales Promotion in the purchase decision of consumer durable products. In this research paper Dr. Vijay Pithadia & Aashish Sharma (2005) have highlighted the effectiveness and applicability factors of sales promotion techniques in the purchase decision of consumer durable goods. How do these techniques affect the cognitive, affective and connective stages? In this research effects techniques has compared and suggested a balancing role SP techniques in the promotion of products. In Demand creation through right sales promotion management study Dr. Kavita Kshatriya (2009) has assessed the impact of sales promotion on different product categories and the impact of brand loyalty of consumers in spite of l u r i n g p r o mo t i o n s c h e me s b y c o mp e t i t o r s .

According to the 20th Annual Survey of Promotional Practices which was conducted by Cox Direct, coupon, price promotions and good value influence 75% to 80% of consumers brand choice decisions.

Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun (2002) studied Buyer seller relationships for promotional support for success. The purpose of the study was to define promotional support categories offered to apparel retailers by manufacturers, to identify the retailer's perceptions of the offering frequency and importance of the promotional support, and to investigate the relationship between offering frequency and perceptions of importance.

Paley (1989) regarded sales promotions as activities of corporate sales Promotion Mix which are not able to be generalized to the activities such as advertising, member sales, or packaging. The purpose of sale promotion is to motivate salespeople, retailers, and end consumers to match corporate plans through temporary incentives.

Kotler (1994) stated that sales promotions were composed of various incentive tools that were utilized to motivate consumers or retailers to make large amounts of purchase on certain product in advance and with rapidity.

Shimp (1997) suggested that sales promotion was an incentive which induced distributive traders and consumers to purchase products, or encouraged salespersons to actively increase sales promotion. OGiunn et al., (2000) defined sales promotion as the utilization of incentive techniques creating a concept of greater brand values among consumers and distributors. The main purpose is to generate short-term increase in sales by the means of encouragement of larger purchases or motivation of temporary use.

Eagel and Blackwell (2001) noted that sales promotion, a set of repaid marketing activities, involves stimulating consumers and distributive members. It centers on objects (groups) via incentives and motivations which are relevant to the economy (Eagel & Blackwell, 2001).

Kotler (2003) noted that sales promotions that mostly last for a short term is composed of a diverse collection of incentive tools whose aim was to stimulate a greater or quicker purchase, as well as a trial.

4. WHAT IS SALES PROMOTION

Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

4.1 MEANING OF SALES PROMOTION

Suppose you go to the market to buy soap. The shopkeeper suggests that if you buy two soap cakes, an extra soap cake will be given to you free of cost under buy 2 get 3 scheme. You feel attracted to buy as by doing so you are saving money on soap. Moreover, soap is an item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product. Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about lakhpati bano, win a tour to Singapore, 30% extra in a pack of one kg, scratch the card and win a prize etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighbouring markets notices of winter sale, summer sale, trade fairs, discount up to 50% and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate the customers to buy more and thus, it increases sales of the product. This approach of selling goods is known as Sales Promotion.

Personal selling involves face-to-face contact with specific individuals, while advertising is directed towards a large number of potential customers. They also help in increasing sales of goods. Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for sales promotion. Personal selling can as well include communication of the incentives to individual customers. But, sales promotion differs from advertising and personal selling in terms of its approach and technique. Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market. Thus, sales promotion consists of all activities other than advertising and personal selling that help to increase sales of a particular commodity.

4.2 IMPORTANCE OF SALES PROMOTION

The business world today is a world of competition. A business cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers may spend a lot on advertising and personal selling. Still the product may not sell. So incentives need to be offered to attract customers to buy the product. Thus, sales promotion is important to increase the sale of any product. Let us discuss the importance of sales promotion from the point of view of manufacturers and consumers.

From the point of view of manufacturers Sales promotion is important for manufacturers because i. it helps to increase sales in a competitive market and thus, increases profits; ii. it helps to introduce new products in the market by drawing the attention of potential customers; iii. when a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off; iv. it stabilizes sales volume by keeping its customers with them. In the age of competition it is quite much possible that a customer may change his/her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers.

From the point of view of consumers Sales promotion is important for consumers because i. the consumer gets the product at a cheaper rate; ii. it gives financial benefit to the customers by way of providing prizes and sending them to visit different places; iii. the consumer gets all information about the quality, features and uses of different products; iv. certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and v. it helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.

5. AN OVERVIEW OF SALESPROMOTION TOOLS

To increase the sale of any product manufactures or producers adopt different measures like sample, gift, bonus, and many more. These are known as tools or techniques or methods of sales promotion. Let us know more about some of the commonly used tools of sales promotion. (i) Free samples: You might have received free samples of shampoo, washing powder, coffee powder, etc. while purchasing various items from the market. Sometimes these free samples are also distributed by the shopkeeper even without purchasing any item from his shop. These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers. (ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with Bourn vita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg, are the examples of premium or bonus given free with the purchase of a product. They are effective in inducing consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers.

(iii) Exchange schemes: It refers to offering exchange of old product for a new product at a price less than the original price of the product. This is useful for drawing attention to product improvement. Bring your old mixer-cum-juicer and exchange it for a new one just by paying Rs.500 or exchange your black and white television with a colour television are various popular examples of exchange scheme. (iv) Price-off offer: Under this offer, products are sold at a price lower than the original price. Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of 250 grams of Taj Mahal tea, Rs. 1000 off on cooler etc. are some of the common schemes. This type of scheme is designed to boost up sales in offseason and sometimes while introducing a new product in the market. (v) Coupons: Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. For example, you might have come across coupons like, show this and get Rs. 15 off on purchase of 5 kg of Annapurna Atta. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products.

(vi) Fairs and Exhibitions: Fairs and exhibitions may be organised at local, regional, national or international level to introduce new products, demonstrate the products and to explain special features and usefulness of the products. Goods are displayed and demonstrated and their sale is also conducted at a reasonable discount. (vii) Trading stamps: In case of some specific products trading stamps are distributed among the customers according to the value of their purchase. The customers are required to collect these stamps of sufficient value within a particular period in order to avail of some benefits. This tool induces customers to buy that product more frequently to collect the stamps of required value. (viii) Scratch and win offer: To induce the customer to buy a particular product scratch and win scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers. (ix) Money Back offer: Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. This creates confidence among the customers with regard to the quality of the product. This technique is particularly useful while introducing new products in the market.

6. RESEARCH METHODOLOGY
Research Design Research design selected for this project is Descriptive.

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

Sampling Information 1. Target population: The population for this research study consists of the consumers and retailers of Indore. 2. Sampling unit: In this study the sampling unit is individual consumer and retailers/traders. 3. Sample size: 20 consumers 20 retailers. 4. Sampling method: The sample is selected by using non probability convenience-sampling method.

7. ANALYSIS & FINDINGS (a) CUSTOMER

1. What are the sales promotion tools that are served to you by the retailers? (a) Direct price off/discount (b) Coupons (c) Bonus pack (d) Bye one get one free (e) Free premium/gifts ( ) ( ) ( ) ( ) ( )

(f) Contests, games, sweepstakes ( ) (g) Free samples (h) Others Mention Them ( )

( ) .

A survey of customers was conducted and the data obtained shows that sales promotion tools like direct price off, bye one gets one free, free premiums and gifts, bonus pack are more frequently served to the customers. The frequency of different sales promotion tools served to different customers are given as follows:

Direct Price Off/Discount Coupons Bonus Pack Bye One Get One Free Free Premium/Gifts Contests, Games, Sweepstakes Free Samples

20 8 12 16 12 3 8

Frequency Of Sales Promotion Tools Served To Consumers

Free Samples Contests,Games,Sweepstakes Free Premium/Gifts Bye One Get One Free Bonus Pack Coupons Direc Price Off/ Discount 0 5 10 15 8 20 20 25 12 3 12 16 8

2. Which type of sales promotion tools are most enjoyed by you and provides you complete satisfaction in case of Staple Foods? Direct Price Off/Discount Coupons Bonus Pack Bye One Get One Free Free Premium/Gifts Contests, Games, Sweepstakes Free Samples 4.6 2.8 3.6 4.4 3.6 3.4 4.6

Customer Enjoyment & Satisfaction Level By Use of Different Sales Promotion Tools
Free Samples Contests,Games,Sweepstakes Free Premium/Gifts Bye One Get One Free Bonus Pack Coupons Direc Price Off Discount 2.8 4.6 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 3.6 3.4 3.6 4.4 4.6

MAX SCALE = 5

From the survey we come to know that sales promotion tools like free samples, bye one get one free, direct price off/discount are customers most favourable tools & they get complete satisfaction by using them. More use of such sales promotion tools must be done to increase sales volume. Respondents rated their interest level towards 7 sales promotion tools in general on a 5-point scale, with 1 represents not interested at all and 5 represents very interested.

3. If you are given a different product with attractive sales promotion schemes other than the product that you normally use. Will you switch to the other brand with different sales promotion schemes? (a) Always ( ) (b) Sometimes (b) Never (d) Cant Say ( ) ( ) ( )

Customer's Brand Switching % by Attratives Sales Promotion Tools

Always Sometimes 0% 10% Never Can't Say

50% 40%

From the above analysis we come to know that about 40% customers are brand loyal and never switch to any other brand.10% customers dont know that they will change the brand or not. 50% of customers switch their original brand with another brand with attractive sales promotion tools. This shows that by using effective and efficient sales promotion tools we can increase our sales volume by targeting those 50% customers.

4. Which of the following Sales Promotion tools will enforce you to completely switch over another brand? Mark under the scale from 1 to 5 Direct Price Off/Discount Coupons Bonus Pack Bye One Get One Free Free Premium/Gifts Contests, Games, Sweepstakes Free Samples 3.2 2 3.2 3.6 4.4 2.8 4.2

Rating of Sales Promotion Tools That Enforce Customers to Switch Their Brand
Free Samples Contests,Games,Sweepstakes Free Premium/Gifts Bye One Get One Free Bonus Pack Coupons Direc Price Off/ Discount 0 0.5 1 1.5 2 2.5 2 3.2 3 3.5 4 4.5 5 3.2 3.6 2.8 4.4 4.2

From the above analysis we come to know that free premium/gifts (4.4), free samples (4.2), bye one get one free (3.6), are the most effective tools that enforce customers to switch their brand. With use of such tools we will be able to enforce customers to use our product for the first time. So with increase use of the above tools we can increase our sales volume.

5. What kind of Sales Promotion tools leads you to unplanned shopping of Staple Foods? Mark under the scale from 1 to 5. Direct Price Off/Discount Coupons Bonus Pack Bye One Get One Free Free Premium/Gifts Contests, Games, Sweepstakes Free Samples 3.6 1.4 2.6 4.4 4.4 2 4

Rating of Sales Promotion Tools That Leads To Unplanned Shopping

Free Samples Contests,Games,Sweepstakes Free Premium/Gifts Bye One Get One Free Bonus Pack Coupons Direc Price Off/Discount 1.4 3.6 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2.6 2 4.4 4.4 4

MAX SCALE = 5

Sales promotion tools that leads to unplanned shopping are free premium/gifts (4.4), bye one get one free (4.4), free samples (4), price off/discount (3.6). Increase use of such tools will lead to unplanned shopping of customers & these will add more consumers with our brand, also it will increase our total sales volume.

TRADERS/RETAILERS
1. Do you adopt the sales promotion tools in case of STAPLE FOODS? (a) Yes YES NO ( ) (b) No 17 3 ( )

NO 15%

YES 85%

Majority of traders use sales promotion tools for STAPLE FOODS. 85% traders use Sales Promotion Tools.

2. If you tell customers about a different product with attractive sales promotion schemes other than the product that you normally sell. Do customers switch to the other brand? (a) Always (b) Sometimes (b) Never (d) Cant Say ( ) ( ) ( ) ( )

Customer's Brand % Switching When Retailers Tell Them About Sales Promotion Tools
Always Sometimes Never Can't Say

5%

10%

40% 45%

The above analysis shows that when retailers tell customers about sales promotion tools then about 10% of customers always switch to other brands and 45% of customers switch to other brands sometimes. So we should encourage the retailers to make customers aware about the sales promotion techniques that we use for our product when a customer asks for any other brand.

3. Do these Sales promotion tools increase the sales of STAPLE FOODS products? Direct Price Off/ Discount Coupons Bonus Pack Bye One Get One Free Free Premium/Gifts Contests, Games, Sweepstakes Free Samples 4.4 2.7 3.8 4.3 3.6 2.2 3.1

Rating Of Different Sales Promotion Tools In Increases Of Sales

Free Samples Contests, Games, Sweepstakes Free Premium/Gifts Bye One Get One Free Bonus Pack Coupons Direc Price Off/ Discount 0 0.5 1 1.5 2 2.5 3 3.5 4 2.7 4.4 4.5 5 3.8 2.2 3.6 4.3 3.1

From the above analysis we come to know that sales promotion tools Discount/Direct price off (4.4), Bye one get one free (4.3), Bonus pack (3.8), Free premium (3.6), are very effective in increase of sales of product. So we must exploit these sales promotion tools to increase our sales.

4. If you are given a different product by the distributors with attractive sales promotion schemes other than the product that you normally sell. Will you switch to the other brand with different sales promotion schemes? (a) Always (b) Sometimes (b) Never (d) Cant Say Always Sometimes Never Can't Say ( ) ( ) ( ) ( ) 0 5 13 2

Brand Switch % By Traders/Retailers When They Are Given Sales Promotion Schemes
0% 10% 25% Always Sometimes Never 65% Can't Say

From the above analysis we come to know that even after providing attractive sales promotion tools about 65% of traders/retailers dont switch to other brand, the main reason behind this is customers demand for their regular product. Here product awareness is required, so that consumer can demand for the product to retailers/traders. Also efforts must be made to attract new traders by applying proper sales promotion technique.

5. Which type of sales promotion tool is used at trade level i.e. sales promotion tools for retailers, whole sellers? Price off Advertising and display allowances Free goods Store demonstration Prizes Others 20 12 2 5 4 0

Frequency Of Sales Promotion Tools Served To Retailers/Traders

Others Prizes Store demonstration Free goods Advertising and display allowances Price off 0 5 10 15 2 12 20 20 25 0 4 5

9% 12% 5% 46% Price off Advertising and display allowances Free goods 28% Store demonstration Prizes

Much focus is given to price off, advertising and display allowance and they are more served in comparison to other sales promotion tools.

6. Which type of sales promotion tools is always preferred or enjoyed by you? Price off Advertising and display allowances Free goods Store demonstration Prizes 4.8 3.8 4.3 2.6 4.1

Preference Rating Of Sales Promotion Tools

Prizes 4.1

Store demonstration

2.6

Free goods

4.3

Advertising and display allowances

3.8

Price off

4.8

The above analysis shows that price off, prizes, free goods are most preferred sales promotion tools. From previous analysis we know that Traders/Retailers dont switch to other brand easily. So these types of Sales Promotion Techniques must be used to attract new Retailers/ Traders and to retain present retailers/traders. Also from previous analysis we know that there is less focus on prizes, free goods but they are also preferred by retailers/traders. So effective measures must be taken and more use of prizes and free goods must be done to attract retailers/traders.

8. Limitations of the Study

- We considered Indore region only because of limited time duration. - Due to this, our sample size is only 20 for customers and 20 for trader/retailers, which is not very large. - All the respondents could not fill their questionnaire on their own due to language problem and also problem of time and lack of positive behavior. - Respondent may give biased answer due to lack of information about sales promotion tools. - Findings of the study are based on the assumption that the respondents have given correct information.

9. RECOMMENDATION
The findings of the empirical study indicate that unless the brand to be promoted is in the consideration set of the consumer, sales promotion by itself is unlikely to have any major impact. Clearly this shows that managers need to invest into brand building exercise so that his/her brand appears in the consideration set of the target consumers. Only after this should he spend time, money and energy on sales promotion activities. Sales promotion should not be used in isolation but need to be integrated with other tools and in line with the overall positioning of the brand. Also the importance of the role of mass media came out clearly in the study. Companies need to create sufficient awareness about sales promotion schemes through mass media in order to create awareness. Staple Foods products are low involvement products & consumers switch the product sometimes. Also the person going to the shop for the purchase of staple food product is the final decision maker of the brand. Hence it is essential that companies need to design attractive, striking, visible POPs for scheme announcements. Both retailers and consumers preferred price offs. So it is necessary that the perceived value of a free gift has to be appealing and high for the target consumers. Repetitive use of the same premium for a prolonged period may have negative effect on the loyal customers. When the company is giving its own product free as premium, it needs to ensure the quality of the product from it as it is likely to jeopardize the image of both its products.

The findings exhibited that both the retailers and consumers perceived that sales promotion activities carried out by the companies for increasing sales in short term and clearing excess stocks. What it implies is that companies need to use sales promotion synergistically and communicate so that they provide value to the target audience and enhance brand quality/image perceptions. From the study it was found that smaller retailers felt neglected and not enthused to implement the schemes, particularly when additional handling, stocking, accounting was required on the part of a retailer without compensatory margins. It can be seen that the retailer and consumer perceptions matched with respect to preferences of schemes, underlying motivations and role of mass media. This implies that the retailer would be a rich source of information about the consumer and the likely response to sales promotion activities. Developing a system to tap such responses from time to time both at retailer and consumer level would be helpful for planning future sales promotion activities. In order to build trust and commitment companies should tap preferences, perceptions of retailers as well as consumers.

10. Conclusion of the Survey

The study reflects that the use of sales promotion undeniably has increased over the years in India. Future holds lot of promise for such schemes across wider range of product-markets. With almost all companies offering similar Sales promotion Schemes as a result now marketers have to find out some innovative ways of sales promotion to differentiate from competitors. Currently Price off and Bye one get one free offers are very effective to attract the consumers towards the products. We have noted that these kind of promotional tools are useful for short term increase in sales and to induce first trial. These types of promotional schemes should be consistent and changed from time to time depending upon season and competitors schemes. With the Increasing number of supermarket, the branded packaged goods work as silent sales person. So in such stores, sales promotion plays a more effective role in stimulating consumers demands. A survey of customers was conducted and the data obtained shows that sales promotion tools like direct price off, bye one gets one free, free premiums and gifts, bonus pack are more frequently served to the customers. From the survey we come to know that sales promotion tools like free samples, bye one get one free, direct price off/discount are customers most favourable tools & they get complete satisfaction by using them. More use of such sales promotion tools must be done to increase sales volume.

Consumer posses switching behavior & free premium/gifts, free samples, bye one get one free, are the most effective tools that enforce customers to switch their brand. Retailers and Traders do not change their brand due to customers demand but are attracted and retain by sales promotion tools like prizes, price off, free goods.

11. BIBLIOGRAPHY
BOOKS Philip Kotler, Marketing Management, 11th edition, Pearson education Asia Publication. C.R.Kothari, Research Methodology methods & techniques, New Age International (p) ltd. publishers, 2nd edition. Belch & Belch, Advertising and Promotion: An Integrated Marketing Communications Perspective.

WEB SITES http://bmsr.mvaasia.com/download/Sales_Promotion_Tools_in_Retail_Sector_i n_HK_BJ.pdf http://tutor2u.net/business/marketing.as http://www.allprojectreports.com http://www.feu.edu.tw

12. ANNEXTURE: QUETIONNAIRE

QUESTIONNAIRE FOR TRADERS
1. Do you adopt the sales promotion tools in case of STAPLE FOODS? (a) Yes ( ) (b) No ( )

2. If you tell customers about a different product with attractive sales promotion schemes other than the product that you normally sell. Do customers switch to the other brand? (a) Always (b) Sometimes (b) Never (d) Cant Say ( ) ( ) ( ) ( )

3. Do these Sales promotion tools increase the sales of STAPLE FOOD products? Mark under the scale from 1 to 5
(a) Direct price off/discount (1) Totally disagree (b) Coupons (1) Totally disagree (c) Bonus pack (1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(d) Bye one get one free (1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(e) Free premium/gifts (1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(f) Contests, games, sweepstakes (1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(g) Free samples (1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

4. If you are given a different product by the distributors with attractive sales promotion schemes other than the product that you normally sell. Will you switch to the other brand with different sales promotion schemes? (a) Always (b) Sometimes (b) Never (d) Cant Say ( ) ( ) ( ) ( )

5. Which type of sales promotion tool is used at trade level i.e. sales promotion tools for retailers, whole sellers? (a) Price off (b) Advertising and display allowances (c) Free goods (d) Store demonstration (e) Prizes (f) Others ( ) ( ) ( ) ( ) ( ) ( )

Mention Them..

7. Which type of sales promotion tools is always preferred or enjoyed by you?

(a) Price off
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(b) Advertising and display allowances

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(c) Free goods

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(d) Store demonstration

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(e) Prizes
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

QUESTIONNAIRE FOR CUSTOMERS

1. What are the sales promotion tools that are served to you by the retailers? (a) Direct price off/discount (b) Coupons (c) Bonus pack (d) Bye one get one free (e) Free premium/gifts ( ) ( ) ( ) ( ) ( )

(f) Contests, games, sweepstakes ( ) (g) Free samples (h) Others Mention Them ( )

( ) .

2. Which type of sales promotion tools are most enjoyed by you and provides you complete satisfaction in case of Staple Foods? Mark under the scale of 1 to 5.
(a) Direct price off/discount
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(b) Coupons
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(c) Bonus pack

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(d) Bye one get one free

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(e) Free premium/gifts

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(f) Contests, games, sweepstakes

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(g) Free samples

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

3. If you are given a different product with attractive sales promotion schemes other than the product that you normally use. Will you switch to the other brand with different sales promotion schemes? (a) Always ( ) (b) Sometimes (b) Never (d) Cant Say ( ) ( ) ( )

4. Which of the following Sales Promotion tools will enforce you to completely switch over another brand?
(a) Direct price off/discount
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(b) Coupons
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(c) Bonus pack

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(d) Bye one get one free

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(e) Free premium/gifts

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(f) Contests, games, sweepstakes

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(g) Free samples

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

5. What kind of Sales Promotion tools leads you to unplanned shopping of Staple Foods? Mark under the scale from 1 to 5.
(a) Direct price off/discount
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(b) Coupons
(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(c) Bonus pack

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(d) Bye one get one free

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(e) Free premium/gifts

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(f) Contests, games, sweepstakes

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree

(g) Free samples

(1) Totally disagree (2) Slightly disagree (3) Neither agree nor disagree (4) Slightly agree (5) Totally agree