Summer internship in the furniture republic

“Impact of promotional activity on the sales of TFR products”

A
Project report on
Impact of promotional activity on the saleof
TFR products
Study conducted under guidance of
Mr.Aditya Gupta (Industrial mentor)
Dr.Shrutijain (Faculty mentor)

Report submitted to NIILM-CMS Greater Noida for partial fulfilment of the
requirement for PGDM (2011-13)

Submitted by:
Vikramsinghchauhan
Roll no. – 2011139
Batch – (2011-13)

Declaration

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I, the undersigned, hereby declare that the Project Report entitled “Impact of
promotional activity on the sales of TFR products”written and submitted by me to
NIILM-CMS, Greater Noida in partial fulfillment of the requirements for the
award of degree of Post Graduate Diploma in Management under the guidance of
Dr. Shruti Jain .My original work and the conclusions drawn therein are based on
the material collected by myself.

Place: Vikram Singh Chauhan

Greater NoidaStudent of NIILM-CMS

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Certificate of Completion of Internship

This is to certify that Summer Project Report on “Impact of promotional activity

on the sales of TFR products” prepared by “Vikram Singh Chauhan” Roll No.

“2011139” of PGDBM 2011-13 batch is his genuine effort under my guidance and

supervision.

Dr. Shruti Jain Vikram Singh Chauhan

Faculty Guide Student of NIILM-CMS

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INFORMATION SHEET :-

Name of the company – THE FURNITURE REPUBLIC

Address of the company – A-32, Sec.63, Noida

(off. NH-24, Opp. Indrapuram)

Phone No of company – (91) 801-020-3263

Date of commencement – 20th day of april 2012

Date of completion – 21th day of June 2012

Name of Industry Guide – Mr Adityagupta

(Founder & CEO)

Student‟s Roll No. – 2011139

Student‟s E-mail ID – Vikrams099@hotmail.com

Student‟s GSM – (91) 901-545-1181

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ACKNOWLEDGEMENT:-

A summer internship project is a golden opportunity for learning and self-
development. I consider myself very lucky and honored to have so many
wonderful people lead me through in completion of this project. Then I would
like to thank my College president
Dr. S. Neelamegham for providing me with this opportunity of having such a
wonderful company for my summer training.

My grateful thanks to Mr.Aditya Gupta, CEO “THE FURNITURE
REPUBLIC” who in spite of being extraordinarily busy with his duties, took time
out to hear, guide and keep me on the correct path. I do not know where I would
have been without him. A humble „Thank you‟ to Prof. Ms.Shruti Jain
whose patience I have probably tested to the limit. She was always so involved in
the entire process, shared her knowledge, and encouraged me to think. I would like
to thanks Ms.Meetu NIILM-CMS for her efforts and help provided to me to get
such an excellent opportunity. Last but not the least there were so many who
shared valuable information that helped in the successful completion of this
project.

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EXECUTIVE SUMMARY

The basic concept of my project “Impact of promotional activities on sales of TFR
products” was based on sales promotion and in store selling.
For this I got the training from TFR about product material such as leather,
leatherite ,type of wood.
Consumer retention is the key success factor for any competitive market. An effort
was made to ascertain and analysis customer views and preferences for the product
through process of Brand Recall. Also, a detailed study was made to understand
the performance pattern of major competitors of TFR.
In doing so, it was possible to assess the competition in the market, hence enabling
us to position ourselves more effectively and strategize on a long term basis.
During the course of this project, I was also fortunate enough to be able to study
the promotional campaigns carried out by the company.
This report contains the findings arrived after detailed analysis of the data received
after questionnaires. The study was also carried out to find out how to increase sell
of brands. We did many promotional activities such as ATL, BTL, TTL activity
and I went to various societies, corporate offices,majormetro stations for creating
brand awareness.
The promotional activities like canopy shows and broachers distribution were
carried out at greater noida. In this activity we have given live demo of household
furniture in our company demo flat at vasundhra olive county to the end user i.e.
the customers; this activity was mainly done in the indirapuram and
vasundharaandec.At sec.63. Giving them demo, and broachers, and handling there
queries regarding the Products .

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TABLE OF CONTENT:-

Table of Contents
Declaration .................................................................................................................................................. 1
INFORMATION SHEET :- ................................................................................................................................ 4
Chapter 1 – Introduction to the topic ........................................................................................................... 9
1.2 Objectives of my project .......................................................................................................................... 9
1.3 Structure of my project ............................................................................................................................ 9
Chapter 2 – Literature Review .................................................................................................................... 11
2.1 BRIEF HISTORY OFINDIAN FURNITURE INDUSTRY ................................................................................. 11
2.2 Furniture industry composition:- .................................................................................................. 11
Household furniture comprises of ............................................................................................................... 12
2.3 Market Capitalization............................................................................................................................. 13
2.4 Top leading Companies .......................................................................................................................... 14
2.5 Carrier opportunities ............................................................................................................................. 16
Chapter 3 – Companies profile .................................................................................................................... 17
3.1 Company: -THE FURNITURE REPUBLIC .................................................................................................. 17
3.1.1 MD’s message ............................................................................................................................ 17
3.1.3 MISSION .............................................................................................................................................. 18
3.2 4- P’s of furniture industry .................................................................................................................... 18
3.2.1 Products .............................................................................................................................................. 18
Household Furniture ........................................................................................................................... 19
Office Furniture ................................................................................................................................... 19
3.2.2 Price .................................................................................................................................................... 19
3.2.3 Place .................................................................................................................................................... 19
3.2.4 Promotions.......................................................................................................................................... 19
3.3 Key success factor of the company ........................................................................................................ 20
3.4 Build the brand.............................................................................................................................. 20
3.5 Understand the market................................................................................................................. 20
Chapter – 4: Milestones of company .......................................................................................................... 21
4.1 Sharda exports ................................................................................................................................. 22

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..................................................................................................................................................................... 22
4.2 IHDP (international home deco park) .................................................................................................... 23
4.3 The furniture republic (TFR)

..................................................................................................................................................................... 24
Below the line (BTL) / Above the line(ATL) / Through the line (TTL) Advertising ....................................... 40
Chapter 5 – Research Methodology ............................................................................................................ 47
Chapter 5: FINDINGS AND CONCLUSIONS .................................................................................................. 61
5.1 FINDINGS AND CONCLUSIONS ............................................................................................................... 61
Chapter 6: Limitations ................................................................................................................................. 62
Limitations ................................................................................................................................................... 62
Biblography................................................................................................................................................. 63

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Chapter 1 – Introduction to the topic
1.2 Objectives of my project

The Report will highlight the effectiveness and applicability factor of sales
promotion and advertisement techniques (BTL activity). The research study is of
empirical in nature. It has the following objectives:
o To investigate the effectiveness of sales promotion technique on purchase
decision.
o To study the effectiveness of advertising (BTL activity ) on purchase
decision.
o To understand and evaluate the scope of BTL activity and its significance in
driving the sales and the comparative study between the sales generated
from the BTL and ATL activity.
o Comparison b/w the no. of footfalls in the store due to ATL and BTL
activity and the analysis of the same.

o Understanding the needs of customers for new furniture and to facilitate
THE FURNITURE REPUBLIC to plan their future strategies accordingly.
o To increase the no of conversion of the customers visiting the OLIVE
COUNTY flat as well as The TFR by calling them and taking their feedback
so as to make them recognize and recall brand, thus enhancing the brand
equity.
o To increase the no of footfalls and the conversion ratio by making them see
the fully designed and furnished flat at Olive County which was done by
TFR.

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1.3 Structure of my project

I have divided my project report into well-defined chapters. The first chapter is an
introductory chapter that provides a background for the start of the project. It
highlights the objectives of my study & details the project structure.

The second Chapter is an overview of the India Market for past years which
include Indian stock market along with Gold ETF.

Chapter 3 gives an insight of the literature on Portfolio analysis/management. I
have included a small part explaining the basics of Portfolio management, risk v/s
return

Chapter 4 describes the different methods for evaluating the portfolios such as
Sharpe method, Treynor method, and the significance of beta. This chapter also
specifies the method used for this research

Chapter 5 states the research methodology, selection of different portfolios, and
their evaluation with the interpretation

Chapter6 another two portfolios based on systematic and unsystematic selection is
shown in

Chapter 7 is an extension from here, as it gives the concluding remarks of the
entire study along with the primary limitations of this study.

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Chapter 2 – Literature Review
2.1 BRIEF HISTORY OFINDIAN FURNITURE INDUSTRY

As of 2011, the Indian furniture market is estimated to be worth US$ 307,922
million. Of this, wooden furniture accounts for US$ 109,358 million. About 13.5 per
cent (US$ 41569 million) of this (wooden furniture) is imported and imports are
growing at 60 to 70 per cent every year. India was the largest furniture importer in
the world in 2010-11, with a 27 percent share in the furniture imports worldwide. A
total of 1,15,476 importers shipped furniture to India during this period, mainly from
Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan.
The furniture sector in India makes a marginal contribution to the Gross Domestic
Product (GDP), representing about 0.8 per cent of the total GDP. The major part of
this industry, approximately 85 per cent is in the unorganized sector. The remaining
15 per cent comprises of large manufacturers, such as
Godrej & Boyce Manufacturing Co. Ltd., BP Ergo, Featherlite, Haworth, Style Spa,
Yantra, Renaissance, Millennium Lifestyles, Durian, Kian, Tangent, Furniture
Concepts, Furniturewala, Zuari, Truzo, N R Jasani& Company, V3 Engineers, PSL
Modular Furniture etc.
The range of indigenous furniture available in India includes both residential and
contract system furniture. Manufacturers in India usually use a three-tier selling
and distribution structure, comprising of the distributor, wholesaler and retailer.
The market is mainly concentrated in tier A, B and C category cities (the top 589
cities).Tier A and B type cities together constitute 43 per cent of the total market.
With a healthy economy and increased household and institutional spending, the
2.2 Furniture industry composition:-
As with the global market, household furniture is the largest
segment in the Indian furniture market, accounting for about 65 percent of
furniture sales. This is followed by, the office furniture segment with a 20 percent
share and the contract segment, accounting for the remaining15 percent.

market is

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Market Share
Household furniture Office furniture Contract Segment

20%

15% 15%

65%

Household furniture:-

Household furniture in India is available in a wide range, to cater to different
customer needs. A typical middle class urban Indian home has five rooms
(including kitchen and bathroom). About 25 percent of the urban populations live
in homes with five rooms or more, while 45 percent live in houses with three
rooms or less. About 16 percent is estimated to live in single-room homes. The rich
and upper middle class is typically very attentive to design and quality, so price is
rarely a determining factor. In general, European style furniture is only found in
homes of the urban upper class. Demand for furniture of international standards is
limited to the larger cities. It is also estimated that the wealthier classes do not
change furniture very frequently. The average life of a piece of furniture is about
20 years and some craftsmen‟s pieces are used for as long as 50-70 years. Colonial
furniture is still very common in India.

Household furniture comprises of

Living Room Furniture
Bedroom Furniture
Kitchen Furniture
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Drawing Room Furniture
Dining Room Furniture
Entryway Furniture

Office Furniture:-

The office furniture segment caters to the commercial and office space. This
segment has witnessed rapid growth in recent years, in line with the growth in the
Indian economy and subsequent demand for office space. The thrust on real estate
and office construction is expected to sustain in the near future, indicating
continued growth for the furniture industry.

Contract segment:-

The contract segment caters primarily to hotels and its growth is consequently
linked to growth in tourism and development of new hotels. There are around
1,400 hotels in India in the organized sector. More than 12 per cent of these are in
the 5-star and above categories.

2.3Market Capitalization

The Indian wooden furniture industry is able to generate approximately a turnover of
Rs 3,500 crore annually. The market of wooden furniture solely owns the share of
nearly Rs 60 crore. And as per one of the survey done recently, the industry is
expected to grow by 20 percent in coming times.

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2.4 Top leading Companies
Godrej & Boyce Manufacturing Co. Ltd.

• It is a part of the Godrej Group and was incorporated in 1932. The Godrej Group
recorded revenues of around US$ 813 million in FY‟11
• It mainly manufactures consumer products, office equipment, consumer
appliances, chemicals, agro products, security equipment, industrial products and
offer office automation and storage solutions
• The company‟s manufacturing facility is located in Mumbai, Maharastra
• The company has exclusive showrooms and dealer outlets across India

Featherlite
• Featherlite is one of India‟s largest furniture manufacturing
companies and was started in 1965
• Featherlite has been retailing furniture for the past 20 years and the first outlet
was opened in Bangalore in 1987
• The company has a state-of-the-art manufacturing plant and is engaged in
continuous R&D
• The company‟s manufacturing plants are located in Bangalore and Hosur. It has a
presence in 22 locations across India
• It has around 25 exclusive showrooms in Mumbai, Chennai,
Bangalore, Delhi, Kolkata and Hyderabad. It manufactures
around 20, 000 chairs and 3, 400 workstations per month.
35 per cent of the total production is sold through retail outlets
• The company has an employee strength of 500, which includes architects, interior
designers and others

Style Spa
• Style Spa Furniture Limited is promoted by the Zuari-Chambal Group.
Established in India in 1997, to manufacture and retail furniture, the company is
headquartered in Chennai
• The US$ 15 million manufacturing facility at Kakkalur, near
Chennai, in the state of Tamil Nadu, is a sophisticated and fully automated plant,
which is one of Asia‟s most modern and largest manufacturing facilities. The ISO-
certified plant produces around 0.2 million furniture pieces annually

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• The company manufactures home and office furniture that is retailed through
about 92 exclusive retail outlets, spread across the country
• The company also provides after sales services through
its showrooms

Millennium Lifestyle
• Millennium Lifestyle is a family owned enterprise incorporated in 1999. The
family had nearly 75 years of experience in retailing Indian art and antiques
• Millennium Lifestyle offers a one-stop solution to cater to the customers‟
complete furniture requirements, as it offers a wide range of furniture from around
the world under one roof
• A number of brands across various product categories are sold from the
company‟s retail stores - ArteM, Divani, Loddenkemper, RioArt, Sauder,
Sherwood and Softplus. Millennium Lifestyle has its showrooms spread across the
two southern Indian cities of Bangalore and Hyderabad
• The company also provides the „designing your own interior sitting at home‟
service with the help of an online interactive room designer

Durian
• Durian is a major player in imported furniture, offering living, bedroom, dining
room and office furniture
• The company has been set up by the Dokania Group, which has been involved in
plywood manufacturing for about 25 years
• Durian has over 40 imported furniture showrooms in the country
• The company also offers free interior design consultancy and free delivery and
furniture installation

Nilkamal
• Nilkamal Group of Companies has a turnover of over US$ 125 million. It is the
leader in plastic moulded furniture
• The company has diversified into the lifestyle furniture business by launching
@home, which is a complete home solution store offering contemporary
readymade wooden furniture. The company has eight manufacturing locations
in India. It also has joint ventures in Bangladesh and Sri Lanka
• It provides services like design solutions, professional guidance and interest free
loans, besides furniture and accessories
• The main strengths of the Group are a 350-member wide direct sales network, a
350-plus strong dealer network, 33 regional offices in all major Indian industrial

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cities and 24 warehouses all over India and a warehousing facility along with a
marketing office in the UAE

.

2.5Carrier opportunities

There are numerous opportunities in India for business of Furniture as the
household has increased its income while the economy is reaching to new horizons
of developments. There are opportunities like start up a business or work as an
interior decorator of furniture, or the supplier of the furniture to the local market
from the national market. Minimum qualification is required for any candidate to
start up the job in this industry.

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Chapter 3 – Companies profile
3.1 Company: -THE FURNITURE REPUBLIC

A brand for furniture that gives every customer a right to good furniture, the right
to make an informed decision, the right to the best I value, quality and service.

TFR is one of the leading manufacturers of superior quality laminates range that
can only be limited by the imagination. With the stringent quality check, high
manufacturing standards and modern infrastructure, it offers top quality decorative
laminates, door skins, metal foil, dry wipe marker board, chalk board, post
forming, compact, digital and screen printed laminates with Borer, Fungus and
Termite (BFT) guard on all its laminates. Realistic natural textures paired with
veneer prints and creative abstract textures, metallic foils and fancy prints enables
you use Durian Laminates to express your individuality in a myriad of ways. From
being the pioneers in plywood and veneer business to being the leading lifestyle
brand in India, our journey has been a memorable one. A journey that has been
event fully marked by numerous pioneering achievements in the Interiors
Infrastructure Industry. Today we touch the lives of so many of Indians everyday
with our range of innovative laminates, sturdy doors and world class home and
Office & Home furniture. And this has been possible because of our passion for
excellence in everything that I do. In fact at Durian, excellence is an attitude. An
attitude that has been taken to heart by our strong and committed customer-centric
team of professionals across pan India. Store is among the select few in India to be
awarded with the internationally acclaimed Forest Stewardship Council (FSC)
certification apart from the prestigious ISO 9001 and 14001certifications. In our
pursuit of excellence I will always be committed to enrich your lifestyles with
newer and innovative products.

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3.1.1 MD’s message
Mr.Aditya Gupta
As you might have read: LIVE SMART, BUY RIGHT-is our simple but strong
message to the customer. It is also our credo. Unless we buy smart and right from
our factories, we won‟t be able to deliver delight to our customers .Our customer
are design conscious, value seeking and have several demands on their time. We
totally support their desire to buy smart things, with good quality and genuine
value. It is time to declare freedom from boring interiors, it‟s your republic.

3.1.3 MISSION
This mission statement reflects our proud past and our desire for the future. This is
the mantrathat drives us in everything that we do. From design through fulfilment,
we continuously striveto provide the best product at the best prices accompanied
by the best service in the industry. Being the best and bringing the best to you is
our relentless pursuit

3.1.4 VISION
"Through positive energy, faith and passion, providing the best possible product
and service inthe market and therefore creating dynamic growth and prosperity.”

3.2 4- P’s of furniture industry

3.2.1 Products

Under this heading a marketer needs to consider the thing that is being sold. This is
not just the physical product itself, but also anything related to how it is made,
packaged and named. Under this heading the marketer also needs to consider
product/service options, the after-sales service, warranties, and servicing. For
example, look at all the options available on a major car manufacturer's website.
You might also consider all the choices you might have to make for a simple flight:

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Household Furniture
Sofa, Lounger, Dining, Bed Room, Home office, Side &Center Table, Storage,
Miscellaneous, Computer Table etc.

Office Furniture
Desks, Conference Table, Chair, Miscellaneous and etc.

Contract segment
In this segment we include all the furniture which is used to build hotels.

3.2.2 Price
This heading refers to decisions about how much to charge for goods and services.
It may be easy for you as a manager to neglect this aspect of the mix in favors of
the more 'glamorous' promotion and product areas, but ultimately decisions over
price affect the viability of a brand and the profitability of an organization. Pricing
is also much more complex than you might think.

3.2.3 Place
This heading refers to distribution. This means all aspects related to how goods and
services are 'moved from the producers to the end user. This means the
coordination of retailers and/or wholesales and in the case of products the logistics
involved in moving from factory/warehouse/head office, to the end user. Most
goods are sold through intermediaries, (for example, retailers). Marketers must
therefore consider the type, size and location of retailers and possibly also the
training of retail staff

3.2.4 Promotions
This heading refers to all types of communication that relate to a specific
marketing campaign. This includes communication with retailers and distributors,
communication with purchasers and end users and also internal communication
with the sales force and other employees. Promotion is an area with considerable
innovation. Marketers put great efforts into finding new ways to communicate with
consumers. When people think, or talk about marketing they are often only
considering promotions. This is because t is the most visible part of the marketing
process after the product itself. But it would be a mistake to focus only on
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promotions. Promotions work best when they are considered alongside decisions
about products, pricing and place.

•Direct Marketing

•Sponsorship

•Public Relations

•Personal Selling

•Advertising

•Sales Promotions

3.3 Key success factor of the company

While the Indian furniture market is growing rapidly and can yield sustained
advantages, an assessment of the sector and the key trends driving it throw up a
few key take-aways for potential investors. These are:

3.4 Build the brand

India being a price and value-conscious market, consumers typically look for cues
that indicate assurance of value. A strong brand is important for furniture
manufacturers in this respect, to increase customer awareness and trust.
Participation in furniture trade shows, organizing seminars, etc., could therefore
prove to be useful means to build a brand.

3.5 Understand the market

Potential investors would also need to concentrate on specific regions customer
segments initially, to establish themselves and test the market before investing in a
national distribution network. Establishing a liaison Office & Home to study the
market extensively and identifying investment opportunities will also prove to be
steps that will enable investors to firm up their India operations

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Chapter – 4: Milestones of company
Aditya Gupta, Chairman

Aditya is co-founder and Chairman of Sharda exports,GlocalEdge and The
furniture republic. He is company's strategic advisor and a visionary entrepreneur
who has created corporations worth $150M.

Aditya and his brother Ashish started Sharda Exports and ihdp Business Park and
the Furniture republic. Under their leadership, Sharda Exports became the fastest
growing floor covering manufacturer and exporter in India. Due to its creative
designs and quality-driven approach, Sharda Exports has become a leading floor
covering exporter in India and has won consecutive national awards since 1997.

It exports products to 350 world-renowned brands, retail stores, and design houses
in 57 countries. They pioneered ihdp, a first of its kind business park in Asia. This
business park brings together home fashion exporters, provides temporary display
opportunities for global buyers, and is a first class corporate park with offices of
several multinational corporations. Aditya's extensive global travels and
relationships bring tremendous value to the company's wealth of network and
knowledge.

Mr.Aditya holds an MBA from Faculty of Management Studies (FMS) and a BE in
Mechanical Engineering from Indian Institute of Technology Roorkee (IITR).
Aditya is an avid photographer, squash player, and adventure sports enthusiast.

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4.1 Sharda exports

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4.2 IHDP (international home deco park)

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4.3 The furniture republic (TFR)

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1. Introduction
Now a days, even if we are at home, on the street or in the cinema, we can notice
how many Companies are speaking to us all the time. Information is coming
from numerous different sources, and can reach us in our bed, and which is so
personal, even in the toilet. Tailored information always reaches its target, and
then everything will depend on the individual‟s decision. The goal is to make
customers loyal once they have decided to purchase one brand‟s product. We can
also observe ourselves as well as others feeling some kind of satisfaction
during shopping, which is because of the „good decision‟ we made about
the purchased products. What does this „good decision‟ mean actually? I think that
nobody can tell us what a good decision exactly is. There are too many different
view point, as everybody is different in the world. That is the same situation when
companies try to persuade people that they are the best possible choice in a
particular market. They use numerous ways of marketing communication, by the
help of BTL and ATL tools, but then they also have to decide which form of
communication to choose, which will be the most suitable for their target
group.
However, it is for sure that in many cases BTL communication can
establish personal relationship between products and customers, so it can be
more efficient.

In my thesis my objective is to find out what the current advertising
tendencies Whether there are more companies using BTL today or there will be
more using in the future.

I have prepared my thesis in a BTL activity. I got lots of help from my mentor,
and also got the chance to get involved in projects, such as the BTL activity
of THE FURNITURE REPUBLIC
. So, I mainly prepared my report based on my collected personal experiences.
In my Report, I analyse the concept of BTL, and examined the effect of
BTL activities on consumers by the help of some case studies experienced
during my internship.
the question: „What will be the future of BTL marketing?‟

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2. BTL – Below TheLine
The expression Below-the-line is coming from practice. The world‟s biggest
cosmetic- and domestic-chemical-products-producing company, Procter and
Gamble classified its costs in two different groups: for its traditional mass
media and for the non-traditional elements. In traditional mass media, agencies
are receiving commission. Procter andGamble wanted to know how much this
commission was, so they wrote those costs for non-traditional mediums
in a different column of the company‟s bookkeeping – so the agencies‟
commission started to be counted separately.
Therefore, every advertising and commercial tool, which does not contain
agency commission, is in the category of BTL. It has to be clarified what
goes under the agency commission concept since it would not be concrete.
The aim of BTL communication is to develop private relationship with the
customer, and to inspire them to speak to us. We can introduce novelties in a very
pleasant way, so we are able to present specific information to our clients.
2.1. Concept of below-the-line
There are many definitions of below-the-line. Basically, these definitions can be
divided into two groups. According to the first one, every kind of non-classical
advertising tool, that is not press release, TV, cinema, radio-spot or public
advertisement, can be mentioned among below-the-line tools. The second one
puts the emphasis on agency commission, and declares that every kind of
marketing activity that does not contain commission is part of marketing
below the line. It is important to note that each explanation highlights those
marketing tools that are not part of the below-the-line group. However, the
characteristics of these definitions can easily picture the variety and great number
of possibilities of below the line marketing We can examine marketing tools in a
way that whose property the applied mediums are. In this case, we can
differentiate three groups. Above-the-line media: the applied media during
the communication is private property. Meaning TV commercial, radio spots,
press release, billboards, and other public place tools. Provisional media: the
advertising tool is public
property, meaning direct marketing (DM). Below-the-line media: medium is the
property of
the advertiser, meaning point-of-sales/point-of-purchase (POS/POP) tools,
coupons, etc.

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2.3. Advantages of using BTL
There are some cases, where the below-the-line tools are more effective than the
traditional advertisements. Reasons for this can be: Easier selection, more accurate
reaching of the target group More controllable hence cost effective Creates
opportunity to meet directly with the product/service ( sampling, event
marketing)Interactive, meaning that it makes customers act. Determining the exact
target group makes communication more personal Effectiveness can be measured
easier by BTL Gives unique opportunities in making differences from competitors
Brand-supporting In case of certain products (ex: tobacco), the target market
cannot be reached – or just partly – through traditional media because of the law
forbidding it. Then the importance of tools below the line increases.

2.4. The position of BTL in marketing communication
Nowadays more advertisers are choosing mass media tools for their products
or services. They do not use below the line activities. However, it is not always
beneficial to use intense television, radio, newspapers or billboards advertising
in case of purpose of selling or introducing products. Applying other
marketing tools is only possible if the ATL campaign has not used up all the
available financial resources for advertising. At the same time, many companies
consider ATL tools a better option, because they cannot reach the necessary
advertising frequency required for the desired effect. Lots of people think
that another „advantage‟ of ATL communication is that more customers can be
reached during a campaign therefore the cost of 1 contact is absolutely less than
that of a BTL campaign. This can be true in general, but an important difference
is that ATL communication has bigger number of standard deviation while in
the case of BTL media the target is substantially more accurately reached. Also at
below-the-line the customer encounters the tools where the purchasing decision
is actually made. People can easily look through those advertisings on TV,
radio,
press or in public area billboards, so tools appearing in shops with
reminding effects can highly contribute make a positive purchasing decision.
At the same time, it is worth to mention that patronizing a below-the-line
campaign with traditional ones can make it even more effective. Nowadays in
Hungary, companies spend only 3 per cent of their marketing budget on below-

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the-line activities; this ratio in the US is more than 50 per cent. The reason of this
considerable difference is that the significance of below-the-line marketing is
not recognized yet, and the experienced experts are missing as well.
2.5. Parts of BTL
Classifying the areas and tools of below-the-line reflects its complexity and
variability:
a.) Public Relation
b.) Direct marketing
c.) Sales Promotion
d.) Advertising in-store (POS, POP)
e.) Fairs and exhibitions
f.) Event marketing
g.) Sponsoring
h.) Personal selling
2.5.1 - Public Relation
PR is a planned and continuous set of activities, of which the target are the
customers of the company, its public opinion, the understanding between its
tighter and broader environment and building of trust. We can also talk about
company image and internal PR meaning the company‟s internal
communication. In both cases, there is considerably much more than
marketing communication. In case of many companies PR concentrates on press-
relations, is an important but not the only element. Good press relationship can
improve the situation of the company; can help change its image. According to the
direction of Public Relation we can
talk about internal and external PR. The previous one means the information
flows between leaders – employees, organizations, while the latter one is
about the communicational relationship built with the outside business
environment.

Characteristics of PR:
• Organizational, mostly corporate point of view, success is based on good
relationship with employees and the public
• The tool of forming public opinion, indirect influence, nurtures trust.

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• Endeavours mutual understanding, from acoordin -ating point of view,it
considers environmental problems.
• An overall group of activities,
• Employees of the company are the executives of PR activities.
• Informing of the public and feedback are done during the communicational
process.
• It has an effect on various fields through the employees, like on lives, way of
thinking, relations, market performance of the economy, demand and supply
and sometimes even on price policies.
• Is enriching human resources: builds personal, human relations.

2.5.2-Direct marketing According to the broadest expression
Direct marketing means all the possible tools of marketing and
communication in setting up direct consumer relationship. According to
thetighter expression, direct marketing constitutes of tools of marketing
communication. According to the American Direct Marketing Association,
direct marketing is a kind of interactive method in the field of marketing that
can be used anywhere and which – by using one or more advertising media – can
have an effect which can be measured by replies and

Number of purchases made.
Characteristics of DM:
• Puts human being in the centre,
• Can be measured by concrete enquiries and purchases,
• Fosters dialogue,
• Communication with the buyer can be more accurate and personalized,
• Addressed character, message is customized to the customer's needs and wants:
segmentedspecific content, tailored to size according to the consumer's profile,
• Feedback can be registered, direct measuring,
• Necessity of computerized database.

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Advantage of direct marketing enables:
• Handling a number of consumer groups and the segmentation of the market,
• Identification of target markets, unlike segmentation and grouping of “niche-
product” of bidders on the mass market.
• Improving relations with partners and with the supplier background,
• Regular and up-to-date information about needs, requirements and about
changes of demand,
• Elimination/dampening of the so called noises, the lose of information by
eliminating mediation
• Reducing „standard deviation‟ of the applied communicational tools,
• Building brand loyalty,
• Reducing costs,
• Accelerates cash-flow,
• Comparison of expenditures and outputs, the concrete measurement of
effectiveness.

2.5.3 - Sales Promotion = SP
Sales Promotion refers to all the tools of which objective is the immediate increase
of sales by providing price-incentives through a given period of time to customers /
retailers. According to the definition of the American Marketing Association:
„Sales Promotion refers to all the marketing activities that stimulates customer
purchase and the effectiveness of merchandising activity, but does not relate to
the concept of personal selling, advertising nor to Public.Relation, like for
example: visits, exhibitions and fairs, demonstrations and the various, not
traditional activities and not standardized sales efforts.‟

The system of Sales Promotion:
PUSH – instructions and its effects: producers stimulate wholesalers and retailers
to order.
PULL – instructions and its effects: demand of consumers is created by the
stimulation of producers, merchandisers and different advertisements.
Objectives of customer sales promotion:
•Raises interest about products and services,
• Forming direct relation between the customer and the product,
• Emphasizes product characteristics,

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• Exercise auxiliary inspiration.
Objectives of merchandise sales promotion:
• Primary aspect is to take business into focus,
• According to this to lure the customer into the shop,
• Passing storing costs on to the customer,
• Increase turnover,
• Increase turnover speed,
• Clean-out the shelves.
Methods of stimulating customers:
• Presenting the product by assembling, sampling and try-out,
• Price reduction,
• Continuous sales discounts (POS)
• Services during selling secure appropriate usage. Its tools are manuals, try-out,
delivery service, installation and tutorial
• Gifts, free bags, prizes.
Gifts and prizes are subject to the purchase of a particular product or to a particular
sum of money spent. The easiest form of these is when customers get some
complimentary items besides the purchased product. A little more difficult
but also more stimulating is when customers have to send the receipt of the
purchase to the rewarding company so then they will
get the gift by post.
• Purchasing voucher, coupon
Purchasing vouchers are mainly given by manufacturing companies to the
customers. These
can be used instead of cash when buying. As a rule it is used when a new product
is launched.
• Consumer competitions, prize-winning games, draw.
• Refund, redeeming discount, guarantee conditions.
• Sample try-out, sampling.

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2. 5.4 – Point Of Sales advertisement (POS, POP)
There are many factors justifying the increasing importance of point of sales
advertisements.
Most of them are confirmed by scientific researches as well:
• Mass communicational campaigns flood customers with immense amounts of
information that cannot be stored in their memory in the long run. Therefore
reminding advertisements in the sales location can mean a significant competitive
edge.
• During the mass communicational advertisements the product is presented by the
help of a photo or illustration, so the customer can neither see nor experience the
characteristics of the product that could influence him/her in the purchasing
decision (package, surface,flavour). She/he would only have this possibility in the
shop.
• By the spreading of self-service businesses with decreased staff numbers,
purchasing is
becoming more impersonal. Then the buyer will make his/her decision of which
product
to buy and how many of it with lack of information.
• The aim of shops and of network of shops is to let people living close
to them become
loyal customers in a greater number. Hence, it is indispensable to let
potential buyers
know their assortment and range of services.
• Besides the appearance of new products, the variety of substitute and
supplementary
goods is increasing. Their advantages can be presented mainly in the shop itself,
since the
customer can get into direct touch with the product there.
• It was recognized and acknowledged that an environment in which purchasing is
joy and
pleasure for the customer has to be established at the sales locations. This could be
done
by inner and outer tools of the merchandiser and by the tools of
advertisement of the
producer. It is necessary to provide opportunities for continous sales promotions
and other
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sales-stimulating activities (sampling, price discount). However, in order to
work out all
these efficiently, there is an absolute need for a continuous, mutually trust-
based
cooperation of the producer and of the merchandise.
Psychological characteristics of sales location advertisements:
Psychology differentiates active and passive memory. We mean the following
under active
memory: if a human being sees an advertisement could he recall actual events by
himself or
by answering a question? Usually this memory is inaccurate and cloudy. Passive
memory gets

into work automatically according to the stored information of a seen
advertisement. Noticing
a familiar face in the crowd will calm and make the man happy in case the relation
between
the two is good. Therefore, when the mass – communication advertisement
has already
established a positive (at least not negative) attitude to the product, a new meeting
with it at
the spot of sales can generate an even stronger effect of the customer. That
is why
advertisements at the spot of sales play an important role in activating passive
memory.
There are some examples for tools building on Psychological effects:
- Configuring and placing display (it is important that the display matches the
message of mass-communication)
- Placing daily consuming goods at not too busy spots, goods generating impulse
have
to be in the front of the store or near the cashier.
- Showing the product on more types of visual and

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Audiovisual aids.
- Daily products should be placed on the lower shelves of the stand while
products generating impulse have to be on eye-level-shelves.

Organizing guidelines

The carrier of sales spot advertisement is practically the whole store and those
inner and outer tools, methods that result the increase of turnover of the
store. The design of the on-spot-sales-advertisement is affected by the shop's
location, type, system of sales.

Configuring sales spot

When configuring the inner space of the store there are important aspects
that have to be considered: the customer should purchase in a civilised
environment, let her feel comfortable, and let her go home with the feeling and
experience that make the return of that customer sure.
When configuring the inside of the store, it is basic to provide enough space for
comfortable purchasing and for using the services. Also, have to pay attention to
provide sufficient space for executing sampling, placing displays and prize
winning games. Wide and clear passageways let customers look around
properly in the store. Nurseries, shops in the store (shop in the shop) make
purchasing even easier and more comfortable.

Placing the products
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Purchasing has two types: planned in advance and impulse purchasing.
Taking these into consideration goods should be placed in a way that daily
products are in the inner side of the store, preferably at a constant place, while
those products generating impulse purchasing are near to cashiers.
Since some points of the store are not equal customer-traffic-wise when
configuring the dual-base sales activities the traffic of certain spots must be taken
into consideration.
The first spot is the constant, regular place of the product. The second sales
spot is the surrounding of the cashiers, entrance, exit and the displays,
baskets, pallets placed at the end of the stands. Generally, easy-to-sell products
with eye-catching price labelling occupy these places. Also important to
consider the frequency of purchasing and the weight of the product (products with
more weight should be placed near to the exit). More surveys confirmed that
placing products in a symmetrical way or in different geometrical shapes restrain
purchasing activity, because customers do not like to break down those for
ms.Considering these, placing products in soldier-like order is not practical.
Roles of temperature, colours and light. Temperature experienced in the store
can also be decisive: nobody likes purchasing in a cold shop. The ideal
temperature is about 20°C. According to some observations, fairs organized in
wintertime can have a bigger number of visitors than those in august; probably
temperature also played an important role in it. The colour of the store‟s inside is
not defined. By all means, it is a fact that products wrapped in white or in pastel
colours are the most adequate. We must not forget that positive associations
by the help of colours relate to the packaging mainly. The lighting of the inside is
basically made by accidental lighting. However it is important that these
lights should be adequate to natural light, be pleasant, eye-friendly and not to be
disturbing. The well-designed lighting highlights order,tidiness and also assist to
shape a positive image of the store.
Advertisement with sound Experiences obtained in the industry (surveys of
Taylor) confirm that music can decrease the feeling of tiredness for a while and
increase productivity. Applying it in commerce, not only the sales staff but
customers can also enjoy the refreshing effect of music. The well-chosen music
that fits into the place of sales creates a pleasant atmosphere. The read-out
program placed in the musical environment gives information about discounts,
services and products.
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The sales spot advertisement needs to put emphasis on the following factors
in order to succeed:
o Proportion of text and music
o Creativeness of the text
o Quality of technological equipment that transmit the program
o Safe operation of equipment.
i.e. Fairs, exhibitions
Fair is a periodical event held from time to time at the same location, which
objectives are to establish and to improve relations between producer, retailer and
the costumer, to foster sales and the dissemination of information.
Exhibitions showcase the achievements of a particular field.
Types of Fairs:
1. The range and types of displayable products at an ordinary fair do not
fall under any restrictions.
2. Professional fair – most commonly multi-profession-fairs. We
can differentiate producing-goods and consumer goods fairs.
3. Vertical professional fair only introduces one or two groups of
products. Its visitors are professionals and concerned traders. Primarily
serves marketing objectives, sales stay in the background.
4. The characteristic of the horizontal or representational professional
fair is the high-level specialization. Users and end-consumers can
also visit, depending on their interests. It is suitable for executing
professional objectives as well as satisfying the needs of consumers for
information.

Event marketing, fairs
An event is an organized meeting for a community (sometimes has an entertaining
function).
The process of organizing events can be divided into 4 parts:
- Planning
- Preparing
- Execution
- Follow-ups, evaluation
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The difference between fairs and event marketing is: while the primary objective
of a fair is informing, the main aspect at event marketing is let the visitors
enjoy themselves. The objective of event marketing is to give the brand/company
a pleasant, entertaining experience. In its centre, we can see the vivid transmission
of the message and direct informing, exchange of information. Its aim is to
create a positive image in the customer's mind; several times direct sale is not
the primary aspect. There is a possibility for consumers as well as for partners at
these events to see and try the products. It is a key element at event marketing
that certain events give special and unique experience since catching the interest
of the target group can only be made sure this way. The turnover increasing effect
of event marketing The effect of outdoor programs cannot be measured
accurately; only the number of visitors can be quoted. Besides this, the value of
one or two events can be weighted through press releases. The importance of
events is given by those people who take part in those and who are important from
the companies' or from trade locations' point of view. So if we can achieve
something memorable during the event it can be a bigger success than
trying to reach potential customers by the conventional media. Earlier brands or
products were more in the centre of the popularity increasing programmes
while nowadays banks, broadcasting and technical companies, so service
providers are using event marketing as well.

Sponsoring
Sponsoring is a kind of contribution by money or by any form, by which the
investor gains trade potential in connection with the activity.
Characteristics of sponsoring:
• It is a bilateral business, where both parties – from the beginning – has
to be aware of what they expect from the co-operation, what compromises they
are to make in order to mutually gain advantages.
• Sponsors are classified by the degree of financial contribution.
• Reaches customers in non-commercial surroundings.
• Makes skirting of advert restriction possible.
• Neither falls into the field of advertisement, nor into of Public Relation. It is a
complex tool of marketing communication that highly beneficial on the long run.
• Sponsoring is usually financial, and its effectiveness can be measured by the
change in market share and in image judgement.

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• It is important when choosing sponsorship that the target market should be the
same for the sponsor as well as for the sponsored person, that it shapes the
company‟s reputation and image and that the sponsor would have favourable
communicational tools by the sponsored person.
• The success and reputation of the sponsored person are to be adapted to the
company‟s
communication.
2.5. 7 – Personal selling
Personal communication means substantially more than the sheer sale of the
product. There is
an opportunity for maintaining and improving customer relations and
managing customer
complaints, which help keeping customers and also motivate them for further
purchase.
Personal selling is a kind of marketing tool where there is direct and
interactive
communication between the seller and the buyer. Its characteristic is direct
connection, the
possibility of immediate response. At the same time, it is important to mention that
the contact
cost/customer is high and it is possible to reach only a narrow target group.

Fields of personal selling:
• customer based
• business based (business to business)
In the market of consumers, personal selling comes in existence when the
buyer needs tomake a difficult decision, purchasing is of high-value, if the
object of the purchase is anexclusive product and if the product is of service-
nature.
The presence of trade representatives is crucial in the relationship of retailer and
wholesalerand of producer and commerce. The advantage of keeping good
relationship with therepresentative is that the information does not get
distorted and is personalized. Since thevolume of purchasing is quite big on the
market of producing/investing assets and generallythe decision-making process

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is quite difficult, it is important for the representative to haveenough information
about both the market and the customer.

Below the line (BTL) / Above the line(ATL) / Through the line (TTL)
Advertising

In organisational business and marketing communications, Below the line (BTL)
is an advertising technique. It uses less conventional methods than the usual
specific channels of advertising to promote products, services, etc. than Above the
line (ATL) strategies. These may include activities such as direct mail, public
relations and sales promotions for which a fee is agreed upon and charged up
front.

Above the line(ATL)is a type of advertising through media such as TV,
cinema,radio, print, banners and search engines. Below the line advertising
typically focuses on direct means of communication, most commonly direct mail
and e-mail, often using highly targeted lists of names to maximize response rates.

In addition, Above the line is much more effective, when the target group is very
large and difficult to define. But, if the target group is limited and specific, it is
always advisable to use Below the line promotions for efficiency and cost-
effectiveness.

Say, for example, if a manufacturer of pen is going to promote its product, it may
take the ATL route, but if a company manufactures computer UPS, it will
certainly take the BTL route, as the target group is very limited and specific.

More recently, agencies and clients have switched to an 'Integrated
Communication Approach.' BTL is a common technique used for "touch and feel"
products (consumer items where the customer will rely on immediate information
rather than previously researched items). BTL techniques ensures recall of the
brand while at the same time highlighting the features of the product.

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Through the line (TTL)refers to an advertising strategy involving both above
and below the line communications in which one form of advertising points the
target to another form of advertising thereby crossing the 'line'. An example would
be a TV commercial that says 'come into the store to sample XYZ product'. In this
example, the TV commercial is a form of 'above the line' advertising and once in
the store, the target customer is presented with 'below the line' promotional
material such as store banners, competition entry forms etc.
Promotion can be loosely classified as "above the line" and "below the line"
promotion. The promotional activities carried out through mass media like
television, radio, newspaper etc. is above the line promotion.

The terms 'below-the-line' promotion or communications, refers to forms of non-
media communication, even non-media advertising. Below-the-line promotions
are becoming increasingly important within the communications mix of many
companies, not only those involved in fmcg products, but also for industrial
goods.

Some of the ways by which companies do BTL (below the line) promotions are by
exhibitions, sponsorship activities, public relations and sales promotions like
giving freebies with goods, trade discounts given to dealers and customers,
reduced price offers on products, giving coupons which can be redeemed later etc.
Below the line sales promotion
Below the line sales promotions are short-term incentives, largely aimed at
consumers. With the increasing pressure on the marketing team to achieve
communication objectives more efficiently in a limited budget, there has been a
need to find out more effective and cost efficient ways to communicate with the
target markets. This has led to a shift from the regular media based advertising.
A definition of below-the-line sales promotion given by RohanSalvi:
'An immediate or delayed incentive to purchase, expressed in cash or in kind, and
having only a short term or temporary duration'.

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Methods of below the line sales promotion

1. Price promotions
Price promotions are also commonly known as" price discounting". These can be
done in two ways:
A discount to the normal selling price of a product, or
More of the product at the normal price.
Alt Price promotions however can also have a negative effect by spoiling the
brand reputation or just a temporary sales boost (during the discounts) followed by
a lull when the discount would be called off.

2.Coupons

3.Gift with purchase

4.Competitions and prizes
This is an important tool to increase brand awareness amongst the target consumer. It can
be used to boost up sales for temporary period and ensure usage amongst first time
users.

5. Money refunds

Here, a customer receives a money refund after submitting a proof of purchase to
the manufacturer. Customers often view these schemes with some suspicion –
particularly if the method of obtaining a refund looks unusual or onerous.

6. Frequent user/loyalty incentives

7. Point-of-sale displays
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Shopping habits are changing for the people living in metropolitan cities. People
prefer big retail outlets like Big Bazaar to local kirana stores. Most of the
decisions of buying are taken by the virtue of point-of-sale displays in these retail
outlets.

Examples of BTL promotion
Most of the big brands are following the suit of BTL promotion because of rising
prices of media based promotion, advertising clutter and increased impulse
purchasing.
Some of the interesting examples are:

Most of the educational institutes like career launcher, Time and PT are holding
informative workshops and free tests for students which give a direct interaction
of these institutes with the target customer and hence a suitable platform to sell
themselves.
Ring tones and music videos on cell phones are helping the entertainment industry
to promote for a music video or a movie for dirt-cheap rate as compared to media
promotion.

Various companies sponsor sport events to promote their brand, but nowadays
media companies like Hindustan Times are holding weekly events throughout the
country in which companies can put up their stalls, display banners and posters
and arrange for some fun activities. These events give the companies a platform at
very low price to promote their brand and increase visibility among target
consumer. These companies also give discount coupons to winners in the games,
which in turn boost the sales of the products and ensure that first time users try
these products as well.
Pepsi organized an inter school cricket event for 425 schools across 14 cities
which did wonders for the company by promoting the brand amongst the right
target customer for almost no cost.

Most of the pharmacy companies do BTL promotion by getting shelf space
through doctors to display their products or by giving away free calcium tablets
again through doctors, knowing that for a patient a personal advise from a doctor
would hold more value as compared to a commercial advertisement.
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Another interesting BTL promotion was by NIKE. An athlete dressed up in Nike
sportswear could be seen jogging on an elevated treadmill for the whole day on
National Highway 8, Delhi.

Tata Shaktee is a strong rural brand from Tata Steel, for roofing products, has
BTL activity in the form of Haat participation. By having a stall at Haat, Tata
Shaktee engages potential consumers in interactive games around differentiating
attributes of the product. Also, discount coupons are given for interested buyers,
with details of nearby retailers.
BTL promotions are gaining popularity among all big companies nowadays
considering their effectiveness because of the "individual customer promotion" at
a price, which is much lesser than the normal media promotions.

ATL - Above the line activities are those that the agency receive a income from the
( i.e. Commission) media company . E.g. : Advertisements on Newspaper,
magazines , TV & Radio BTL - Below the line activities are the other type of
activities in the promotional mix Like : Sales promotions , Personal selling .Direct
marketing & PR activities.

Sales promotion
Sales promotion is the process of persuading a potential customer to buy the
product. Sales promotion is designed to be used as a short-term tactic to boost
sales – it is not really designed to build long-term customer loyalty.

Some sales promotions are aimed at consumers. Others are targeted at
intermediaries (such as agents and wholesalers) or at the firm‟s sales force.

When undertaking a sales promotion, there are several factors that a business must
take into account:

• What does the promotion cost?
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Will the resulting sales boost justify the investment?

• Is the sales promotion consistent with the brand image?

A promotion that heavily discounts a product with a premium price might do some
long-term damage to a brand

•Will the sales promotion attract customers who will continue to buy
the product?
once the promotion ends, or will it simply attract those customers who are always
on the look-out for a bargain?

There are many methods of sales promotion, including:
• Money off coupons –customers receive coupons, or cut coupons out of
newspapers or a products packaging that enables them to buy the product next time
at a reduced price

• Competitions– buying the product will allow the customer to take part in a
chance to win a prize

•Discount vouchers– a voucher (like a money off coupon)

•Free gifts– a free product when buy another product

•Point of sale materials– e.g. Posters, display stands – ways of presenting the
product in its best way or show the customer that the product is there.

• Loyalty cards– e.g. Nectar and Air Miles; where customers earn points for
buying certain goods or shopping at certain retailers – that can later be exchanged
for money, goods or other offers

Loyalty cards have recently become an important form of sales promotion. They
encourage the customer to return to the retailer by giving them discounts based on
the spending from a previous visit. Loyalty cards can offset the discounts they
offer by making more sales and persuading the customer to come back. They also
provide information about the shopping habits of customers – where do they shop,

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when and what do they buy? This is very valuable marketing research and can be
used in the planning process for new and existing products.

The main advantages and disadvantages of sales promotion are:

Advantages
Effective at achieving a quick boost to sales Encourages customers to trial a
product or switchbrands

Disadvantages
Sales effect may only be short-term Customers may come to expect or anticipate
further promotions May damage brand image

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Chapter 5 – Research Methodology
Research objective
To investigate the effectiveness of sales promotion technique on purchase decision.

The research exercise has been accomplished with the sample size of 100
respondents. The questionnaire method was applied for this exercise. The Research
design was a blend of descriptive and exploratory research design. The research
has investigated the effect of sales promotion. The study involved a field survey
conducted across different malls, offices in the Noida region and in retail store
also.

SOURCE OF DATA
There are two main source of data collection i.e. through primary data collection
are secondary data collection method. I have adopted primary data collection
method for the survey. Under this method the method of survey was best suited
with my sample size and requirement of data.

The respondents from different malls and survey included :

Personal interviews:The investigator follows a rigid procedure and seeks answer
to a set of pre-conceived questions through personal interview. This method of
collecting data is usually carried out in structured ways were output depend upon
the ability of interviewer to a large extent.

Mailing of questionnaires:The researcher and respondent do not come in
contact with each other if this method of survey adopted. Questionnaires are
mailed to the respondent with a request to return after completing the same.

Through these survey was done and the required data was collected from the
respondents. Respondents were not easy to tackle as many of them sounded
uninterested in even listening to me .I collected the required information from the
respondents depending upon their reaction only.

As a type of survey, questionnaires also many of the same problems relating to
question construction and wording that exist in other type of opinion polls:

QUESTIONNAIRE
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o What is your perception about promotional schemes of TFR?

o Are you interested in promotional schemes of TFR?

o Which is beneficial for you?

o Whether promotional schemes will be recommended by you?

o What is reason for not recommending?

o Will you go to other brand with promotional schemes or your regular
brand without scheme?

o Do you wait for promotional schemes for purchasing products and services
for your household?

o Do you wait for promotional schemes for purchasing luxury and non-
necessity products and services?

o Products offered in promotional schemes often have low quality?

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Strongly Disagree May be Agree Strongly
Disagree Agree

o Sales promotion increase your volume of product and services purchased?

Strongly Disagree May be Agree Strongly
Disagree Agree

o Reasons for purchasing the products?

Promotions
Product Satisfaction
Good Packaging
Non availability of other brands
Recommendation to purchase
No particular reason
Just picked it off the shelf
Liked what I read about the product on the
packaging

Liked the advertisement of the product

o Considering your consumption of the product and the purchase of the
product due to promotional scheme, which sentence best describes your
purchase decision?
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I have purchased much more than what I need
I have purchased somewhat more than what I need
I have purchased some quantity of what I need
I have purchased somewhat less than what I need
I have purchased much less than what I need

o Given below is some common types of promotions that are used by
marketers to sell their products. Considering everything, can you please
rank these in the order of your preference? Give a rank of 1 to the most
preferred, 2 to next most preferred and so on?

Different Promotional Schemes Rank
Direct Price discount
Buy 1 get 1 free
Buy 1 get discount on another
Redeemable discount coupons
Contests and sweepstakes
Exchange offers
Product warranties
Bonus pack
samples

o Considering the product that you have purchased, can you tell how do you
come to know about the promotional scheme?

From newspaper ad
From television ad
From radio/FM channels
Came to know when visited the store
From friends/neighbors
From the displays
Others (please specify)

o Can you tell the reasons for purchasing the same brand again?

Promotions

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Product Satisfaction
Good Packaging
Non availability of other brands
Recommendation to purchase
No particular reason
Just picked it off the shelf
Liked what I read about the product on the
packaging

Liked the advertisement of the product

DATA ANALYSIS

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o What is your perception about promotional schemes of TFR?

perception
15%

genuine

53% not genuine
32% doubtful

Interpretation: - The sample size is 100. Data collected by these people indicate
the perception about sales promotion in the real consumer mind and finally it‟s
reflecting in its purchasing behavior. According to data, 53% confirm the geniuses
of sales promotion scheme. 32% goes other way and rest 15% are not sure about
sales promotion scheme. The total percentage which is around 47% of consumer
are either not confirm or sure that this sales promotion scheme actually fooling and
misleading the consumer.

o Are you interested in promotional schemes of TFR?

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Interest

40
49 yes
no
depend on scheme

11

Interpretation: - Promotional scheme are made for creating interest in consumer
mind to attract attention of consumer and generate new consumer. This data show
that 49% are attracted and 40% are dependent on the nature of scheme. This
indicates that if you give fair deal to consumer they are ready to increase their
purchase. Only 11% are against to the scheme, which is very less in number and
does not effect to analysis.

o Which is beneficial for you?

beneficial

37

cash discount
free gift
63

Interpretation: - According to most of the consumer cash discount is more
beneficial than free gift. 63% goes with cash discount and rest with gift. Cash
discount gives direct saving option to consumer, but whether gift is useful to
particular consumer or not it‟s a big question?

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o Whether promotional schemes will be recommended?

recommendation

24

yes
no

76

Interpretation: - The main purpose of promotional scheme is to generate
awareness and interest in consumer. And recommendation is the best tool for this,
and this is proved by this survey in which 76% are agree to recommend the
promotional scheme.

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o What is reason for not recommending TFR?

reasons for not recommending
13

34
product quality
sfter sales service
genuineness
36 durability

17

Interpretation: - Promotional scheme can go either way. So better, we find main
reason for not getting that amount of recommendation. According to data,
credibility of scheme and product quality is the highest factor which force for
recommendation. After sale service and durability of product are one of the factors
which force the recommendation.

o Will you go to other brand with promotional schemes or your regular
brand without scheme?

switching
21
36

regular brand
depend on scheme
other brand

43

Interpretation: - This data indicate that switching to other brand is highly
depending on the nature of scheme. 43% and 21% are ready to change their brand
preference. Only 36% are brand loyal.
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o Do you wait for promotional schemes for purchasing products and services
for your household?

wait for promotional scheme

18

34

yes
no
depend on scheme

48

Interpretation: - For households items as expected, almost half of population i.e.
48% is not wait for promotional scheme. 34% decision is depend on the scheme
and only 18% can wait.

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o Do you wait for promotional schemes for purchasing luxury and non-
necessity products and services?

wait for promotional schemes for luxury iten

26

yes
no
9 depend on scheme
65

Interpretation: - Some data show exact opposite result, 65% are going to wait for
purchasing luxury item. Only 9% can‟t wait rest 26% will depend on scheme.

o Reasons for purchasing the products-

reason for purchasing
39
40 34
35 29
30
25
20 13 11
15 5
10 0 0 0
5
0 reason for purchasing

Interpretation: - the data show the actual reason for buying the products.
Promotion and product satisfaction are the main reasons for buying behavior.
Advertisement also plays a part in deciding consumer buying behavior.

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o Considering your consumption of the product and the purchase of the
product due to promotional scheme, which sentence best describes your
purchase decision-

purchase decision

0 3
17
more than needed
somewhat more than needae
same smount
27 53
less than needed
much less than needed

Interpretation: - according to this data, more than half agree with increase in the
consumption. 27% say that their consumption is as same as before scheme. 17%
their demand decreases with promotional schemes.

o Given below are some common types of promotions that are used by
marketers to sell their products. Considering everything, can you please
rank these in the order of your preference? Give a rank of 1 to the most
preferred, 2 to next most preferred and so on.

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rank
25
25 20
18
20 15
15 10
10 7
5
5 0 0
0
rank

Interpretation: - according to the data, consumer prefer direct price discount then
getting two product for the price of one and warrantee is third largest acc. to the
sample.

o Considering the product that you have purchased, can you tell how do you
come to know about the promotional scheme?

promotional medium
34
35
30
25 16 17
20 13 13
15 8
10 0
5
0
promotional medium

Interpretation: - a television ad is the most effective medium for sales promotion.
Other mediums accepted by consumer are newspaper, radio advertisement.

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o Can you tell the reasons for purchasing the same brand again?

reasons for repurchasing
80 72
70
60
50
40
30 17
20 7 4
10 0 0 0 0 0
0
reasons for repurchasing

Interpretation: - according to the data for repurchasing of any brand product is
the most demanding aspect in any purchasing decision by consumers. Other
aspects are promotion and advertisement.

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Chapter 5: FINDINGS AND CONCLUSIONS

5.1 FINDINGS AND CONCLUSIONS

o Most of the consumers give green signal to the sales promotional activities.
Majority of consumer believe the genuineness of sales promotional scheme.
o Consumer is interested in promotional scheme and if companies provide quality
scheme which is suited for consumer, they will go for their product. Means type
of promotional scheme is important for generating interest.
o Consumer prefers cash discount more rather than gift.
o Most of the consumers are ready for recommending the scheme. Product quality
and genuineness of scheme is the main reason for recommending any
promotional scheme.
o Promotional scheme if presented in beneficial form can change the brand
preference of the consumer
o For household items, consumers are not going to wait for promotional scheme
but for luxury item they are ready to wait. Therefore companies have to focus
more on luxury item promotional scheme
o Promotional schemes are given on the cost of quality. Quality of the product
must be maintained for gaining more customer confidence. And if it is
maintained then the volume of the purchase will increase at very fast rate.
o Consumer purchasing decision is most influenced by promotional activities,
product quality and advertisement for first time purchasing. For repurchasing of
products, promotional activities go to the back seat. Only product quality and
genuineness can result in repurchasing. So companies have to focus in the
quality as well as genuineness
o promotional schemes increase the volume of purchase

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o Direct price discount, warranty and buy 1 get 1 offers are the most accepted
sales promotion by consumers. In addition, contest and discount coupons are
the least trusted sales promotion scheme
o Television advertisement is the most effective medium of sales promotion along
with radio and newspaper advertisement. Advertisement material displayed
outside store is the last influential medium of sales promotion

Chapter 6: Limitations

Limitations
In every project work there is some kind of limitations which affect the accuracy
of work. Same in this project work has been carried out under the following
limitations:

TIME CONSTARINTS: time has been a major limitation while undergoing the
study.

AREA BOUND: since the study was conducted only in NCR so accurate result
was not obtained.

COST CONSTRAINTS: costs involved for the study was also a major limitation
for the project.

BIASED APPROACH: the result obtained might be based on the biased approach
of the respondents.

UNAWARENESS AMONG THE INVESTORS: unawareness among the
respondents about the contemporary investment options and their relative benefits
of different brands acted as a major limitation for the project.

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Biblography
Kotler Philip, Marketing Management, 11th edition. Pearson Education

Marketing ResearchDilipSarvate

ICMR Publications

Kothari C.R. Research Methodology, Edition 2005 New Age International (p) ltd.
New Delhi.

www.google.com

www.marketresearce.com

http://www.economywatch.com/business-and-economy/furniture-industry.html

http://www.furniture-republic.com

http://www.ihdp-india.com

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