A Presentation on

Sales Promotion

By,
Abhishek Singh
PGDM Vth
Disha School Of Management
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Contents
 What is Sales Promotion?
 Objectives, Benefits and types of Sales Promotion

 Difference between SP and Advertisement, Personal selling.

 Retail Sector: Introduction

 Big Bazaar: Introduction
 History, Key Persons, Growth
 Sales Promotion in Retail
 Sales promotion in Big Bazaar
 Conclusion
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 Sales Promotion
In tro d u ctio n
Sales promotion consists of a diverse collection
of incentive tools, mostly short term,
designed to stimulate quicker or greater
purchase of particular products or services by
consumers of the trade.

Sales Promotion is an important method of
promotion which supplements personal
selling and advertising effects.

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Cont…
D e fin itio n


According to AMA:-


"Sales promotion includes marketing

activities, other than personal selling,
advertising such as displays, shows and
expositions, demonstrations and various
non-recurring selling efforts not in the
ordinary routine.“

Whereas advertising gives a reason to buy,
SP gives an incentive to buy.
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 Objectives of Sales
Promotion
1.Introduction of new products to the market
through educating people
2.Attracting new customers by offering attractive
gifts.
3.Increase Sales through slack season
4.Create goodwill among the present as well as
prospective customers.
5.create good public image of the product and
the firm.

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Importance
From the point of view of manufacturers


it helps to increase sales in a competitive

market and thus, increases profits;
it helps to introduce new products in the
market by drawing the attention of potential
customers;
Existing stocks can be quickly disposed off;


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Cont…
From the point of view of consumers


the consumer gets the product at a cheaper

rate;
it gives financial benefit to the customers
the consumer gets all information about the
quality, features and uses of different
products;
certain schemes like money back offer creates
confidence in the mind of customers about
the quality of goods;
it helps to raise the standard of living of
people. By exchanging their old items they
can use latest items available in the market. 7
 Types of sales promotion
Customer Based

Trade Based


Samples Price-Off
Coupons Allowance
Discount or price off Free Goods:
Cash Refund offers Store administration
(Rebates) Trade Shows
Price Packs Trade Incentives
Premiums or Gift Offer
Contests
Prizes (Contests,
Sweepstakes,

Games)
Exchange offer
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Fair Exhibition/Events
 Differen
ce (e.g. Airtel)

Advertisement Sales Promotion

By using a variety of persuasive appeals, it offers Besides giving reasons in the form of different
reasons to buy a product or service. appeals, they offer incentive to the consumers to
e.g. Good Network, Promises and Delivers. buy the product or service now.
e.g. Extra balance, tariff, Free calling.
Appeals are emotional or functional in nature. Appeals are rational
e.g. endorsed by Madhvan & Vidya Balan, Shreyas
Talpade, new ad of Shahrukh. It justifies whatever it says.
Time-frame is long term. Time frame is short term.

The primary objective is to create To get sales quickly or to induce

an enduring brand image. trial.

Indirect and subtle approach towards Direct in approach to induce

persuading customers to buy a consumers to buy a product or
product or service. service

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Indian Retail scnerio

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Introduction
Over 12 M
illi
Outlets in on
India

Unorganiz
Organized ed
Retail < 3 Retail
%

Set to gro
w to 8-10% b
y 20 10

Organized
Retail exp
e cted to be
around Rs
.110,000 C
r( USD 25 b)
by 2 01 0

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Retail In India
Ø The Indian retail industry accounts for 10% of
GDP and 8% of employment.
Ø
Ø India is being touted as the next big retail
destination with an average three year
compounded annual growth rate of 46.64%.
Ø
Ø The Indian economy is poised to take the third
position in the world in terms of Purchasing
Power Parity by the year 2010


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ua





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Introduction
About Big Bazaar Hypermarket
Chain of Departmental Stores

Outlet 100 outlets in India

Located in 70 Cities
Parent group Pantaloon Retail Group (PRIL)
Subsidiary of Future Group

Owner Kishore Biyani

Founded 2001
Headquarter Jogeshwari, Mumbai
Industry Retail
Website www.bigbazar.com
Tag Line ‘is se sasta aur achha kahin nahi’

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Brief History
 The hypermarket chain was introduced in India
in 2001 by Pantaloon Retail(India) Limited
 The first store in Kolkata
 Pantaloon retail India Ltd was incorporated as
Manz Wear private Ltd in the year 1987.
 It became a public limited company in 1991
and was renamed Pantaloon Fashion Limited
and then Pantaloon retail Ltd in 1999
 The management was aware that in retail size
mattered .
 The targeted large Indian middle class market
waiting to tapped.

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
Big Bazaar – the
discount store was
launched in the year
2001, to meet the
aspirations of the
middle class. In the
span of two years, it
has added a Food
Bazaar and Gold
Bazaar to its range of
offering


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HIERARCHY

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Sales Promotion

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Sales promotions
 The main idea behind every effort is to make
a bulk purchase
“Saal ke sabse saste 3 din”


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Hafte ka sabse sasta din “Wednesday bazaar”
 For generating sale apart from weekends.


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Exchange Offers “Junk swap offer”
It’s a unique offer which only few companies
adopt.

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Junk swap offer
 The customer can bring anything old, such as
newspaper, and get coupons issued in exchange
of the junk. The customer can redeem the
coupons before the due date on the condition
that he/she shops four times the value of the
coupon.
The prices fixed by Big Bazaar are: clothes (Rs 200
per kg), newspaper (Rs 25 per kg),
plastics/utensils/leather goods (Rs. 75 per kg),
footwear/luggage (Rs. 100 per kg), Pet/beer
bottles (Rs 15 per kg), tyres (Rs 50 per kg),
furniture (Rs 75 per kg) and others (Rs 20 per
kg).
"This offer will help the housewife clean out the
junk while getting a good value for it," says Mr.
Sanjeev Agarwal, President (Marketing), 22
Latest Promotion technique in Diwali is “Gift
Idea 2009”
It comes under Premium or gift offers, Seasonal
offers to attract more customers

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Price packs (BUNDLING)

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 Price packs are among the most essential
sales promotional tool of Big Bazaar.


 FUTURE CARD (Discount Up to 3%)

 SHAKTI CARD – for the regular customers, to
give them extra wait age for their loyalty
towards Big Bazaar.

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Conclusion
In the present era of competition Sales
promotion is the vital part of promotional mix
it helps advertisement and personnel selling
efforts as well as it helps at point of purchase.
Almost all the techniques are used in retail
sector and it supports new product and
existing product to survive in the market.
Big Bazaar; as it is a hypermarket, to change
Indian customers perception it uses
traditional as well as innovative types of SP
like Junk Swap Offer.
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