EFFECTIVENESS OF SALES PROMOTION IN

SHOPPING MALLS

Submitted by :Group 12
Ankan Sengupta(109)
Aditya Verman(204)
Lakshay Mittal(227)
Mukul Gautam(232
Fahad Iqbal(260)

INTRODUCTION
Sales

promotion

refers
to
incentives and techniques directed
towards consumers and traders with
the intention to produce immediate
or short term sales effects

But, Why it is important in

Shopping malls???
almost 66% of all decisions
to buy something are made
while people are in the
store shopping

&

Around 53% of
those decisions
are classified as
impulse buying

Why would one visit shopping malls ?Few major reasons

shopping
mall
facilities

Visual
Merchandising Mix
Shopping Mood
The width of aisle in the
store
Shopping Mall lighting
Shopping mall size
Shopping Mall
atmosphere

quality of products
convenience in going
to store
good shopping
experience

Customer Care
fast billing
variety of products

Shopping Mall location

own-store label inside
shopping Mall
open for long hours
ATM accessibility

HOW DOES IT WORK???

AFTER SALES PROMOTION

BEFORE SALES PROMOTION

Uninterested
people

Reason for
going to
malls?

NORMAL FOOTFALL

FOOD

MOVIE

WINDOW
SHOPPING

People going for leisure only

low sales conversion
Less to no repeated visits

Interested
people

Reason for
going to
malls?

INCREASED FOOTFALL

FOOD

MOVIE

LAUNCH
EVENTS

SHOPPING

CONTESTS

CONCERTS

People going for wholesome

enjoyment
High Sales conversion
Repeated visits by interested
buyers

Two key performance indicators used by shopping malls sales and visits

DIFFERENT APPROACHES
Contests(Photo/Pick
your Favourite/Text
more)

Promotions groups with discount coupons

&

various establishments in the shopping mall will have

offers or promotions. Its a good idea to group these
promotions together, so that before customers reach the
mall they can find out if there are any interesting
promotions on

Selfie contest with specific

brands, Uploading of photos
of visitors on social media,
tagline contest etc.

Sweepstakes
are a very useful tool for obtaining a
customer database. By simply providing
their details, participants will be entered
into a sweepstake for a specific prize

Point-of-Purchase
(POP) Displays

One of the most effective ways for

retailers to encourage impulse
buying
Glossy posters showing
discounts, new arrivals etc.
definitely grab a lot of eyeballs

Showcasing Events(Product
launch/movie promotions)
Events in which the customer
gets to feel an expensive
products or enjoy free concerts
sponsored by a big brand etc.

LITERATURE REVIEW
Growing Shopping Malls and Behavior of Urban Shoppers
-Raja Gopal, Professor of Marketing (EGADE), ITSEM Mexico City Campus

Shopping malls attract buyers and sellers, and attract customers, providing enough time to make choices as well as a recreational means of shopping
This study examines the impact of growing congestion of shopping malls in urban areas on shopping convenience and shopping behavior
Based on the survey of urban shoppers, the study analyses the cognitive attributes of the shoppers towards attractiveness of shopping malls and
intensity of shopping
The results of the study reveal that the ambience of shopping malls, assortment of stores, sales promotions and comparative economic gains in the malls
attract higher customer traffic to the malls
The study concludes that out of all, sales promotion (Discounts) is the most important factor to increase footfall in a store

LITERATURE REVIEW
The Effect of Promotions in Malls: A Comparison between High-Involved and LowInvolved Shoppers in Youth Market
-Andrew Chan, Amy Mak , Kitty Leung

Mall developers can use either price-based promotion or entertainment-based promotion to attract mall traffic and influence the behavior of
the youth shoppers.
Thus, in this study, the team has investigated the interaction effect between type of promotion and consumer involvement in shopping on
consumer excitement
It has been argued theoretically that when a consumer's hedonic involvement in shopping is high, entertainment-based promotion (versus
price-based promotion) will result in higher consumer excitement
Besides, the difference in consumer excitement between entertainment-based promotion and price-based promotion will be larger among
high-involved shoppers than that of low-involved consumer
In contrast, when a consumer's hedonic involvement in shopping is low, entertainment-based promotion (versus price-based promotion) will
also result in higher consumer excitement, but the difference in consumer excitement between entertainment-based promotion and pricebased promotion will be smaller than that of high-involved consumers
Moreover, it has been proposed that consumer excitement ( Due to both type of promotions) is positively related to desire to stay in mall and
mall re-patronage

LITERATURE REVIEW
Driving Factors and Effectiveness of Sales Promotion in Shopping Malls in Iran
-Alireza Miremadi, Farhad Sadeh, Narges Borji and Sanaz Naji

This research is to evaluate the sales promotion attributes and retailing attributes as driving factors of customers to buy from two main
shopping malls of Kish Island, Iran
168 customers of these two shopping malls were used in this research
To evaluate these attributes and find the gaps between customers minds and ideal point, the Ideal-point model were used
The results show that in which attributes we have high gaps and need to focus on them and which attribute is our strength point
It can be understood from factor analysis that Iranian shoppers give more importance to visual merchandising mix, shopping mood,
Customer care, and shopping mall facilities
However, open early, shopping mall size, own store labeling and the width of aisle coming with shopping mall lighting are also most
important shopping mall attributes to capture in the mind of Iranian shopper foe selecting the shopping mall in Kish island in Iran
Finally, some programs have been suggested according to findings to decrease these gaps and improve the shopping malls effectiveness

LITERATURE REVIEW
A study of sales promotion mix on customer satisfaction with
reference to shopping malls in Indore city
-Kour, Ubeja Satnam; Bedia, D. D
The purchase of goods or services includes a number of factors that could

affect each decision

Customer satisfaction is more complex and even more important for
retailers today than in past
Mall intercept survey was conducted to study of sales promotion mix on
customer satisfaction in shopping malls of Indore city and the sample
included 200 active mall shoppers
The sales promotion mix on customer satisfaction was identified by a
structure questionnaire and captured in 5 factors of sales promotion mix
These sales promotion mix factors were Lucky and Bumper offers, Frequent
and Warranty Offers, Monetary and Quantity Benefit Offers, Gift and
Exchange offers and Discount offers.
The study will help the managers of shopping malls to understand the
underlying sales promotion factors. Profiling customers by their choice of
sales promotion mix provide more meaningful ways to identify and
understand various customer segments and to target each segment with
more focused marketing strategies

LITERATURE REVIEW
Assessing the effectiveness of shopping mall promotions:
customer analysis -Andrew G. Parsons

Common promotional activities employed by shopping mall marketers were ranked by a sample of customers on their likelihood of
encouraging increases in the two key performance indicators used by shopping malls sales and visits
Results suggest clear distinctions between sales drivers and visit drivers and show possible combinations that would be effective in
generating optimum customer behavior
Some traditional promotions (fashion shows and product displays) are shown to be poor performers in generating either response, whilst
school/community displays appear to be encouraging noncustomer visits
Whilst mallwide sales are the preferred promotion, a combination of general entertainment and pricebased promotions are found to
be a strong alternative way to encourage visits and spending
Actual sales, visits, and promotional types for a threemonth period were analyzed to assess the degree to which customers behavior
matched stated behavior likelihood, with supportive results

METHODOLOGY
Objective: To analyze different sales promotion
schemes to be used inside shopping malls

Rationale: Most of the shopping decisions are

made around stores. It provides us immense
opportunities use promotion techniques in
malls to our benefit.

Primary and Secondary Research

Sample Population: A sample of 43 respondents
were used

Data Collection Tools: A questionnaire is used

as a data collection tool. The research type is
exploratory.

Data Analysis: Data analysis was done with the

help of tools like MS excel and correlation was
established between the effect of different
techniques

Recommendations: Recommendations were

collated based on the insights derived from
data analysis

CUSTOMER SURVEY
Total respondents : 64

Age Distribution
8

Gender

Occupation

16

12
48

40

15-18

19-24

25-35

>35

Males

Females

Student

Employee

Business owner

Others

Do you wait for sales promotion to shop at malls

Do you buy more than usual during sale promotion

18
20

Yes

30

13
Yes

No

No

Sometimes

Sometimes
31

16

Do you switch brands during sales promotions

20
25

Yes
No
Sometimes

19

In which case do you notice the promotion more?

34% of people chose digital media

30% of people chose interactive activities within the mall
23% chose hoardings outside the mall
17% chose banners outside individual stores

Survey was carried out on customers coming into Spark Mall, Kamla Nagar
A questionnaire with these people and 64 responses were collected
Respondents were given a set of options for each question
Majority of customers were students of Delhi University

AIDA MODEL FOR SALES PROMOTION

IN MALLS
Aware
-ness
Less
Effec
tive

Creating brand awareness

Generating interest in the
benefits of you product

Interest

Desire
More
Effec
tive

Action

Creating desire through

emotional connection
Move the buyer to interact
with the product

CHALLENGES FACING SALES

PROMOTION IN SHOPPING MALLS
Competition from Online
Shopping
Omni channel dilemma:
Omni Channels purchase
behavior i.e. customers see
the product in malls, purchase
it online
Turning online traffic into foot
traffic
Further Challenges:
Data Management: Analyzing the collected data
in offline stores
Keeping cost low: in contrast with low inventory
online models

Competition from unorganized sector

92% retail is unorganized
93% of India's workforce is in
unorganized sector
50.6 percent of the country's GDP
(2005)

RECOMMENDATIONS
Promoting Click-and-Collect
shopping
Embracing digital (online and
mobile) to deal with
multichannel dilemma
Buy online & pick-up in store
is an essential offering

Being local
Combining expertise in local product
search and promotional application
building
Localizing solutions by establishing
familiarity with the audience,

Effective frontline Salesforce

With offline traffic dropping retailers must be
able to convert more customers

Be Inventive
Convey the message during the moment of truth,
which is that of consumption
Transform a mundane moment into a magical
one, for eg. HUL magic cups in Kumbh Mela

Be Big
Creating a visual
spectacle is one way of
driving the message
home
Gigantic effigies

THANK
YOU