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MARKETING STRATEGIES IN CREATING BRAND IMAGE OF

FMCG IN INDIA WITH SPECIAL REFERENCE TO STORE
PROMOTION

A Thesis Submitted to
Devi Ahilya Vishwavidyalaya, Indore
For the Award of Degree of
Doctor of Philosophy in Management

Supervisor : Investigator :
Dr. Geeta Nema Ms. Astha Joshi
Reader
IIPS,DAVV,Indore

Research Centre
INTERNATIONAL INSTITUTE OF PROFESSIONAL STUDIES
DEVI AHILYA VISHWAVIDYALAYA, INDORE (M.P.)
 CERTIFICATE OF THE SUPERVISOR

CERTIFICATE

This is to certify that the work “Marketing Strategies in Creating Brand Image of FMCG
in India with Special Reference to Store Promotion” is a piece of research work done by
Ms. Astha Joshi under my guidance and supervision for the degree of Doctor of
Philosophy from Devi Ahilya Vishwavidyalaya, Indore (M.P.) India. That the candidate
has put in an attendance of more than 200 days with me.
To the best of my knowledge and belief the thesis:

01. Embodies the work of the candidate herself.

02. Has duly been completed;

03. Fulfills the requirements of the ordinance relating to the Ph.D. degree of the

University, and

04. Is up to the standard both in respect of contents and language for being referred to

the examiner.

Supervisor Forwarded by

Dr Geeta Nema Dr. B.K. Tripathi

Reader Director
IIPS, DAVV, Indore IIPS, DAVV, Indore

Signature: ________________ Signature: ________________

Date: _________ Date: _________

 Declaration of Originality

I, Astha Joshi , declare that the thesis " Marketing Strategies in Creating Brand Image of
FMCG in India with Special Reference to Store Promotion” is my own work conducted
under the supervision of Dr. Geeta Nema at International Institute of Professional
Studies, DAVV, Indore approved by Research Degree Committee. I have put in more
than 200 days of attendance with the supervisor at the centre.

I further declare that to the best of my knowledge the thesis does not contain any part of
any work which has been submitted for the award of any degree either in this University
or in any other University/Deemed University without proper citation.

Besides this-
1. I have successfully completed the Course work of one semester as per UGC-
Regulation 2009 norms.
2. I have also given a pre-Ph.D. presentation and successfully incorporated the changes
suggested on the basis of feedback and comments received.
3. I have also published one research paper in a ISSN/referred journal from the research
work of the thesis and has produced an evidence of the same in the form of acceptance
letter/or the reprint.

Researcher Supervisor
Ms. Astha Joshi Dr. Geeta Nema
Reader, IIPS, DAVV, Indore

Signature : Signature :
Date : Date :
 ACKNOWLEDGEMENT

It is not possible to complete research work without the help of others. A number of
individuals have helped me in this endeavour. I shall be failing in my duty if I do not
express my heartiest thanks and deep sense of gratitude to all those persons who have
helped me in carrying out this research work.

First and foremost, I owe a great intellectual debt to my supervisor & guide Dr. Geeta
Nema, Reader, IIPS, DAVV, Indore for the inspiration and insight provided by her for
the completion of this research work. Her learned suggestions and expert comments
based on her deep academic knowledge and vast practical experience proved to be a
great help to me, without which this study could have remained an unfulfilled dream. I
also want to thank Director IIPS and all the staff members of IIPS for necessary support
and facilities at the research center.

I am also thankful to all the respondents for their kind cooperation during the study.
Moreover, their support in making me available the desired information cannot be
forgotten.

I am very much indebted to my parents Mr. Sunil Joshi, Mrs. Neeta Joshi and
grandparents whose blessings and prayer have given me all strength and courage to
complete this research work. Moreover, this work could not have been completed
without the constant moral support and encouragement from my friends and family
members especially my sister Avni Joshi and my brother Anuj Joshi. I am deeply
indebted to the various sources of information from relevant sites from internet and
books which helped us a lot in my study and helped me to learn a lot. At the last but not
least 1 would like to remember the almighty whose blessings no work in this world can
be completed successfully.

Date: (Astha Joshi)

Place:
 Index

S. No. Contents Page No.

CHAPTER 1 – INTRODUCTION
1 Introduction 1
1.1 FMCG 6
1.1.1 FMCG sector in India 8
1.1.2 Impact of the FMCG sector in India 11
1.1.3 Government Policies and Regulatory Framework 14
1.1.4 New launches and product extension by FMCG companies to 16
boost growth and market share
1.2 Marketing strategies 18
1.2.1 Market Segmentation 20
1.2.1.1 Basis of Segmentation 21
1.2.1.2 Finding the need 21
1.2.1.3 Consumer Market Segment 22
1.2.1.4 Organizational market segmentation 22
1.2.2 Target Marketing 23
1.2.2.1 Evaluating segment 24
1.2.2.2 Targeting Strategies 24
1.2.3 Market Positioning 27
1.2.4 Types of Marketing strategies 28
1.2.5 Marketing strategy process 30
1.2.6 AIDAS model 37
1.2.7 Marketing Communication 40
1.2.7.1 Marketing Communication Process 41
1.3 Brand Image 46
1.3.1 Benefits of Strong Brand Image 48
1.3.2 Provider Driven Image 50
1.3.3 Product Driven Image 51
1.3.4 User Driven Image 51
1.4 Store Promotion 52
1.4.1 Attractive product display 55
1.4.2 Special discount 56
1.4.3 Gifts 57
1.4.4 Prizes (contests, sweepstakes, games) 58
1.4.5 Layouts 60
1.4.6 Signage 61
1.4.7 Floor advertisement / Floor Graphics 63
1.4.8 Free Items 64
1.4.9 In store Television display 65
1.4.10 In store radio 66
1.4.11 Vouchers/coupons 67
1.4.12 Background music 68
1.4.13 Shop congestion / crowding/shop density 69
1.4.14 Behaviour of sales people 70
1.4.15 Store fragrances 71
1.4.16 Ventilation/ Store Atmosphere 72
1.4.17 Cash discounts 73
1.4.18 Parking Space 73
1.4.19 Location 74
1.5 Marketing Strategies in building Brand Image of FMCG 75
1.6 Rationale of the study 83

CHAPTER 2 - Review Of Literature 86

CHAPTER 3 – OBJECTIVES and HYPOTHESIS
3.1 Objectives 125
3.2 Hypothesis 125
CHAPTER 4 - RESEARCH METHODOLOGY
4 Introduction 127
4.1 Research Design 127
4.1.1 The Study 128
4.1.2 Sample Design 128
4.1.3 Tools for Data Collection 130
CHAPTER 5 – DATA ANALYSIS TECHNIQUES
5 Introduction 131

5.1 Reliability statistics 131

5.2 Frequency distribution 132

5.3 Regression 132

5.4 Chi-square test 133

5.5 ANOVA 133

5.6 One-Sample Kolmogorov-Smirnov Test 134

CHAPTER 6 - FINDINGS and DISCUSSION 135

CHAPTER 7 - Conclusion 158

CHAPTER 8 - Scope for further Research 166

CHAPTER 9 – Limitations 167

Bibliography 168

Appendices

Questionnaire

Research Paper
 List of Figures

Figure no. Title of Figure Page No.

1.1 Types of Fast Moving Consumer Goods 7
1.2 Classification of Fast Moving Consumer Goods 10
1.3 Marketing strategy 19
1.4 Target Marketing Strategies 25
1.5 Marketing Strategy Process 31
1.6 Components of Marketing Mix 34
1.7 Marketing Communication model 45
6.1 Frequency distribution by Age 136
6.2 Frequency distribution by Gender 137
6.3 Frequency distribution by Income 138
6.4 Frequency distribution by Qualification 139
6.5 Frequency distribution by Marital Status 140
6.6 Frequency distribution of Occupation 141
6.7 Frequency distribution of Purchase Pattern 145
6.8 Frequency distribution by level of Influence 146
6.9 Frequency distribution by level of Awareness 147
6.10 Frequency distribution by Influence of Brand Image 148
6.11 Frequency distribution by Influence of Store Promotion 149
Strategies
6.12 Impact of Store Promotion strategies 156
7.1 Types of Marketing Strategy 159
7.2 Store Promotion Techniques and Impact on Purchase of 163
FMCG
 List of Tables

Table No. Title of Table Page No.

6.1 Case Processing Summary 135

6.2 Reliability Statistics 135

6.3 Chi-Square Test 141

6.4 One-Sample Kolmogorov-Smirnov Test 150

6.5 Model Summary of regression 153

6.6 ANOVA 154

6.7 Coefficients 155

 CHAPTER-1
INTRODUCTION

S. No. Contents Page No.

1 Introduction 1
1.1 FMCG 6
1.2 Marketing strategies 18
1.3 Brand Image 46
1.4 Store Promotion 52
1.5 Marketing Strategies in building Brand Image of FMCG 75
1.6 Rationale of the study 83
1. INTRODUCTION:

In today’s competitive environment where the customer has got tremendous choice for
selecting brands, it is a very challenging task for a marketer to attract new and retain the
old customer. To accomplish this objective the marketer uses different types of marketing
strategies to position their product in the mind framework of the customer and establish
their brand image in the market.

Marketing strategies are a method of utilizing the marketing mix to satisfy and attract
consumers to make a profit for the organization. The marketer should find out what the
consumers wish to purchase and how much they are willing to pay. The company should
then decide whether the desired product can be produced and sold at the price consumer
will pay and at a profit to the company. Modern marketing begins with the customer, not
with production, sales or technological advancements and last with the customer
satisfaction and social well-being. Under market-driven economy, buyer or customer is
the king.

With liberalisation and globalisation the availability of products and services has
increased. The customer has wider choice and he is demanding more and more benefits
and the competition is increasing in the market place. The core of marketing concept is
that the customer and not the product shall be the axis of business systems. All business
operations revolve around customer service and satisfaction and many companies are
following customer oriented philosophy to ensure growth in sales, profits and market
share.

Fast moving consumer goods are the products which are used by the consumer frequently
and have a small shelf life and are purchased at a fast rate thus marketer must focus on
strategies to make their customers satisfied which ultimately helps a marketer to bring in
new customers. FMCG are known as low involvement products as consumer spends less
time and energy in buying these goods.

Now a day’s FMCG goods are purchased from various retail stores. With the trend of
shopping shifting to malls, the store culture has emerged as a very important tool to

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attract customers. Consumers prefer to visit a retail store where they can purchase variety
of products under one roof, not only consumers but producers also prefer to sell their
products through various retail stores. Earlier the products were sold through local stores
or Kirana stores where the shopkeeper only provides those products which were asked by
the consumer, but the store culture allow them to have a look at all the various available
options which they can compare and then select the best among the lot.

The word ‘Retail’ is derived from the French word ‘Retailer’ meaning to cut a piece off
or to break bulk and involves direct interface with the Customer. Retailing involves all
activities directly related to the sale of goods and services to the final Consumer for
personal and non business use. Retailer is a person, agent, Company or organisation
engaged in reaching goods or services to the end-user or ultimate Consumer.

Retail trade may be defined as “A trade, which constitutes of selling goods to ultimate
consumers of a variety of products in small lots, distribution and he satisfies recurrent
needs of consumers. The retailer operates near residential area and he sells directly to
consumers. He is the relating link between the company and the consumer. Retailers have
personal contacts with the consumers and can provide valuable information about
changes in consumer wants and preferences to the distributors and manufacturers.

The Indian retail sector, though dominated through grocery shops/kirana stores, has been
witnessing emergence of corporate retail chains such as RPG Retail, Pantaloon Retail,
Shoppers stop, Reliance Fresh, Aditya Birla Groups More’, Croma (Tata). These large-
format stores known as organized retail stores provide a wide range of product and brands
at attractive prices and pleasant shopping experience for family members. The main
objective is to provide the customers with 3 Vs i.e., value, varity and volume. Apart from
Four Ps, service marketing includes three more Ps i.e., People, Physical evidence and
Process. P (place) includes convenience for shopping, stores interiors and store location.

In our country organized retailing is the largest employer after agriculture; it employs
about seven per cent of the work-force and has an overall contribution of 14 % to the
national GDP. With a total population of over 100 crores, organised retailing is still at its
infancy in India. We have the largest network of retail stores but only about 4 per cent of
them are larger than 500 sq. feet. For a long time, the corner grocery store was the only

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choice available to the consumers and this is slowly giving way to international format of
retailing.

Today retailers are confronting a sharp aggressive market and are discovering it
progressively hard to make a differential favorable position on the premise of item
(stock), value, advancement, spot, individuals and area and as of right now the store itself
turn into a prolific and last open door for business sector separation. Today customers
have numerous shopping decisions, as the product is accessible effortlessly. Some shop
on the web they don't need to stress over the extend periods of time of operation, stop
‘getting product from market. So when contrasted with the past with advancement in
innovation retailers occupation have turned out to be more troublesome.

Retailers need to make an energizing store plan with creative marketing systems to make
individuals come and visit the stores. Here comes the part of advertiser who makes the
store plan. Advertiser likes to think about their store as theater. The dividers and floors
speak to the stage. The lighting, apparatuses, and visual interchanges, for example, signs
speak to the sets.

Retail locations likewise give organizations an opportunity to pull in new purchasers to

buy their item by utilizing different store special strategies which make a brand picture
for the item. Because of the quick changes in the worldwide business sector and the
expanded rivalry experienced between FMCG firms, "Brand Management" has turn out to
be more essential. Great brand administration realizes clear separation between items,
guarantees customer steadfastness and inclinations and may prompt a more prominent
piece of the pie. The term brand has diverse importance connected to it; a brand can be
characterized as a name, logo, image and personality or a trademark.

A capable brand will improve customer’s attitude strength of the item relationship of a
brand, which is produced by involvement with the item. Brand name and what a brand
remains for are the centre qualities for most fast moving customer merchandise (FMCGs).
The essential trait of a Fast moving consumer goods are likewise vital for a FMCG brand
to exceed expectations in light of the fact that the quality of a brand normally give the
crucial strides to separating between a few contenders. Dominant part of the FMCG
brands have recognizable brand identifiers, for instance Lux soap, cadbury’s bournvita,
thumbs up etc.
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Branding is linked to a wider concept i.e. overall business strategy and only when
business strategy is defined can the brand values be developed. The connection between
branding and business strategy also means that branding strategies may need some
alteration as the basis of the business changes. By using various marketing strategies
companies creates a positive brand image which leads to brand loyalty. Loyalty is won
through delivery of superior customer experience.

The symbolic aspects of branding can also persuade brand loyalty. Brand loyalty refers to
the consumer’s behaviour of time after time purchase a specific brand over a definite
period of time. This is based on the past behaviour and the brand loyal consumer’s is
expected to purchase a particular brand at present and in the future, thus to make the
experience of customer worth remembering marketer must provide all possible facilities
to convert a consumer into brand loyal consumer. Brand loyalty is important for
marketers because it helps in retaining customers and often requires less marketing efforts
than to acquire new ones. It also has positive implications on brand equity.

In today’s competitive world where the customer is having varied choices in terms of
brands, the customer is very choosy in selecting a specific product or brand. Hence, the
marketers have started using the concept of store promotion to cater the immediate needs
of the customers and make them satisfied.

Marketing professionals and specialist use many tactics to attract and retain their
customers. Sales Promotion strategies can help create that positive customer image that
leads to successful sales. Sales promotion spending plan covers very nearly 70% of the
aggregate customer deals special spending plan. It is additionally considered as a brand
differentiator by numerous huge players like Coca-Cola, Pepsi, Heinz and some more.
For some business specialists and scholastics, deals advancement is viewed as run of the
mill promoting strategies that increase the value of an item with a specific end goal to
accomplish particular advertising objectives.

The main role of offers advancement is to instigate the customers to settle on a speedy
purchasing choice keeping in mind the end goal to make expands deals. Commonplace
sample of offers advancement is to offer customers to take risk of winning a prize or
offering some additional items with the same cost. Deals advancement and advertising are
between related yet do not have the comparative reason. It is publicizing which makes a
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stage for deals advancement where clients can see the direct included benefit of
purchasing a product. Then again, publicizing is an impalpable advancement of the
product to send the showcasing message to the customer-base.

Store promotion is a marketing strategy that is formed to bring people into the store and
to purchase specific items highlighted through store promotion. These promotion
strategies most often come directly from manufacturers, or they may be offered by the
store manager. The reason behind this is to generate additional revenue due to the extra
sales of the products, or even to encourage a brand switch when presented by the
manufacturer. These strategies help to drive traffic in the store, to remove too much stock,
or to generate additional revenues when sales are slumping. It also helps in building the
brand image and creates customers intention to buy a specific product or brand.

According to an article in economic times several ecommerce companies are opening

physical stores to give clients a touch and-feel experience of items and emerge in the
disorder of the inexorably overwhelmed online retail space. Flipkart, Zivame, Pepperfry,
FirstCry and Lenskart have begun logged off experience zones to separate their offerings
from their online adversaries and to build their validity. FirstCry.com, an online children
wear organization, decreased its showcasing spending plan by 25% subsequent to opening
135 physical stores. Flipkart, the biggest Indian ecommerce organization, has taken off 20
disconnected from the net stores crosswise over 10 urban communities and would like to
extend to 100 experience zones by March.

The organization dispatched the stores in conjunction with its logistics arm eKart — a key
component in its provincial development procedure. Lenskart began opening
disconnected from the net stores in January. As of now, the online eyewear retailer has
around 110 stores crosswise over India and targets 1,000 by 2020. Specialists said the line
in the middle of online and disconnected from the net is getting obscured as organizations
from one side traverse to the next and the other way around. Retailers including Reliance,
Tata and Future Group have wandered online as a major aspect of their technique to draw
in more clients. Thus store promotion has become a very important tool for every
company.

This strategy of store promotion is widely used by the manufacturers of FMCG products
as these are the products which are consumed by the customers frequently and regularly.
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Also in case of Fast Moving Consumer Goods, large numbers of variants are available
which provide the marketer the scope to use such promotional strategies which can
convince the customer to purchase their products by creating brand image.

Brand image is the consciousness in the consumer’s mind of a brand's total personality. It
is developed over time through advertising campaign with a constant theme, and is
authenticated through the consumer’s direct experience which can be formed using in
store promotional activities. Thus the study aims to understand the impact of each store
promotion tool in building brand image of a FMCG product and also the overall impact of
store promotional tools on consumer buying decision in FMCG products.

1.1. FMCG:

Fast Moving Consumer Goods (FMCG) are also well-known as consumer packaged
goods (CPG) are products that are sold rapidly and usually consumed at a habitual basis,
as divergent to durable goods such as kitchen appliances that are replaced less frequently.
The FMCG industry mainly includes the production, distribution and marketing
operations of consumer packaged goods.

Fast moving consumer goods are consumed by the consumers for their own use and
purchased repeatedly. Consumers procure these products on regular intervals in small
quantity. The price of such products per unit is low. The consumption of such products is
very high due to the consumer’s necessity for Fast Moving Consumer Goods. FMCGs
usually refer to as non-durable products which are consumed in a short span of time, and
are often consumed daily Indian population is a huge population over 120 crore. A
separate sector called FMCG sector is well established in India.

India has always been a country with a big part of world population, be it the 1950’s or
the twenty first century. Taking that into consideration, the FMCG market potential has
always been very big in India. However, from the 1950’s to the 1980’s investments in the
FMCG sector were very less due to stumpy purchasing power and the government’s
unconditional support to the small-scale sector. FMCG sector is the fourth largest sector
in the economy with a total market size in excess of Rs 60,000 crore.

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The giant players in this sector include Sara Lee, Nestle, Unilever, Coca-Cola, Carlsberg,
General Mills, Procter & Gamble, Pepsi, Reckitt Benckiser, Kleenex, Mars and many
more. In recent years, the fast moving consumer goods sector (FMCG) has encountered
increased use of marketing strategies all over the world. This sector is characterized by
products which have low unit value, require frequent purchases and consumer behaviour
reflecting a lesser amount of loyalty, impulse buying, and less involvement on the part of
a consumer.

Every day, every minute, from the start to the end of the day, we are bounded by products
which make our life easier in a lot of ways. And this is achievable due to the dedication
and effort of FMCG companies. Examples of FMCG products comprise toiletries, soap,
cosmetics, oral hygiene, detergents, packaged food products, soft drinks, shaving
products, candy and chocolate bars, etc. This industry essentially comprises Consumer
Non Durable products which are required to fulfil the everyday need of the population. A
customer generally spends least amount of effort to procure them. Based on the prime
factor behind consumers buying, FMCG’s can be divided into three classes:

Figure 1.1: Types of Fast Moving Consumer Goods

FMCG

Staples Impulse Goods Emergency Goods

Source: Product management in India by Ramanuj Majumdar, Page no- 36-37

Staples Goods - Goods that consumer purchases on a regular basis. For example toilet
soap, detergent, sauce, toothpaste, biscuits etc.

Impulse Goods- Goods which are purchased with any planning or searching. These good
are usually purchased due to external stimulus. For example soft drink, potato chips
which are displaced in the stores because shoppers may not have thought of buying until
spotting them.

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Emergency Goods- Emergency Goods are those goods which are purchased when the
need for that particular product arises. For example the requirement of seasonal products
such as umbrella required at the time of monsoon or sweaters in winters.

1.1.1. FMCG SECTOR IN INDIA:

India is one amongst the fastest developing economies in the world and its population
and territory are big also. Population is nearly 120 crore and territory is from J and K
to Kerala, from Assam to Gujarat is very wide. The industries are of different types
and markets are of different types and can be segmented as urban, sub- urban and
rural markets. The rural market is very wide and still it is difficult to cover. Nearly 70
percent of Indian population is living in rural areas. There is a great opportunity for
companies in Indian markets including FMCG sector for the companies in Indian
markets. Up to 1991 Indian economy was a protected economy and in this year due to
liberalization a good number of MNCs have entered in India market and mainly in
FMCG sector also.

With a population of 1.28 billion, India is one amongst the largest economies in the
world in terms of purchasing power and growing consumer expenditure, next to
China. The Indian FMCG industry, with an approximate market size of 2 trillion is the
fourth largest sector in India. In the last few years, the FMCG sector has grown-up at
an average of 11% a year; in the span of five years, annual growth has increased at a
compounded rate of 17.3%.

FMCG sector is characterized by strong presence of global businesses, intense

competition between organized and unorganized companies, well recognized
distribution network and less operational cost. Availability of key raw materials,
cheaper labor costs and existence across the whole value chain gives India a
competitive edge. During 2012, the country witnessed soaring inflation, muffled
salary hikes and slow economic growth, which affected the FMCG sector with
companies having reduction in volume growth which were seen in their quarterly
results. However, the trend seen in 2012 accelerated in 2013 as growth came from
rural dwellers through a rise in their disposable incomes.

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There is tough competition from local and foreign companies in Indian markets. They
have started producing products like skin care, toothpaste, toiletries, fast food,
chocolates, cosmetics and many other products. The FMCG sector is flooded by
companies from India and abroad. In future the intensity of competition would
increase further. The situation in Indian economy is very favourable for foreign
companies. The major factors attracting them are availability of raw materials, low
labour cost, market potential for consumption and more disposable income of Indian
customers. More over the GDP in Indian economy is increasing every year so per
capita income increasing and there is scope for further development. At present large
and small companies are operating in Indian FMCG sector.

Fast moving consumer goods comprise of a large part of consumers’ income in all
countries. The fast moving consumer goods sector is an important contributor to
India’s GDP. The Indian FMCG sector is extremely fragmented with almost half the
market covered by unbranded, unpackaged home made products. The FMCG sector is
the fourth largest constituent of Indian economy with a market size of about Rs.
130,000 crore. India’s FMCG sector is the fourth largest sector in the economy and
provide employment to more than three million people in downstream activities.

The fast moving consumer goods market is expected to increase at a compound

annual growth rate of 14.7 per cent to touch US$ 110.4 billion in the period 2012-
2020 according to India brand equity foundation.

FMCG sector is the most competitive and growing sector as customers require these
products on regular basis and their demand for FMCG products keeps on increasing,
thus the companies need to promote their products so that they appear different and
better from the competitor’s product. Indian companies have their vicinity over the
quality chain of FMCG segment, right from the supply of crude materials to bundled
merchandise in the nourishment preparing part. For instance, Amul supplies milk and
dairy items like cheese, butter, etc.

9
 Figure 1.2: Classification of Fast Moving Consumer Goods

Source: Dabur, Aranca Research

FMCG product categories consist of food and dairy products, pharmaceuticals,

consumer electronics, packaged food products, household products, drinks and others.
On the other hand some common FMCG’s include coffee, tea, detergents, tobacco and
cigarettes, soaps and others.

Fast moving consumer goods will get to be Rs 400,000-crore industry by 2020. A

Booz and Company study discovers the patterns that will shape its future. Another
report by Booz and Company for the Confederation of Indian Industry (CII), called
FMCG Roadmap to 2020: The Game Changers, defines the key development drivers
for the Indian quick moving shopper merchandise (FMCG) industry in the previous
ten years and distinguishes the huge patterns and considers that will affect its future. It
has been evaluated that FMCG segment saw powerful year-on-year development of
around 11 for each penny in the most recent decade, very nearly tripling in size from
Rs 47,000 crore in 2000-01 to Rs 130,000 crore now (it represents 2.2 for every penny
of the nation's GDP).

Development was significantly quicker in the previous five years — just about 17 for
each penny every year since 2005. It recognizes strong GDP development, opening up
of rustic markets, expanded wage in country ranges, developing urbanization
alongside advancing customer ways of life and purchasing practices as the key drivers
of this development. It has been evaluated that the FMCG business will develop no
less than 12 for each penny every year to wind up Rs 400,000 crore in size by 2020.

10
Furthermore, if a percentage of the components play out positively, say, GDP grows
somewhat speedier, the legislature evacuates bottlenecks, for example, the
merchandise and benefits charge, foundation ventures get, there is more productive
spending on government endowment et cetera, development can be essentially higher.
It could be as high as 17 for each penny, prompting a general industry size of Rs
620,000 crore by 2020.

Abhishek Malhotra (2010) told that the Indian GDP per capita is low however
numerous Indian purchaser fragments which constitute rather vast outright numbers
are either near or have as of now come to the tipping purpose of fast development.
The segment is balanced for fast development throughout the following 10 years, and
by 2020, the industry is required to be bigger, more dependable and more tuned to its
clients. Taking into account research on industry advancements in different markets
and talks with industry specialists and experts, Booz and Company has recognized
some essential patterns that will change the substance of the business throughout the
following ten years.

1.1.2. IMPACT OF THE FMCG SECTOR IN INDIA:

The fast-moving consumer goods sector is an important contributor to India’s GDP

and it is the fourth largest sector of the Indian economy. Products in this sector are
meant for repeated consumption and they usually yield a high return. The most
familiar in the list are toilet soaps, detergents, shampoos, toothpaste, shaving
products, shoe polish, packaged foodstuff, and extends to some electronic goods. The
Indian FMCG sector which is the fourth biggest sector in the India contributing to a
market size of `2 trillion with rural India contributing to one third of the sector’s
revenues.

FMCG companies have to incur a lot of money in heavy advertising, marketing,

packaging and distribution. The pricing of the finished product also depends on the
cost of raw material used in production. The growth of the sector has been driven by
both the rural and urban markets. India is one of the most attractive markets for
foreign FMCG players due to easy accessibility of imported raw materials and cheap
labour.

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For years now, food items have been the most extensively distributed FMCG products
in the country. But the scenario is changing. Indians are more likely to find more of
personal care products in comparison to food in a shop these days which is the result
of consumer goods companies pushing the distribution of an entire collection of their
products in the hand of wary consumer. Latest data from market research firm Nielsen
reveals that on the list of the top five FMCG product categories, only one food
product i.e. biscuits finds place. The category with the maximum penetration is
shampoos at 79%, followed closely by biscuits at 78%.

The FMCG market is estimated to treble from its current situation in the future.
Penetration level as well as per capita consumption of most product categories like
jams, toothpaste, skin care and shampoo in our country is low, indicating the untapped
market potential. The growing population in our country, predominantly the middle
class, present an opportunity to makers of branded products to switch consumers to
branded products.

Distribution of categories has undergone a remarkable transformation in the past 15

years. According to D Shivakumar, chairman and CEO, PepsiCo India FMCG is
available in 8.8 million outlets and shampoo is available in 80% of those outlets.

He also added that "Skin creams have managed to get to the top 10 distributed
products and packaged tea, which was earlier the most distributed product, is now out
of the top 10 list. Data suggests that most of this evolution is due to the shifting of
consumption pattern of consumer’s preference to branded products from non-branded
products.

For instance, in utensil cleaners and edible oils incursion has amplified to 36% from
33% and 21% to 17% from 2012 to 2014, respectively. "Earlier, people would visit at
shops with bottles to buy mustard oil. That's changing with rising affluence levels and
lower packaging costs. In coming future, more unbranded to branded consumption in
non-mature categories such as, hair oils and hair conditioners will be seen," says Vijay
Udasi, executive director, Nielsen India.

The discoveries likewise uncover a drop in infiltration levels of cleansers cakes and
banishes from 60% in 2012 to 59% in 2014 as more purchasers movement to clothes
12
washers to do their clothing. Additionally, skin creams have likewise seen a drop of
2% because of changes in purchaser conduct. "The portions inside of the skin creams
class have likewise changed. More individuals are purchasing developing items like
face washes, hostile to maturing and under-eye creams," says Udasi official chief,
Nielsen India.

For HUL, next step now is to make its brands available utilizing pack sizes and value
focuses customized to win the nation over. "We have possessed the capacity to keep
up our authority position in a following so as to develop business sector a business
sector improvement approach. A standout amongst the best endeavors on this front
has been the Dove 'twin sachet', which offers a cleanser and conditioner together at a
Rs 5 value point to impel trials," says Srirup Mitra, classification head - Hair Care,
HUL.

However, the predominance of non-nourishment classifications on the top could

change. There are dismal signs. Take the salty snacks classification for occasion.
Entrance has ascended from 58% to 64%. Indeed, even a classification like noodles,
which has still not broken into the main ten rundown, has seen an increment in
infiltration from 38% to 42%. "The following level of development exists in marked
nourishments," says Udasi. "There is a development of new sustenance classes in
bread spreads, including nutty spread and other flavours also. As opulence levels rise,
country shoppers will spend more on basic supply things and nourishment."

The Indian FMCG sector stands as the fourth largest sector in the economy with a
market size of US$13.1 billion. The sector has well established distribution networks,
and also has intense competition between the organised and unorganised sector.
FMCG sector in our country has a tough and competitive MNC existence across the
entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4
billion in 2015 from US $ billion 11.6 in 2003.

The markets which have high potential and give brand makers the opportunity to
influence the customers to purchase branded products are the middle class and the
rural segments. In India most of the product categories like jams, toothpaste, skin
care, shampoos, etc which have low per capita consumption as well as low
penetration level, but the potential for growth is huge have a lot of demand. The
13
Indian Economy is rolling forward by leaps and limits, keeping pace with swift
urbanization, rising literacy levels, and growing per capita income.

The giant firms and small-time companies in FMGC sector are raising higher and
growing up fast. In a study conducted by AC Nielsen, 62 out of 100 brands belong to
MNCs, and the remaining by Indian companies. Fifteen companies own these 62
brands, and 27 of these belong to Hindustan Lever. Pepsi stands at number three and
next to it is Thums Up. Britannia occupies the fifth place, followed by Colgate (6),
Nirma (7), Coca-Cola (8) and Parle (9).

Despite the fact that FMCG development has been abating for quite a while, sliding
by 8.1% from 2010 to 2013, Nielsen predicts that India's FMCG industry will develop
from $37 billion in 2013 to $49 billion in 2016. Appropriation development and
advancements around sachet offerings will assume real parts in fuelling development,
which had backed off in the most recent couple of years. While the ascent of e-trade is
by and large distinctly viewed, a few new models may develop throughout the
following couple of years.

1.1.3. Government Policies and Regulatory Framework:

The various policies Government of India's and its regulatory frameworks such as
reduction of license rules and sanction of more than 50 per cent foreign direct
investment in multi-brand retail and 100 per cent in single-brand retail sector are
several reason of growth in this sector. The government has also made some changes
the Sugarcane Control Order, 1966, and replaced the Statutory Minimum Price of
sugarcane with Fair and Remunerative Price and the State Advised Price (SAP).

Goods and Service Tax (GST): GST, which has filled the place of multiple indirect
taxes levied on FMCG sector with a uniform, simplified and single-pint taxation
system, is likely to be implemented soon (the benefits are likely to come in by the end
of FY’14). The rate of GST on services is likely to be 16% and on goods is proposed
to be 20%. A swift move to the proposed GST may reduce prices, bolstering
consumption for FMCG products. Some Government Policies and Regulatory
Framework are mentioned below:

14
1.1.3.1. Food Security Bill: The food security Bill has been approved recently
in 2013 in the Union Cabinet. According to the Bill, 5Kg of food grains per
person per month will be made available at reduced prices from State
Governments under the targeted public distribution system. With increased
demand, the agriculture sector would have a boost and this could lead to
more investments in recovering agriculture productivity and making it more
competitive.

1.1.3.2. FDI in retail: The choice of Government of India allow 51% FDI in
multi brand retail and 100% FDI in single brand retail responds well
towards the outlook of the FMCG sector in India. The decision has bolster
employment, and supply chains, apart from giving great visibility for
FMCG brands in retail markets, bolstering consumer spending, and
encouraged a lot of product launches. FDI of 100% under the automatic
direction is authorized in the food processing sector, which is taken as a
priority sector.

FMCG sector amounted to 1.9% of the nation’s total FDI inflows in April
2000- September 2012. FDI inflows into India from April 2000 to April
2013 in the food processing sector was `9,000.33 crore, accounting for
0.96% of overall FDI inflows where as that of soaps, cosmetics and
toiletries was `3,115.54 crore in, accounting for 0.32%. The food
processing sector had total FDI inflows of `6,198 crore during April 2009
to December 2012.

1.1.3.3. Relaxation of license rules: Industrial licenses are not necessary for
almost all food and agro-processing products, certain items which require
licence are beer, potable alcohol and wines, cane sugar, and hydrogenated
animal fats and oils as well as items reserved for exclusive manufacturing
in the small-scale sector.

15
1.1.4. New launches and product extension by FMCG companies to

boost growth and market share:

New product launches, innovation and product expansion are many of the few
factors which motivate a FMCG company for increasing their profitability to a
greater extent. As Indian customers prefer purchasing global brands and their
aspirations and desires are always focused on products of global companies,
their desire to consume products is also increasing.

Strong demand for already existing FMCG products is motivating more FMCG
companies to extend their brand umbrella and enlarge their product range as
well, strengthen the Indian FMCG space. Moreover to achieve higher market
share and maintain long-term growth, most of the FMCG companies are going
for brand extension strategy. Various gigantic industrial players have introduced
new and innovative products and ideas during FY’13. For instance,

1.1.4.1. HUL’s one of the largest brands, Lifebuoy aims to change hand
washing behavior of people by educating them about their health and
cleanliness. At the event of Mahakumbh Mela, Lifebuoy partnered with
over 100 restaurants to raise awareness about hand hygiene. Over 2.5
million Rotis (carried the stamp “Lifebuoy se haath dhoye kya? and
reminded people to wash their hands before eating.

1.1.4.2. HUL’s Kissan strengthened its ‘natural’ advantage by re- positioning

itself on “Goodness of 100% real”. The idea was to give consumers a “real”
experience – in the products they buy and through participation in activities
that help them connect to nature. This inspired the launch of ‘Kissanpur’.

1.1.4.3. Marico entered a new category by launching Saffola oats in various

flavors. It has also launched new products in the category of hair care and
skin care. The takeover of Paras Healthcare last year helped it extend into
the male personal care segment where it covered a good market and gained
profit.

16
 1.1.4.4. For Godrej, the major share of growth came in from new launch,
product innovation, and diversification across regions and development of
the distribution network. New products such as cream-based hair colour
and extension of Cinthol into new categories such as face wash and
moisturizers gave an added advantage to the overall business. HUL also
went in for product extensions in brands such as Lux, Pepsodent and Pureit.

1.1.4.5. In the year 2012 Dabur undertook a mega initiative to substantially

expand its distribution footprint and drive cost-effective growth. This
expansion was taken to increase the direct distribution coverage in rural
markets, customizing promotional activity and providing exclusive
servicing through a dedicated sales team in these markets.

The FMCG sector has flourish a lot in recent years, with market showing signs of broad
revival. The retail market in our country is very competitive in comparison to other
sectors. There are no legal restrictions on entry, and no discrimination against foreign
companies. Prices in retail sector differentiate considerably for a market operating on a
very less profit margin.

However, these differences in price are likely to originate from cost differences. Any
single retailer may not seem to create a leading place in the retail market. However, the
significant markets in the retail sector should be described locally rather than at national
level. These things are likely to have a positive impression on product diversity and the
quality of products/services offered by retail stores.

Conventional wholesalers are the in all probability washouts, in light of the fact that vast
retailers tend to purchase specifically from suppliers. The change of the retail market is
prone to have a durable effect on wholesale exchange and the dispersion of FMCGs also.
Logistics organizations that give an extensive variety of correlative administrations will
play an undeniably more imperative part in the circulation of FMCGs. Piece of the pie
developments show that organizations, for example, Marico Ltd and Nestle India Ltd,
with command in their key classifications, have enhanced their pieces of the pie and beat
companions in the FMCG area. This has been additionally helped by the absence of
rivalry in the individual classes. Single item pioneers, for example, Palmolive India Ltd
and Britannia Industries Ltd have likewise seen quality in their separate classes, helped by
17
developments and solid circulation. Solid players in the economy fragment like Godrej
Consumer Products Ltd in cleansers and Dabur in toothpastes have additionally posted
piece of the pie change, with restored development in semi-urban and rustic markets.
Indian purchasers were a touch progressive somewhat because of lesser extra cash and
incompletely because of less aggressive and more mixture of items.

FMCG industry in India began to shape during the last 50-odd years. The FMCG area is a
foundation of the Indian economy, touching each part of human life. India's Rs 460-
billion FMCG business sector remains profoundly divided with generally a large portion
of the business sector being commanded by unbranded, unpackaged, home-made items.
This presents a huge open door for advertisers of marked items to change over shoppers
to purchase marked items. FMCGs commonly require a wide circulation organize and are
sold straightforwardly to the buyers.

FMCG sector in the Indian rural market is one of the most booming sectors in Indian
economy. The villages of India account for 12.2% of the world's population. The farm
sector has been one of the significant sectors which boosted the rural economy resulting
in the elevated consumption of FMCG products. The consumers in both rural and urban
sectors can afford high-priced branded products nowadays with the high disposable
income.

1.2. Marketing strategies:

Marketing strategies serve as the elementary reinforcement of marketing plans formed to

fill market needs and reach overall objectives of the company. Plans and objectives are
generally tested for measurable results. Commonly, marketing strategies are formed for a
period of 12 months, with a deliberate plan detailing specific actions to be accomplished
in the same year. Time period included by the marketing plan vary by company, by
industry, and by nation, however, time spans are getting shorter as the speed of change in
the business environment increases. Marketing strategies are dynamic and
communicative. A most important objective of any marketing strategy for the various
product categories is to motivate consumers to repurchase the brand because of liking or
association with the brand. Purchase intention is the implied promise to one’s self to
purchase the product over again whenever one makes next trip to the store. It has a

18
substantial importance because the companies want to increase the percentage of a
specific product sold in the market for the purpose to increase their profit. The intention
of consumers to repurchase a specific product can be promoted by the marketer through
various marketing strategies used in stores such as attractive product display, cash
discount, floor advertisement, in store television etc.

All marketing strategies are formed on the basis of segmentation, targeting and
positioning. A company discovers different needs and groups in a selected market, targets
those needs and groups that it can satisfy in a superior way and then positions its product
so that the targeted audience identifies the company’s distinctive offering and image
(Kotler, 2003).

Figure 1.3: Marketing strategy

Market segmentation Market positioning

1. Identify customer needs 1. Identify differential

and segment the market. advantage for each
segment
2. Develop Profiles of
resulting segments 2. Formulate marketing
mix

Target marketing Marketing planning

1. Evaluate attractiveness 1. Develop marketing of

plan for each segment each segment

2. Select target segments 2. Develop marketing

organization

Source: Doyle (1998), Marketing management and Strategy”, 2nd edition, Prentice Hall,
Cornwall. pp. 65

19
Marketing has two distinct meanings according to Doyle (1998). The first and most
important is a philosophy for the whole business. It defines the primary goal of everyone
in the organization as meeting the needs of customers. The second meaning of marketing
is a distinct set of activities and tasks, which constitute marketing planning and decision-
making. These marketing decisions and plans centre on market segmentation, target
marketing, market positioning and market planning. Figure 1.3 describes the main steps
of marketing strategy.

1.2.1. Market Segmentation:

A market includes customers with related needs. But customers in a market are never
homogeneous. They differ in the benefits wanted. The amount they are willing or able
to pay for, the media they see and the quantities they buy. (Doyle. 1998). Very few
products or services can satisfy all customers in a market. Not all customers want or
are prepared to pay for the same things. To implement the marketing concept and
successfully satisfy customer needs, different product and service assistance must be
made to the varied customer groups that typically comprise a market.

The technique used to get a hold of the diverse nature of markets is called market
segmentation, defined as: “The identification of individuals or organizations with
similar characteristics that have considerable implications for the determination of
marketing strategy” said by (Jobber. 1998). A market segment is a customer group
within the market that has special characteristics for the determination of a marketing
strategy, Doyle (1998). According to Jobber (1998), the objective is to identify groups
of individual with related requirements so that they can be served effectively while
being of sufficient size for the products or services to be supplied efficiently. Usually
in consumer markets, it is not possible to create a marketing mix that satisfies every
individual’s requirements exactly. Market segmentation, by grouping together
customers with similar needs, provides a commercial viable method of serving these
customers.

20
1.2.1.1. Bases for segmentation:

Market division parcels a given business segment into distinctive sorts of sections
which engage a business to better concentrate on its things to the vital customers.
The diverse sorts of division variables, profilers, are expressive quantifiable
customer properties, for instance, industry, geographic region, nationality, age and
pay. At the point when all is said in done these variables are correlative to each
other. Kotler (2003) has exhibited a need-based administering procedure, where
customer are amassed into sections in light of related needs and points of interest
required by customer in fulfilling his particular use need. For each needs—based
segment, a determination of which demographics, lifestyles or use practices make
the section specific and identifiable is made.

1.2.1.2. Finding the need:

The issue with this need or favourable position division is that. To dismember
these pieces and confer to them, the promoter needs to know who these people
are: their profiles or customer properties. To find the needs of customers in a
given business area, it is required to endeavour promoting examination. This will
frequently consolidate easygoing gatherings and focus social occasions to
recognize what focal points customers search for and the level of differentiations
among them in their longings in the key step. The accompanying step will usually
be dealing with a formal survey to an extensive example of customers to quantify
these refinements in necessities.

The issue with this need or point of interest division is that. To analyze these
pieces and grant to them, the publicist needs to know who these people are: their
profiles or customer properties. To find the needs of customers in a given business
division, it is required to endeavour promoting examination. This will frequently
consolidate easygoing gatherings and focus get-togethers to recognize what
favourable circumstances customers search for and the level of differentiations
among them in their wishes in the key step. The accompanying step will usually
be dealing with a formal survey to a far reaching example of customers to quantify
these qualifications in necessities.

21
1.2.1.3. Consumer market segmentation:

The various segments based on Consumer market are given by Kotler (2003). The
four major segmentation variables for consumer markets are listed below:

• Geographic

- Region of the country

- Urban or rural area

• Demographic

- Ace, sex, family size

- lncome, occupation

- Religion, race, nationality

• Psychographic

- Social class

- Lifestyle type

- Personality type

• Behavioral

-Product usage: light, medium, heavy user

- Brand loyalty: none, medium, high

- Type of user: occasions

1.2.1.4. Organizational market segmentation:

The process of segmentation in industrial and other organizational markets is

analogous to that employed in consumer markets. First management have to
segment the market by benefits sought, then they have to describe the

22
 characteristics of these customers. (Doyle, 1998). The organizational market can
be segmented on several factors broadly classified into two major categories:
macro segmentation and micro segmentation, (Jobber. 1998).

 Macro segmentation

 Organizational size

 Type of industry

 Geographic location

 Micro segmentation

 Choice criteria

 Decision making unit structure

 Decision-making process

 Buy class

 Purchasing organization

 Organizational innovativeness

1.2.2. Target marketing:

Once the organization has identified its market-segment opportunities, it has to decide
how many and which ones to target. (Kotler, 2003). Target marketing puts end market
segmentation. This is the choice of selecting a specific segment to provide them the
product or service in which the company is dealing and is a key element in marketing
strategy. The organization needs to evaluate segments and decide which ones to serve.
(Jobber, 1998). Marketers segment the market in order to target one or more of these
segment with tailored, specialized offerings.

A marketing strategy is selecting and describing one or more target markets that a
company's product or service will identify for business opportunities. A target market

23
is a defined group most likely to buy a company's products or services. This group
usually has similar product needs, such as college students who usually have an
appetite for affordable cars, technology products, dorm room goods, etc. Once a target
market is identified by a company, a target market strategy needs to be created in
order to decide on how to promote, communicate and reach the group. There are three
ways that a firm can identify target markets.

1.2.2.1. Evaluating segments:

While evaluating different market segments the firm must look at two factors that
are the segments overall attractiveness and the company’s objectives and
resources. Various segments have characteristics that make it generally attractive,
such as size, growth, profitability, scale economies, and low risk. Investigating in
the segment make sense given the firm’s objectives, competences and resources.
Some attractive segments may not mesh with the company’s long rim objectives.
(Kotler, 2003).

1.2.2.2. Targeting strategies:

Targeting evaluates the attractiveness of the segments and chooses the target
market. Targeting is the process of selecting targets and matching the suitable
response to them on the source of operational needs, capabilities and limitations.
HUL targets different types of customers with different products requirements.
For motivated customers, it offers Lifebuoy and Breeze, it offers Hammam and
Lux variants for aspiring customers and for prosperous customers, it has Pears,
Dove and superior range of Lux. In case of detergents, it offers Wheel for striving
customers, Rin for wannabe customer and Surf Excel for affluent customers.

Having evaluated various segments the organization should consider different

target marketing strategies. (Kotler. 2003). Among several strategies, Doyle
(1998) and Jobber (1998) agrees about the following different strategies:

24
 Figure 1.4: Target Marketing Strategies

Undifferentiated
Marketing

Target
Focussed Marketing Customised
Marketing Strategies Marketing

Differentiated
Marketing

Undifferentiated marketing:

The company decides to develop a single marketing mix for the whole market.
This absence of segmentation is called undifferentiated marketing. (Jobber, 1998).
Here the firm ignores actual or potential differences among segments and targets
one offer to the entire market. (Doyle. 1998) Occasionally, a market will show no
strong differences in customer characteristics that have implication for marketing
strategy. Alternatively the cost in developing a separate marketing mix for
separate segments may offset the prospective gains of fulfilling customer needs
more exactly. Unfortunately this strategy can occur by default. For example,
companies who lack a marketing orientation may practice undifferentiated
marketing through lack of customer knowledge.

Marketing Mix Whole Market

25
Differentiated marketing:

When marketing segmentation reveals several potential targets, specific marketing

mixes can be developed to appeal to all or some of the segments. This is called
differentiated marketing (Jobber, 1998). As with undifferentiated marketers,
differentiators seek to compete across the majority of’ the market, hut here they do
so with different offers. They develop different products and marketing programs
for each segment of the market (Doyle, 1998).

Marketing Mix 1 Segment 1

Marketing Mix 2 Segment 2

Marketing Mix 3 Segment 3

Focused marketing:

The recognizable proof of a few portions in a business sector does not infer that an
organization ought to serve every one of them. At the point when an organization
adds to a solitary promoting blend went for one target market (specialty) it is
rehearsing centered showcasing (Jobber, 1998). The organization does not expect
to contend in most of the business sector yet rather has practical experience in one
portion, or a little number of fragments.

Segment 1
Segment 2 Marketing Mix
Segment 3

Customised Marketing:

A customised marketing is a sort of promotion technique whereby a publicist tries

to redo the message to the one of kind needs of a particular client or particular
subset of clients. Custom promoting is generally focused toward a high total assets

26
 specialty. In a few markets the necessities of individual clients are special and
their acquiring force adequate to make planning a different advertising blend for
each of the client needs.' (Jobber 2010).

Marketing Mix 1 Customer 1

Marketing Mix 2 Customer 1

Marketing Mix 3 Customer 1

A sort of promoting technique whereby a publicist tries to redo the message to the
one of kind needs of a particular client or particular subset of clients. Custom
promoting is generally focused toward a high total assets specialty. In a few
markets the necessities of individual clients are special and their acquiring force
adequate to make planning a different advertising blend for each of the client
needs.' (Jobber 2010).

1.2.3. Market positioning:

Once market segmentation and target market selection is done the next step in
developing an effective marketing strategy is to evidently position a product or
service offering in the market place (Jobber, 1998). It has been shown how a business
can offer superior value by strategies that can add value or reduce costs. The third way
to enhance its competitiveness is through positioning itself more effectively. Position
strategy is the choice of target market segments which determines where the business
competes and the choice of differential advantage which dictates how it competes
(Doyle, 1998), Jobber (1998) agrees when telling us that positioning is the choice of:

• Target market: where we want to compete

• Differential advantage: It includes how we wish to compete

Kotler (2003) defines positioning as, “The act of designing the company’s offering
and image to occupy a distinctive place in the mind of the target market.”

27
Marketing strategies helps in forming the very best marketing programs for the
business. Without strategies, the risk of becoming unfocused in the marketing efforts
is always there. To grow and increase customer base marketing strategies ought to be
integrated into the marketing plan (which in turn should be area of the business plan).
By integrating strategies to your overall company plans, company can better achieve
business objectives.

1.2.4. Types of Marketing Strategies:

Types of marketing strategies are categorized as the follows:

1.2.4.1. Image strategy: The idea in the consumer’s mind of a brand's total
personality, image is developed over time through advertising campaign
which has a constant theme, and is authenticated through the consumers'
direct experience. In addition to raising the perception of the proficiency of
a brand, this strategy also enhances the fame of the brand. For example, a
star or a famous athlete can be a suitable representer; a celebrity can let
customers notice the brand he or she uses. Dabour has created a brand
image and a enormous product following by associating mega-names like
super star Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, and Mandira
Bedi. Dabur has invested Rs. 150 crore just on the advertising of it product
Real Fruit Juice and Real Active. Till this date the company has been
successful in its mission as the people now are aware about the brand and
remember its products by name.

1.2.4.2. Promotion strategy: It is a mix of all the promotional activities

such as, an advertising campaign, increased PR activity, a campaign
offering free-sample, free gifts or trading stamps, arranging demonstrations
or exhibitions, setting up various road shows with attractive prizes, price
reductions on temporary basis, door-to-door calling, telemarketing, and
other methods such as sending personal letters to the company. Every brand
needs a detailed marketing communication or promotion.

28
 For example, a sports brand related activity, or a campaign or contest based
on a brand in which customers can participate in or watch. It can help
people to gain more information about a brand and the sale of the related
product. Promotion strategy is also an activity designed to boost the sales of
a product or service. Britannia gives gift items bowls, boxs etc with its
product Good day biscuits. Dabur foods usually provide customers with
some special offers during festival seasons like free trips, free gifts etc.

1.2.4.3. Media marketing strategy: It refers to the use of appropriate

media mix to achieve optimum results from an advertising campaign. Other
than just letting customers get the main idea of a brand, different ways of
exposure can be used to make people aware of the appearance of the brand
which may peak their curiosity. As for the people who already know the
brand, they may be provided with further opportunities to understand more
about the brand. This strategy also enhances the purchase intention of first-
time consumers, as well as repurchases ones, allowing customers to clearly
know the information of a brand and its related products. This can be done
by updating the brand’s latest news via advertisements, the internet, and
even mass media.

1.2.4.4. Multiple choices strategy: Multiple choices marketing strategy is

the practice of businesses interacting with their customers using various
communication channels, meeting customers on the platforms that they
prefer to use. It means to integrate with the spirit of a brand, aiming for the
personal tastes and the various needs of the consumers, and then to publish
a brand series to meet those needs.

1.2.4.5. Brand slogan: A branding slogan is a small combination of words

or a petite phrase that a business uses to make its company and products
stick in consumer’s memories. An effective branding slogan not only sticks
in a consumer’s mind, but also adjures a mood and forms a bond with the
consumer. Branding slogans are used in both advertising and promotional
materials used by a business. Having a slogan with the spirit of a brand in it
can stimulate the consumers, causing them to have different feelings, as if
29
 sensing the enthusiasm of a brand, and thus giving them confidence in the
product. For example, the very popular slogan “Daag Acche hain” which
Unilever used for its product surf. Cadbury Dairy Milk’s, “kuch meetha ho
jaye”.

1.2.4.6. Integrate the marketing channels: Integrated Marketing

Communication strategy refer to the combination of various marketing
tools such as advertising, marketing online, activities done to maintain
public relation, direct marketing, sales campaigns to promote various
brands so that alike message reaches a large number of customers.
Effective integration of various brand communication tools helps in
promotion of products and services efficiently. IMC coordinates all the
promotional activities by using the same quality of service and identical
environmental design, this strategy lets consumers experience the exact
same service wherever they are.

1.2.4.7. Store Promotion Techniques: Store promotions influence a

store’s operations and performance to great extent. The fewer Store
promotions are planned in any given year, the less accustomed the staffs is
to such events, which is a negative stressor that also has a large impact on
customer relations. In addition, often these special promotions have a short
span and the revenue generated from various strategies is very high. In
other words, the correct use of store promotion can help the retailer to
increase its sale which result in increased profit for the store also the
customers will be satisfied and happy while leave the store.

1.2.5. Marketing Strategy Process:

Marketing Strategy is a procedure of arranging, creating and actualizing moves

to get an aggressive edge in your picked specialty. This procedure is important to
plot and rearrange an immediate guide of the organization's destinations and how
to accomplish them. An organization needing to secure a sure share of the
business sector, ought to guarantee they plainly recognize their central goal,
study the business circumstance, characterize particular targets and create,

30
execute and assess an arrangement to ensure they can give their clients the items
they require, when they require them.

The focal target of any organization will be consumer loyalty so they may rule
the business sector and get to be pioneers in their industry and along these lines
giving considerable business fulfilment. So as to do that, three periods of
showcasing system must be culminated to make get a kick out of their clients
and beat out the opposition. Having a solid advertising methodology process set
up guarantees that you're showcasing exercises stay adjusted to your business
objectives, expanding the business come back from your promoting endeavours.

Figure 1.5: Marketing Strategy Process

1. Understand
Customer

7. Review & 2. Analyze

Revise Customer

Marketing
Strategy
6. Financial Process 3. Analyze
Analysis Competition

5. Define 4. Research
Marketing Mix Distribution

31
The above figure shows the process for developing and aligning marketing
strategy. These are the steps a company should follow to create and execute a
winning marketing strategy.

 Understand Your Customer:

Develop a clear picture of the target customer through market research and
analysis. Understand their pain points and the benefits of your solution.
Creating set parameters to study and analyse the customer needs and wants, it
is equally important to consider their demographics. These steps will help in
creating the right and more effective solution for our customer.

 Analyze the Market:

Some crucial market research should allow a company to find market data
such as total available market, market growth; new trends in market, etc.
proper and structured analyses plan will help in better positioning of our
marketing strategy. Various different market reach tools are available in this
technological world to study and analyse the exact data, a proper sample size
should be made for the study to be done on accurate basis. Geographical as
well as demographic study of the whole market should also be done along
with the future development scope and upcoming projects by the government
in that market area should also be explored.

 Analyze the Competition:

A marketer must ask himself what other choices your target customers have to
solve their pain point. Research and assess the strengths and weaknesses of
each. A better study on competition marketing strategy will give us an upper
edge in understanding and designing our strategy complete SWOT analysis
will be very beneficial in this step even considering scope of new entrants in
this existing pool of business. These studies also act as a differentiating factor
in designing your own strategy.

32
  Research Distribution Channels:

The choice to select the best way to deliver your product or service to the
targeted customers is one of the difficult task. This will impact your sales
strategy and your financials, as well as your marketing mix. Distribution
channel act as medium through which we can deliver our product or services
to end users, research can be done on finding out the best suitable and
effective medium of distribution among the various options available in
current market. Time is a crucial factor in finalizing the channel as products
reaching at the right time place an important role in overall planning strategy
for this complete lead time and inventory management planning need to be
done thoroughly.

 Define Marketing Mix:

Marketing involves a number of activities. In the first place, an association

may choose its objective gathering of clients to be served. When the objective
gathering is chosen, the item is to be put in the business sector by giving the
proper item, value, circulation and limited time endeavours. These are to be
joined or blended in a proper extent in order to accomplish the promoting
objective. Such blend of item, value, dissemination and limited time
endeavours is known as 'Showcasing Mix'.

As indicated by Philip Kotler "Showcasing Mix is the arrangement of

controllable variables that the firm can use to impact the purchaser's reaction".
The controllable variables in this setting allude to the 4 'P's [product, value,
place (dispersion) and promotion]. Every firm endeavours to develop such an
arrangement of 4'P's, which can make most elevated amount of buyer
fulfilment and in the meantime meet its authoritative targets.

Hence, this blend is gathered remembering the needs of target clients, and it
shifts starting with one association then onto the next relying on its accessible
assets and showcasing goals. Give us a chance to now have a brief thought
regarding the four segments of showcasing blend.

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Product : Product refers to the various goods and services offered by the
organisation to the customers. A pair of shoes, a packet of biscuit, a lipstick,
all are products. All these are bought on the grounds that they fulfill one or a
greater amount of our needs. We are paying not for the unmistakable item but
rather for the advantage it will give. Thus, in straightforward words, item can
be depicted as a heap of advantages which an advertiser offers to the buyer at
a cost. While purchasing a couple of shoes, we are really purchasing solace for
our feet, while purchasing a lipstick we are really paying for excellence in
light of the fact that lipstick is liable to make us look great. Item can likewise
take the type of an administration like an air travel, telecom, and so forth.
Accordingly, the term item alludes to products and administrations offered by
the association available to be purchased.

Figure 1.6: Components of Marketing Mix

Product Price
Variety List Price
Quality Discounts
Design Allowances
Features Payment Period
Brand Credit Terms
Name
Packaging
Services
Target
Customer

Intended
Positioning

Promotion Place
Advertising Channels
Personal Selling Coverage
Sales Promotion Assortments
Public Relation Locations
Inventory
Transportation
Logistics

34
Price: Price is the amount that is charged for a product or service offered by
the company. It is the second most important constituent in the marketing mix.
Fixing the price of the product is a tough job as it must be viable of the
company and should also be reasonable from the point of view of customers.
Many factors like demand for a product in the market, total cost involved,
consumer’s ability to pay the amount charged for the product, prices charged
by competitors for similar products in the market, government restrictions on
various products etc. have to be kept in mind while fixing the price. In fact,
pricing is a very essential decision area as it has its impact on demand for the
product and also on the profitability of the organization.

Place: Goods are produced to be sold to the final consumers. They must be
made available to the consumers at a place where they can conveniently
purchase the product offered. Woollens are manufactured on a large scale in
Ludhiana and you purchase them at a store from the nearby market at your
place anywhere in India. So, it is necessary that the product is available at
shops in your town. This process includes a chain of individuals and
institutions like distributors, wholesalers and retailers who comprise of firm’s
distribution network which is also known as channel of distribution. The
organisation must decide whether to sell directly to the retailer or through the
distributors/wholesaler etc. The organisation can even decide to sell it directly
to consumers.

Promotion: In the event that the item is fabricated remembering the customer
needs, is rightly estimated and made accessible at outlets helpful to them yet
the shopper is not made mindful about its value, highlights, accessibility and
so on, its advertising exertion may not be fruitful. Consequently advancement
is a critical element of advertising blend as it alludes to a procedure of
illuminating, convincing and affecting a customer to settle on decision of the
item to be purchased. Advancement is done through method for individual
offering, publicizing, reputation and deals advancement. It is done chiefly with
a perspective to give data to forthcoming purchasers about the accessibility,
attributes and employments of an item. It stimulates potential buyer's
enthusiasm for the item, contrast it and contenders' item and settle on his
35
 decision. The combination of print and electronic media has tremendously
helped the procedure of advancement.

 Analyze the Financials:

Combining together the marketing budget and evaluate estimated marketing

ROI, customer acquisition costs, etc. Marketing budgets helps us in complete
campaign planning and execution, how much need to be spent on which
channel can be determined from our financial planning. All the parameters
related to cost need to be studied and analysed properly to understand ROI
made and cost verses benefit analysis of all the expenditure made can make
the complete model more viable and cost effective. Cost per lead generated
and cost per customer acquired can also give a clear picture about the
marketing mix that we have selected, whether they are effective or we need to
make some changes in our strategy. Financial data analysis always gives us
the clear picture of the strategy selected, as to how efficient it is our scale of
performance.

 Review and Revise:

Continuously assess the effectiveness of companies marketing strategy, and

revise or extend as needed. Reviews act as a feedback mechanism system in
the complete process as it checks the progress and performance at each step.
Post analysis and study necessary changes and corrections can be implemented
in the strategy selected to make it more efficient and beneficial. This being the
final step in the process act as a crucial decision maker for valuable
improvements in current strategy.

Good marketing strategies can help the brand have a systematic plan and proper
development. It mainly lets people understand the brand, and it also satisfies the main
needs of the customers. Among those strategies, we may integrate marketing
placement through promotions of slogans, which can deliver the ideas, represents the
company and media, allowing consumers to have a more complete service.

36
Brand image plays an important role in enterprise marketing because it can help
increase the purchase intention of consumers. It has to collaborate with different kinds
of marketing strategies such as image representing, promotion strategy, media
marketing strategy, multiple choices strategy, brand slogan, and integrate marketing
channels.

Marketing strategy involves vigilant and accurate scanning of the internal and external
environments. Internal environmental factors include the elements of marketing mix
and marketing mix modelling, plus performance analysis and strategic constraints;
whereas external environmental factors include customer study, competitor analysis,
target market analysis, as well as evaluation of various technological factors,
economic factors, cultural or political/legal factors likely to impact success. An
important constituent of marketing strategy is to keep marketing in line with a
company's overarching mission statement.

After scanning the internal and external environmental, the marketing manager forms
a strategic plan which helps to identify business alternatives, establishes challenging
goals, conclude the optimal marketing mix to attain these goals, and detail
implementation. A last step in forming a marketing strategy is to make a plan to
monitor growth and a set of contingencies if problem occurs in the implementation of
the plan.

1.2.6. AIDAS model:

AIDAS is an acronym that depicts what happens when a purchaser connects with a
promotion. The term and methodology are credited to American promoting and deals
pioneer, E. St. Elmo Lewis. In advertising, getting the consideration of potential
clients or customers is basic to increasing enthusiasm for the item. When that hobby is
set up, a business must make potential clients or customers want the item enough to
make a move, for the most part by buying the item. There's a specific way buyers
respond to a promoting message.

Advertisers can pick up the consideration of potential consumers by free items,

extensive visual signs and other sensory techniques. Once the advertiser has the
potential consumer’s consideration, they must convert their interest through showing
37
them the product, informing them about the product information and promotions.
Organizations should then create final desire by concentrating on making a need for
their particular image, and at last, consumer activity through advancements, rebates
and getting out of elements or advantages.

The AIDAS model stands for Attention, Interest, Desire, Action and Satisfaction is
perhaps the simplest formula you'll ever find anywhere, yet also the most powerful.

1.2.6.1. Attention:

Gaining attention is a skill and just like any skill, attracting consumer’s attention
can be improved upon with time and practice. A common phrase applicable over
here is “First impression is last impression” i.e. the first encounter of consumer
with the product creates the product’s overall impression. The initial attempt of
the marketer must be to put the customer completely at ease. Informal
conversation is one of the best openers after which the seals person can achieve
customer attention by leading him onto the sale.

1.2.6.2. Interest:

Once the customer’s attention is grabbed, the next step is to bring customer’s
interest to the product or service. Some of the sales people are very good in the
starting but as the technicalities take over, they become uncomfortable while
explaining the product. Maintaining interest is a crucial part of the sales process
and hence is included in the AIDAS theory.

To make an interest Fanta composed an energized TVC which begins with the
scene of a room where a young lady is seen looking exhausted, sitting out of gear
her time. A kid enters with a bottel of "Fanta" in his grasp. As they take tastes
from the jug, the mind-set changes and they begin bouncing with satisfaction. The
camera zooms out of the window to another house where another young lady and
a kid are seen sharing Fanta and bouncing around. The camera then zooms out
further and skillet around demonstrating the whole city having some good times.
Everything is seen throbbing and hopping in a state of harmony as drops of Fanta
spill and bob around.

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1.2.6.3. Desire:

In this stage viewer's interest is converted into a strong desire for the product or
service. A television ad must create a strong drive and create a need for
purchasing the product even if need is not there. This can happen only if the
marketer has used the correct sense of appeal in the advertisement. For example
an advertisement of a Deodorant should be highlighted in such a manner that a
customer might think “Why didn’t I buy this Deodorant before”. Thus kindling
that desire becomes an essential element of the AIDAS selling theory.

1.2.6.4. Action:

When a brand promotes its image through an advertisement, advertisers should

ensure they are able to convince their customers to make a concluding decision or
be interested to know more about the product/brand. How so ever attractive and
customer focused an advertisement be, if there is no strong positioning in the
minds of the customer your brand will be lost among the various other product
available in market and all of the efforts are then required to tell your audience
how useful the product is for its target market.

An advertisement will be in a position to make a solid effect just in the event that
it can highlight the advantages its objective business sector will get with utilizing
the item at exactly that point activity towards a buy will occur as individuals will
dependably purchase your item when they see the advantages joined with utilizing
it. A decent case that obviously shows item utilization advantage is that of Moov
which is Backache Specialist and is Ideal for shoppers with tumultuous ways of
life and are inclined to repeating spinal pains. The particular Ayurvedic ‘Fast Pain
Relief Formula’ penetrates deep inside, produces warmth and helps you recover
fast.

1.2.6.5. Satisfaction:

Once the customer has placed the order, the customer has just parted with his
money. The customer expect good service, so even after the customer has bought

39
 the product, marketer need to assure the customer that he has made the correct
decision. The product is good for the customer.

1.2.7. Marketing communications:

Marketing communications gives the methods by which brands and associations

are introduced to their groups of onlookers. The objective is to invigorate a dialog
that will, preferably, prompt a progression of buys and finish engagement. This
cooperation speaks to and trade between every association and every client; as
indicated by the quality and fulfilment of the trade process, it will or won't be
rehashed. It takes after, consequently, that correspondence is a critical and
essential piece of the trade procedure, and it is the expertise and judgment of
administration that decide, much of the time, achievement or disappointment. It is
an action performed in group of people focused.

Marketing communications refer to the messages and various related mediums

used to communicate with a market. Marketing communications is included in the
promotion part of the "marketing mix" or the "four Ps" which are price, place,
promotion, and product. It s also referred as the strategy used by a company or
individual to reach the target market set for a particular product using various
types of communication.

Key objective of marketing communication is to inform your target audience

about your brand and to persuade them to use your product or service. Through
marketing communication the marketer reminds the target audience about your
product or services using various marketing channels.

Picton et al (2001) defines marketing communications as “all the promotional

tools of the marketing mix which include the communications between an
organization and its target audiences on all matters that affect marketing
performance. The concept target audience is defined by describing it as “Those
individuals or various formed groups that are similar and have a direct or indirect
effect on business performance, and are selected to receive marketing
communications. Wells et al (2000) agree about it being an element in the
marketing mix, the final element to be exact, and define it as “persuasive

40
communication planned to send marketing linked messages to a selective audience
targeted by the company.” According to Doyle (1998) there are numerous reasons
why managers want to communicate to markets and audiences which are:

• Inform

• Persuade

• Image creation

• Reinforcement

Marketing communications process usually includes direct selling, media

advertising, direct response marketing, sales promotion and public relations
(Doyle. 1998). The range of activities’ tools available to an organization to
communicate with its target audience is called the marketing communications mix
(Picton et al. 2000). According to Kotler (2003) the marketing communications
mix consists of five major forms of communication which are as follows:

1) Advertising: Any paid form of non-personal presentation and promotion of

ideas, goods or services by an identified sponsor.

2) Sales promotion: A variety of short-term incentives to encourage trial or

purchase of a product or service.

3) Public relations and publicity: A variety of programs designed to promote

or protect a company’s image or its individual products.

4) Personal selling: Face-to-face interaction with one or more prospective

purchasers for the purpose of making presentations, answering questions and
procuring orders.

5) Direct and interactive marketing: Use of mail, telephone, fax, e-mails or

Internet to communicate directly with or ask for response or dialogue from
particular customers and prospects.

41
1.2.7.1. Marketing communications process:

Fundamental to the understanding of marketing communications is an

comprehension of the promoting interchanges process.

The model underscores the key elements in compelling correspondence.

Senders must recognize what groups of onlookers they need to reach and what
reaction they need to get. They must encode their messages so that the
intended interest group can interpret them. They must transmit the message
through media that can reach the target audience and develop feedback
channels to monitor the responses.

A major part of the audience analysis is assessing the current image of the
company, its products and competitors. Image is the collection of beliefs, ideas
and impressions a person holds regarding an object. The first step is to
measure the target audience’s knowledge about the object. Respondents who
are familiar with the product can then be asked how they feel toward it, using
the favorability scale (Kotler, 2003).

In marketing communications the identification of the sender is crucial to the

effectiveness of the communication. If the sender is identified as credible then
the messages will be believed. The credibility of the sender will depend on:
their perceived expertise, how fare they can he trusted, and weather or not they
are liked by the target audience.

The communication process begins with the sender of the source. The sender
has an intended message to communicate. The characteristics of the sender
influence the communication process. The sender’s attitude, creditability and
other attributes influences the way he perceives and interprets the object or
events to be communicated. His personality also influences the manner in
which the message is transmitted. A sensitive person, for instance, will look at
the communication process from the receiver's perspective, an insensitive
person primarily concerned with his own needs.

The sender encodes the information to be transmitted by translating into a

series of symbol or gestures. Encoding is necessary because information can
42
only be send from one individual to another through representations or
symbols. Encoding can be fairly simple, such as seeing a picture of what one
wants and then ordering a sandwich and milkshake. It can also be extremely
difficult, such as finding the right word to explain why in employees
performance leaves much to be desired.

The message is the physical form into which the sender encodes the
information when we speak, the speech is the message to be send. When we
write, the written material is the message. When we gesture, the movement of
our arms, the expressions on our face are the messages.

The channel is the source or medium through which the message travels. The
primary channel for inter-personal communication includes a face-to-face
communication between two individual. Some of the major mass media
channels include radio, television newspapers and magazines.

Written messages are typically written on paper, but virtually anything can be
used to convey written messages including snow, slate, twigs and golden
plates, In the future video display terminals will probably provide one of the
major channels for written messages.

The channel choice depends on the purpose of communication. Face-to-face

communication for example is used when the communicator wants to discuss
informal, private and confidential matters. Written media are used to deal with
business matters that require formalities and a written record. A group
conference may be used to exchange ideas or to acquire at group decisions

A receiver is a person who receives the message and has the responsibility of
decoding it. Decoding is the process by which the symbols message. It is a
check on how successfully the sender has re interpreted by the receiver.
Although some complex messages require an actual translator, in most cases
decoding is simply the interpretation of the message by the receiver.

A feedback is the reply of the receiver to the message send by the source
person. A feedback is enviable because the sender can find out that the

43
receiver has correctly interpreted the message or not. It is a check on how
successfully the sender has been transmitting messages as originally proposed.

In both stages of the process transmitting the message and then receiving
feedback, the message may be disrupted by noise, which includes many things
such as use of ambiguous wording for a message, a poor telephone connection
or a poor television connection. Any factor that distorts or interferes with the
receiver’s ability to receive the message is called noise.

The diagram below explains us how a proper communication process works.

Communication always starts with a source that carries vital information or
data that travels through different channels.

Source is always the sender of the message – who is sending the message to
the target group .Post this encoding of information or data happens which
differentiates whether the message was a sales talk or advertisement or a sales
promotion. Encoding stage determines what exactly message was intend to
say.

Next is channel stage this determines which media we are considering to

propagate our message in what way wither it is through newspaper, magazine,
radio, T.V., direct mail, phone messages as a medium or directly through
ground salesman staff.

Decoding of the message is done by the end users or consumers, majorly our
target audience to whom we wanted to communicate. As consumers receive
the message from any other of chosen channel mediums they give a meaning
and interpretation to the message. Results are seen in the actions of the
consumers through change in their attitude or behaviour post being encounter
to our message.

This complete marketing communication model have some factors like noise
which distorts the whole process thus effecting our communication the reason
for distortion can be competitive advertisements, other salesman office
confusion ,home confusion or other effective factors.

44
 Figure 1.7: Marketing Communication model

Noise distorts the message

Competitive advertisements, other salesmen office

confusions, home confusion, other factors

1 Source 2Encoding 3 Channel 4Decoding 5 Result

Marketing Message Message Consumer Action on

manageme may be channel as a message

Receivers response and reaction

nt with sales talk, may be receiver change in
Receivers response and reaction

ideas to advertisem newspaper, gives attitude, or

communic- ent, sales magazine, meaning behaviour
vv
ate promotion radio, T.V., and of
devices to salesman, interpretati consumer
convey direct mail on to the
intended and so on message
meanings

Sender of
message Message
(who)? (says what?) Media
(In what way?)
Audience
(to whom?)

Feedback control Feedback control

Consumer information channel, marketing research,

audience, surveys, dealers, customers, salesmen etc.

Source: Marketing management concepts and cases by S.A. Sherlekar and R.

Krishnamoorthy, Page no- 36

There can also be a feedback control system attached to this model which can
be derived through consumer information channel, marketing research,
audience, surveys, dealer’s, customers, salesman etc. This feedback control
system very effective and necessary step as it helps in ongoing improvement
and corrections in the complete marketing communication model process.
45
1.3. Brand image:

Brands are the most important asset for any business organisation. A brand is a
recognizing name and/or image, (for example, logo, trademark, or bundle outline)
planned to distinguish the merchandise or administrations of either one dealer or a
gathering of vendors, and to separate those products or administrations from those of
contenders. A brand in this way flags to the client the wellspring of the item, and ensures
both the client and the maker from contenders who might endeavour to give items that
seem, by all accounts, to be indistinguishable.

The values which make up a brand exist because they are perceived. They are
additionally assessed decidedly or contrarily by clients and potential clients. These
assessments meet up to shape the brand's picture. The principal thing to acknowledge
about picture is that it is recognition and need not as a matter of course be certainty.
Purchasers can't know in a genuine sense everything to think around an organization.
What they don't know they may accept or expect with no goal proof; in basic terms they
will hold a feeling. Be that as it may, these discernments are to the purchaser, pretty much
as genuine as those in view of harder proof and in all likelihood will impact the obtaining
choice.

Given that most products and services on the market have great competition with similar
products and services made by other brands, there are only a small amount of things that
typically differentiate the two brand’s products. These incorporate the cost of the item,
the nature of the item, and any extraordinary qualities of the item. On the other hand,
when these qualities are excessively comparable, making it impossible to separate, it is
the brand itself that figures out which item or administration will be picked. As Amazon
CEO Jim Bezos once said, “A brand is what individual say about you when you leave the
room”.

The brands need to have certain qualities such as credibility and trust. If the brand is not
trusted by the consumers, another brand will confine that market instantly. Consumers are
gradually experiencing more what they perceive as an improved image from the
consumption and ownership of branded products. It is demonstrate that brand loyalty has
significantly more importance behind it than a great many people think. With the

46
incessant changes in buyer values over the world, it has gotten to be basic that brands
adjust their states of mind with every individual society. Purchasers have now turned out
to be more individualized, and keeping in mind the end goal to succeed, brands must
understand that.

As indicated by the American Marketing Association, the meaning of brand is to

recognize its image, name, plan, sentence or message, in a blend which makes the brand.
At the end of the day, brand is similar to the spirit of the item, and what makes a
difference the most is having its uniqueness. Kotler additionally demonstrated that
"brand" originated from the Scandinavia word "brandr," which refers to making a "hot-
stamp" in clients' psyches so they can perceive the organization and the dealer of the item,
and afterward have their inclination.

The marking of quick moving purchaser merchandise has turned into a basic piece of the
lives of customers. Purchasers are truly stood up to with several brands once a day and
are, in this way, spoilt for decision. From a business' point of view, brands are sole
element for advertising and business methodology. Setting up a brand that has earned the
appreciation and esteem of buyers is of essential significance in endeavouring to assemble
piece of the overall industry and boost the abundance of their shareholders by expanding
turnover through imaginative showcasing effort.

The part and effect of marking and its necessary parts of bundling, evaluating,
advancement and quality will be grilled to set up how these variables contribute towards
this joining of recognitions which decides the brand value of quick moving buyer
merchandise. Obviously, the turnover created from the offers of quick moving customer
products frames a huge part of all deals produced by retail chain stores.

A brand is essentially a sellers promise to deliver a specific set of features, benefits and
services consistently to the customers. A good brand conveys a warranty of quality and
assurance. But a brand is an even more complex symbol. A brand can convey up to six
levels of meaning.

Attributes: a brand brings to mind certain attributes. For instance the brand named Dettol
has an image of safety.

47
Benefits: attributes must be translated into functional and emotional benefit. The attribute
“durable” could translate into the functional benefit.

Values: the brand also says something about the producer’s value. For example values
such as high performance, safety and prestige.

Culture: the brand may represent a certain culture. German culture, organised, efficient

Personality: the brand can project a certain personality.

User: the brand suggest the kind of consumer who buys or uses the product

Brand image has been studied extensively since the 20th century due to its importance in
building brand equity. In the inexorably aggressive world commercial center,
organizations need a more profound knowledge into purchaser conduct and instruct
shoppers about the brand with a specific end goal to create viable promoting techniques.

The positive image of a brand can build the buy expectation among costumers, and
afterward surpass the acknowledgment and steadfastness toward the brand. Henceforth,
the brand image can speak to the majority of the data thought about the item. Despite the
fact that the brand image is the purchasers' close to home recognitions, not the brand
itself, a high-review brand can indeed promote loyalty, making itself stand out from the
competition in a competitive market and create their own kingdom. All in all, the
connection between brand and brand image is complementary. A company’s good or
positive image not only shows the characteristic of a brand, catching people’s attention,
but also promotes the positive merits and values of a brand, as well as the loyalty of
consumers.

Moreover, it can improve any negative images. In other words, brand image has a lot of
influence on consumers, and effective marketing strategy is helpful in promoting the
brand and its image. Brands can determine consumer’s behaviour because they show the
reliable qualities, images and prices of the product.

Brand image makes esteem in an assortment of ways, offering customers to process data,
some assistance with differentiating the brand, creating motivations to purchase, giving
positive emotions, and giving a premise to expansions. It can help clients to know more

48
around a brand by making an open minded mindfulness, by demonstrating its uniqueness
and by utilizing successful representation. This empowers the brand to pick up a positive
impression, which thus reinforces the shopper's buy goals.

1.3.1. Benefits of Strong Brand Image:

High levels of brand awareness and a positive image increase the probability of a
product being chosen and decrease the vulnerability to competitive forces. Here are
nine specific benefits which a company will obtain from a strong brand image.

Large amounts of brand mindfulness and a positive image expand the likelihood of an
item being picked and diminish the powerlessness to aggressive strengths. Here are
nine particular advantages which an organization will acquire from a solid brand
picture.

 Premium costs can be acquired. A brand with a positive image will charge
bigger edges and be less powerless to aggressive powers. There will be less
pressure to offer at low costs or offer rebates.

 The item will be requested by the customers. Brands which customers believe
is good and trustworthy are requested particularly by the customers.
Individuals will seek out a brand they truly need.

 Competitive brands will be dismisses. A well-known brand will go about as an

obstruction to individuals changing to contenders items. A brand is a guard
which is for all time and protect a company from defamation.

 Communications will be all the more promptly acknowledged. Constructive

emotions around an item will bring about individuals having the capacity to
acknowledge new claims on its execution and they will warm them up with the
goal that they can be all the more effectively convinced to purchase more.

 The brand can be built by the company. A brand which is surely understood
and all around respected turns into a stage for including new products as a few
parts of the positive symbolism will help in the selling and brand building of
new items.

49
  Customer fulfilment will be moved forward. A positive image will give clients
utmost fulfilment when they utilize the item. They will feel surer about
purchasing it.

 The item will be pulled through the dissemination system. A brand which
individuals request can all the more effectively be sold into wholesalers and
merchants who are to a great degree receptive to what their clients need.

 Licensing opportunities can be opened up. A solid brand might bolster joint
endeavour bargains or permit the brand to be authorized for use in new
applications or in different nations.

 The organization will be worth more when it is sold. An organization with a

good brand name will get a higher premium for the goodwill it hold in the
market.

The companies not only enjoy the substantial benefits of building a strong brand in
the market they also face serious and heavy penalties if a strong brand is not created
in the mind of customers. The other way to reduce the loss is to compensate by cutting
prices of the products, discounts and cost-reduction various marketing programmes.

Brand image would stem from three sources which are mentioned below:

1.3.2. Provider driven image:

This is the image driven from the company/brand. A brand is what it is because of the
company that makes it. For instance, a brand name like Tata signals quality in
everything it from steal to salt. In fact it is likely that a couple of percentage points of
the market share acquired by any tata brand is owned to the brand tata itself.
Sometimes the promoter’s/CEO’s positive image enhances a brand appeal. JRD tata’s
image had a favourable impact on the group’s name. The same thing could be true of
brand names. Amul is synonymous with dairy products. The name dettol is the other
name for anything aseptic be it antiseptic liquid or toilet soap. This image of dettol
can be used to get into a new product category that has the same image. For instance,
it is possible to extend it to surgical sutures.

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 Many times brand image is influenced by the producers name besides the brands own
personality. Research in US showed that Crest ( a P&G toothpaste) was seen as a anti
cavity toothpaste while Hindustan lever’s brand Closeup, Aim Mint, Aim Regular
were all clustered together and viewed as cosmetics rather than medicinal toothpastes.

1.3.3. Product driven image:

This image is a result of the products performance. This in turns depends on its
ingredients. If a company has product driven brand of a particular category, than the
company needs to focus on driving innovation on both product and claims as a way to
maintain a upper hand over your competition. They must keep R&D closely
associated to their brand’s Big Idea and also have to invest to maintain the pipeline.
The marketing manager should take more of a logical approach. Currently Nestlé
India which is a subsidiary of Nestle S.A. is world’s biggest food company and a
leading Swiss giant. Company has an extensive charisma across India with its
collection of strong brands Nescafe, Maggi, Milkybar, Milo, KitKat, Barone, Polo,
Munch, Nestea, Nestle Milk, Nestle Fresh, Milkmaid, Natural Dahi and Nestle Jeera
Raita. The company is focused on increasing its market share using reformation and
improvement of its existing brands in India.

1.3.4. User driven image:

This image is driven by lifestyle of the user. A particular lifestyle is sought to be

projected through a product. This is done through user-imagery. Naughty boy shoe
has more to do with a school boy’s image rather than the product characteristic. “Men
can be soft” is the idea of that Nivea cream innovatively communicates through its
positioning “Men who dare to care”. Here Nivea focuses more than on the product
features themselves.

Brand picture of most settled items is hard to change. A positive image is one which will
continue to work for a company, even when the market situation starts to go wrong. An
organization with a splendid notoriety can endure an intermittent slippage in some zone
and the client will be insensible about that. In comparison, a company with a poor image
will be castigated for any default and there will be no exoneration. Cadbury were slow to
admit to and recollect products that were contaminated with salmonella that
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unquestionably cost the companies deeply in lost sales. Brand Image is something which
can be taken in the round. This overall image is the pool of the all the perception and
judgment which people hold on a company.

1.4. Store promotion:

Retailing involves sale of goods and services to the end user for personal use. Retailing
encompasses business activities concerned with selling goods and services to consumers
for their personal, family or household use. It includes every sale to the ultimate
consumer that can range from cars to apparel to meals. It is the last stage in the
distribution process.

According to Philip Kotler, (2010) retailing includes all the activities involved in selling
goods or services directly to the ultimate consumer for personal or non-business use.
Indian retail industry is the fastest growing industry of the economy. The retailers have
tapped the opportunity in growing Indian market. The results can be seen with the
emergence of huge super markets and shopping malls like Big Bazaar, Central,
Pantaloons, Shopper’s Stop, Nilgiris, Pyramid and Reliance, More and many more. Store
promotion is a marketing strategy that is meant to bring people into the store and to buy
definite items that are part of the store promotion.

These strategies most often come straight from producers or the product manufacturing
company where as sometimes when it is not provided by the producers it may be
presented by the store itself. The idea is to generate additional revenue due to the
additional sales of the products concerned, or even to induce a brand switch when offered
by the manufacturer. These strategies help to drive traffic into the store, to eliminate too
much stock, or to create additional revenues when sales are slumping. It also helps in
building the brand image and creates customers intention to buy a specific product or
brand.

Gibson G. Vedamani in his book on Retail management states that, Visual merchandising
is needed and its relevance is felt in today retail industry as the primary purpose of
merchandising is presentation of products in a way that cause them to be sold quickly,
and at the highest possible retail margin. Secondly the visual seduction that charms the
customer results in add-on-sales. The third role of merchandising is the creation of the
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merchant’s individual retail image which relate unswervingly to the standard of living of
the community and the customer. The targeted result of the activity of visual
merchandising is ongoing sales and customer loyalty. Gibson also states that, visual
merchandisers face three challenges while designing the store.

 First challenge is to keep the store atmosphere consistent with the store image.

 The second challenge is to influence customer buying decisions with the help of
store layout, store atmosphere and space–planning.

 The third challenge is to consider the costs associated with each store design
element versus the value arriving in terms of superior sales and profits. For
instance, the free-form design found in many boutiques is very costly than rows of
gondolas in a retail store most often discount store (Gondolas are four sided
shelving cum display cum selling unit, often movable, used on the retail floor as
part of the merchandise fixtures). Also custom wood fixtures are more expensive
than wire racks. Visual merchandiser must be aware of the financial ramifications
of any store layout decision.

This strategy of store promotion is widely used by the manufacturers of FMCG

products as these are the products which are consumed by the customers frequently
and regularly. Also in case of Fast Moving Consumer Goods, large numbers of
variants are available which provide the marketer the scope to use such promotional
strategies which can convince the customer to purchase their products.

Differentiation in the retail store has never been more important than it is today. It is
of incredible enthusiasm to comprehend in subtle element, what makes a client buy a
specific (item buy choice) in retail locations. There are different components which
impact a client's choice other than the typical 4Ps (Product, Price, Place, and
Promotion) e.g., brand request, store mood, show and so forth especially when the
buy is spontaneous. Throughout recent decades, organizations have been burning
through a large number of dollars on ad furthermore attempting to comprehend the
elements which drive client to buy an item. Among the 4Ps, the latest trend has been
in-store promotion.

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Retail industry has been blasting each year in the previous decade and has entered the
underdeveloped nations bigly. India's retail market is to touch $820 billion by 2020 as
indicated by A C Nielson review (2008). However the potential is huge and it is
additionally a sponsor for national economy. The profile of the retail segment is
transforming from the corner mother and pop stores to sort out area. This change is
certain to have an effect on the purchasing conduct of the buyers. The development in
retails segment is certain to deliver a few open doors for the producers and retail chain
proprietors. "Producers need data on the viability of in-store boosts and the degree to
which they impact shopper buying conduct for their brands.

Retailers likewise require this data to decide the adequacy of these assets intended to
invigorate extra deals and maybe separating themselves from the contenders" (Abratt
and Goodey, 2010)

Store advancements extraordinarily impact a store's operations and execution. The

less Store advancements are arranged in any given year, the less usual the staffs is to
such occasions, which is a negative stressor that additionally affects client relations.
Everybody is on edge about the accomplishment of the advancement. Moreover,
regularly these unique advancements are unbudgeted which adds extra weight for staff
to convey the craved deals results. At the end of the day, the weight for more deals is
on, and accordingly, less time can be gone through with individual clients.

Then again, store advancements are an awesome opportunity to transform a somewhat

drilling store into an enthralling occasion store, which will amaze clients and make
interest in fascinating and imaginative new items. Store advancements are
professionally executed promoting and marking occasions, which is the reason they
ought to be sans push, extraordinary encounters for staff members and purchasers
alike.

Customers have more shopping choices than any time in recent memory from mass
merchandisers offering one-stop rebate shopping to huge and regarded retail
establishments, and the accommodation of the 24*7 worldwide online commercial
centre. The expansion in shopping decisions results in an expansion in client requests
and desires, conceivably dissolving client steadfastness rather, buyers are
characterizing their own shopping way on a day to day basis, based on individual
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experience, product availability, customer service, convenience, value and price.
Various store promotional tool which create brand image for Fast moving consumer
goods are discussed below:

1.4.1. Attractive product display:

As critical is enhancing the store to pull in the client, more vital is to improve the
item, which is conceivable through deep hues and eye-appealing bundling. The store
designing and packaging goes as an inseparable unit. In retail location plan, as in
bundle outline, shading is utilized to pull in or draw the client and client's
consideration. Making an appealing item show can attract the client, advance a
moderate moving thing, report a deal, or welcome a season. On the off chance that
your store front is sufficiently blessed to highlight one or more windows, then you
have a standout amongst the most de monstrated (and slightest costly) types of
promoting available to you.

Successful item show assumes an indispensable part in the profoundly focused retail
store, where a plenitude of items get out for the shopper's consideration.

Numerous customers don't decide until remaining before the store shelf. In this very
crucial moment, the attractive product display is the producer's most vital marketing
tool. Design and construction of the display must convince the consumer that this is
the best buy.

The purpose of a display is to present and sell merchandise by conveying a message

about the product. It only takes seconds for the display to leave an impression on the
customer's mind. All forms of merchandise presentation are considered to be displays.
An effective display should get the customer to stop, look and act. This is done by
combining merchandise and promotional activity with creativity, lighting, color, signs
and movement (line and design).

The influence of the attractive packaging of a product has on the impulsive purchasing
behaviour of the consumer. Motivation buy choice' can be termed as impromptu
purchasing and is a urgent part of purchasing conduct, particularly when discussing
FMCG division. Advertiser put a mess of push to get a handle on the purchaser's

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consideration and win them bringing about a deal though the purchaser never
expected to purchase that specific item or administration.

The bundling can draw in a shopper to the item however a definite conclusion to buy
the item lays on the cost of the item much of the time. As indicated by Underwood
(2003), the unmarked bundles, (bundles that are not checked with value), the sort of
shading utilized, the state of the bundling, the representation utilized offer the clients
some assistance with determining if the item is of low quality and these items come at
a lower cost. On the off chance that the bundling is alluring and the item is checked
with the value, and then there is discernment among the shoppers that the item is of a
higher quality.

1.4.2. Special discount:

Discounts, reliability offer and mass buying price is regular business practice and can
help you to move stock, draw new customers, or attain sales targets during a slow
sales period. Offers to consumers of saving off the regular price of a particular
product, mentioned on the label or package. A condensed price-pack is a single
package sold at a reduced price. A banded pack is a bundle of two related products
banded together. Provide a price reduction after purchase rather than at the retail shop:
Consumer sends a specific proof of purchase to the manufacturer who refunds part of
the purchase by mail.

The store image is calculated on the foundation of the type of discounts in the store
(Grewal, Kent, Monroe & Krishnan, 1998). Consumers who purchase the products
have a perception of low overall prices of the retail stores that provides discounts over
a large number of items. Along these lines recurrence of value point of preference is
more grounded over the extent of value favourable position (Schiffman and Kanuk,
2008). Now and again rebates might induce a few clients who are faithful to some
other brand to change their inclination. Furthermore it may impact a few buyers, who
might have generally discovered the item classification excessively costly, making it
impossible to make a buy in the item class. Bigger rebates are liable to prompt an
increment in variability in class deals.

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Along with increased order numbers and more money, discounting benefits including
the below mentioned:

 Attracting new customers without having big marketing campaign. You can
also take the opportunity to add on new customers to the list of participants of
newsletter.

 Encouraging ambivalent customers to purchase goods, especially if the

discount has a restricted time offer.

 Clearance of products of last season stored in the stock, or out-dated models.

 Free advertising on sales websites

 New sales from inactive customers.

Offer a percentage discount or 'get one free' when customers buy a set number of
items. This expands the size and estimation of client requests and moves stock which
may required for leeway things. It is additionally a smart thought when your supplier
offers rebates for bigger request volumes and you can buy stock at a decreased cost.

1.4.3. Gifts:

Gifts refer to the products offers at a moderately minimal effort or free as a

motivating force to buy a specific item. A with-pack premium goes with the item
inside or on the bundle. A free in-the-shopping centre premium is sent to customers
who send in a proof of procurement, for example, a case top or UPC code. A self-
liquidating premium is sold below its normal retail price to consumers who request it.

This promotion is popular across a range of product categories. It offers the consumer
a motive to procure a product because it has a gift attached to it in the form of a free
product/service. For example, in case of a car purchase, the consumer is provided a
free item such as a stereo system or car accessories. The customer may likewise be
offered a free administration, for example, broadened 3-year guarantee or free
protection. Frequently the item offered free is a supplement to the first buy. This is
delineated by occasions of the accompanying sorts of free blessing offers:

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  free pillows with a mattress purchase

 free pack to two toothbrush with 140 gm toothpaste pack

 free bucket with a packet of surf

At different times the free item may be a related item or item utilized as a part of a
comparable setting e.g. cooking or cleaning or individual care or eating. For kitchen
items, the free item are things utilized as a part of the kitchen, for example, plastic
compartments, metal spoon, tawa, non stick container, idli stand, serving dish, place
setting and OTG. In the event of cleanser powder/cake the free items are connected
cleaning items, for example, blanch, washing cleanser, washing powder, can, shower
cleanser, floor cleaner and utensil more clean. In the healthy skin portion, the free
items are other individual consideration things, for example, cleanser, body salve,
cleanser sachet, shaving cream and toothpaste. In the event of sustenance items, the
free item contains other consumable things, for example, scones, espresso, namkeen,
salt, chocolate.

1.4.4. Prizes (contests, sweepstakes, games):

Prizes are offers of the odds to win money, trips, or stock as an after effect of
obtaining something. A challenge calls for purchasers to present a passage to be
analyzed by a board of judges who select the best sections. A sweepstakes requests
that shoppers present their names in a drawing. A diversion presents customers with
something each time they purchase—bingo numbers, missing letters—which may
offer them some assistance with winning a prize.

The words "advancement," "sweepstakes," "challenges" and "giveaways" are here and
there utilized reciprocally. Be that as it may, there are a couple extremely
unmistakable contrasts between them. "Promotion" can be utilized to depict a wide
range of showcasing strategies including Sweepstakes, Contests, Instant Win Games,
Continuity and Loyalty Programs. Two of the most widely recognized advancements
are Sweepstakes (recreations of chance) and Contests (diversions of expertise). The
real distinction between these two strategies is that challenge victors are chosen by

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judges utilizing an arrangement of criteria though sweepstakes champs are arbitrarily
chosen.

"Promotion" can be utilized to portray a wide range of advertising strategies including

Sweepstakes, Contests, Instant Win Games, Continuity and Loyalty Programs. Two of
the most well-known advancements are Sweepstakes (diversions of chance) and
Contests (recreations of expertise). The real distinction between these two strategies is
that challenge victors are chosen by judges utilizing an arrangement of criteria though
sweepstakes champs are arbitrarily chosen.

Challenges are utilized to draw in a customer or fan with your item or administration.
A basic challenge will promote a suggestion to take action that solicits shoppers to
make a piece from substance for an opportunity to be chosen as a champ. The client
created substance may be a photograph, exposition, video, sonnet, or a response to an
inquiry. The section they make ought to then be scored and judged against an
arrangement of criteria that is delineated in your Official Rules. This guarantees the
judging procedure will be reasonable for all sections. The substance they make can be
priceless to your image. Not just would you be able to pick up bits of knowledge and
statistical surveying direct on your image followers yet the substance can be utilized
later as a part of other advertising endeavours if the best possible discharges are
gathered. In particular a challenge is about associating and constructing more
profound associations with the purchasers

Sweepstakes are basically used to create mindfulness or to develop your customer

database. They are easy to execute and ought to be truly simple for the customer to
enter. A normal online sweepstakes will request that a buyer enter some individual
data (name, address, email) for an opportunity to win a prize. With any lawfully
consistent sweepstakes there will likewise be places for the shopper to affirm that they
are inside of the qualified age range and that they have perused and consent to the
advancement's Official Rules. Numerous keen advertisers additionally incorporate a
pick in for agree to email these purchasers with organization news.

On the off chance that the Sweepstakes is made and oversaw legitimately your result
could be triple: the purchaser is energized at the considered possibly winning an

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incredible prize and imparts the chance to kindred companions, they may urged to
visit your online or retail shop to proceed with the involvement with a buy

The sweepstake offer allows the purchaser to win an extensive prize through good
fortune. It usually includes a fortunate draw or a scratch card in view of which the
victors are chosen. The prizes offered on this advancement can be comprehensively
grouped into two sorts. The main sort of prize is a trek to a remote area e.g. Paris,
London, Thailand, Singapore or Malaysia. Numerous brands offer a trek toward the
South Africa World Cup as a limited time fascination.

The second sort of prize are tough items, for example, Bike, Car, Watch, Washing
Machine, Television, Refrigerator, DVD, Mobile Phone, Cordless telephone, PC,
Microwave, Camera, Sunglasses, Gold Jewellery, Gold Coin. Gold has a noteworthy
offer as a prize on the sweepstake advancement crosswise over different item
classifications, for example, cleanser and PC. Sometimes, the subtle elements of the
prize on the sweepstake advancement are not determined and are expressed as 'prizes
worth Rs. 50 crore.

1.4.5. Layouts:

Store design and visual marketing are elements that add to the uniqueness of a store.
The outside and inside of a store passes on a few messages about the store to the
customers. Overseeing space is the above all else worry of each retailer, with regards
to outlining the store's inside. Space is dependably a costly and rare asset. Retailers
dependably attempt to amplify the arrival on deals per square foot. Arranging a format
for the stores inside is the initial phase in planning the store's inside. The store ought
to be planned in a manner that the client can take perspective of all segments once he
begins the voyage into the store.

The advancement of a state of-offer is personally connected to its format; the practical
perspective must well thoroughly considered and make note of a scope of diverse
parameters. A state of-offer marketing record is dependably an extremely helpful
apparatus that assembles different data on surface ranges, area, item offices,
cleanliness, checking, item references and differences, item facings, client stream,
area and kind of presentation furniture, and so forth.).
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While client stream is a main component in store designs, item show and deceivability
(in a perfect world just beneath eye-level) is another key component that can be
created through the utilization of low and medium-stature show furniture. Store
shows, racking, cases and counters are made in materials intended to fit in with and
improve deals items and targets, and in addition make a sure climate (reflecting
sociability, warmth, nature, areas, and so forth.). This furniture is orchestrated
deliberately all through the store, upgraded by a proper measured lighting outline,
along these lines allowing a sure "adaptability" in store format which must be
frequently rearranged.

Stores need to make a connection between the client and the item on the off chance
that they are to energize acquiring; they can make this connection through window-
dressing procedures that make successful utilization of differentiations, hues or
themed shows. Items must be attractive and simple to discover, which implies
changing showcases all the time. For offers of some crisp produce (products of the
soil, diversion, and so on.), it is essential that occasional data is accurately shown and
the decision made unmistakably reasonable. Moreover, the game plan of store
presentation furniture contrasts as per the kind of offer included, i.e. self-
administration (free items, facings masterminded by item reference, and so on.) or
shop-administration deals (chose items, game plan, client guidance, and so forth.).

The store design will decide how clients will shop the store, and it all the time is
influenced by the shape and size of the deals floor. Three of the most well known are
the Grid format, the Loop or Race Track design, and the Free Flow format. A very
much arranged floor format will adequately amplify the retail space for more
noteworthy return. The watchful game plan of apparatuses and show racks shape and
impact the movement stream. The activity stream is the "proposed" way of route for
clients to get to all zones of the store – giving careful consideration to special, in-
season or moderate moving stock.

1.4.6. Signage:

Signage alludes to the configuration or utilization of signs and images to convey a

message to a particular gathering, for the most part with the end goal of advertising. A

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signage likewise implies signs on the whole or being considered as a gathering. Signs
are any sort of visual representation made to show data to a specific crowd. This is
regularly showed as way discovering data in spots, for example, lanes or within and
outside of structures. Signs differ in structure and measure in view of area and aim,
from more broad flags, wall paintings, to littler road signs, sandwich sheets and yard
signs.

Today's buyer tends to buy merchandise and benefits both by propensity and by drive.
Nonetheless, concentrates on have demonstrated that the dominant part of offers
originate from motivation purchasing. For example, late research from the University
of California at Berkeley (which broke down 30,000 buys of 4,200 clients in 14 urban
areas) found that 68% of buys were spontaneous amid significant shopping trips and
54% on littler shopping trips.

Signs assume an essential part in drawing in clients to both an organization and its
individual items. An alluring sign is vital and tempting. It makes the beginning
guarantee of what a store may offer, and it sets out the structure for what a client may
anticipate from connections with that organization. As such, signs are a significant
piece of marking, and their worth ought not be thought little of.

Signs normally assume a part in store promoting. These signs can manage clients
through the store, give extra data about key items or attract regard for unique
advancements. They can likewise fabricate your image: By rehashing key messages
and complex segments found in the business' fundamental sign, these store notices
give union to your promoting message and concrete your image's picture in the
client's brain.

The fundamental motivation behind signs is to impart, to pass on data such that the
collector might settle on subjective choices in view of the data gave. When all is said
in done, signs may be grouped by taking after capacities:

1.4.6.1. Information: signs conveying information about services and facilities,

such as maps, directories, or instructional signs.

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 1.4.6.2. Direction: signs showing the location of services, facilities, functional
spaces and key areas, such as sign posts or directional arrows.

1.4.6.3. Signs indicating services and facilities, such as room names and
numbers, restroom signs, or floor designations.

1.4.6.4. Safety and Regulatory: signs giving warning or safety instructions,

such as warning signals, traffic signals, exit signs, or messages conveying
rules and regulations.

1.4.7. Floor advertisement / Floor Graphics:

This is one of the tools in visual merchandising. Floor advertising takes advantage of
unused floor space creating maximum attention of customers towards the message
which the retailer wants to convey. Floor advertising is generally used to advertise
new products or an upcoming promotion; they are also used to direct customers to
certain products on nearby shelves or use them to direct the flow of traffic to a newly
launched product. Floor graphics can be printed on a removable acrylic adhesive with
or without lamination short term floor graphics or long term floor graphics options for
the retailers as they don’t want to leave any stone unturned.

Floor graphics attract the attention of shoppers and are a great form of store
advertising for the retail stores selling FMCG products. Likewise prominent in
shopping centers, airplane terminals and presentation lobbies, self-cement vinyl floor
design are non-slip, strong and simple to apply. The simplicity of floor graphics
means endless promotional opportunities for your customers.

Floor ads are one of the POP advertisements which are stickers of product pasted on
floor where the item is retired or to be racked in order to look for client consideration.
At the season of propelling new items, the greater part of the organizations publicize
through floor space promotions to illuminate clients about new dispatch and make
brand mindfulness. Floor advertisements can have great review because of their size
(degree of scope) and shading plan, abnormal state of acknowledgment as it is not
meddling in client buy.

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This representation in a roundabout way that helps clients to review and in the long
run might prompt purchasing or create aim to purchase the item. The floor
illustrations and advertisements are being utilized for promoting purposes and
advantage retailers to get significant cost for the floor space. There are a few story
advertisement designs in particular outer floor illustrations which are imprinted in the
city, inner floor representation which are for huge corridors, vents, air terminals,
galleries and so forth. Cut shape floor design are alluring set patterns which lead
clients to the item like foot shaped impressions and so on. In clear floor design we can
see the promotions and in addition the floor, as the illustrations is straightforward.

1.4.8. Free Items:

Offering free specimens is an advancement system retail locations use to tempt

hesitant customers to make buys. A free thing offered in an advancement ought to be
a minimal effort, high-esteem thing. A specimen of another scent may be a decent
item to give away for some retail locations. It is imperative to deliberately arrange
free example advancement. A few clients will buy different things, while others will
take the free example and take off.

Offers additional instances of stock to delegates who purchase a sure amount or who
highlight a sure support, it likewise incorporates Offers additional instances of stock
to middle people who purchase a sure amount of a specific item. A large portion of
the additional item advancements (65%) are found in the FMCG classification where
the additional units of item serve as extra utilization units for the purchaser. There are
no additional item advancements found in the durables item classification.

In FMCG, the particular items on which the additional item advancement is

dispatched incorporate Talcum Powder, washing powder, shampoos, chocolates and
biscuits. In the event of toothpaste the advancement requires the shopper to purchase
one toothpaste and get the second toothpaste free. In a talcum powder additional item
advancement, the buyer is offered 20% additional in the same pack. This
advancement is additionally found in the Services area. If there should arise an
occurrence of Internet administration supplier, this advancement offers additional
hours on the Internet and free Internet access on Sunday. If there should arise an

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occurrence of fast Food eateries, the advancement offers a second pizza free alongside
the first pizza or a cut free alongside the first pizza.

1.4.9. In store Television display:

Store television advertising, also known as digital signage, is the act of advertising
any kind of product in any type of retail store, mainly through LCD televisions placed
strategically through-out the store. Placement of these televisions broadcasting
advertisements might be at eye level through-out the store you’re in, at the end of
aisles, and possibly near checkout counters.

They provide eye-catching displays that are on a continuous loop through-out the day,
sales promotions at a retailer’s location, bundled offers, expert advice, product
demonstrations, product samples, special discounts and more. If done properly, in-
store advertising could create powerful recall of a national television advertisement,
right at the point of purchase.

All over the place we turn these days, "advanced signs" are more predominant. The
approach of more moderate vast organization level screen shows (plasma, LCD, LED,
and so on) are notwithstanding permitting the regular printed "picture mode" notices
to be supplanted by these new "computerized signs".

For instance, why keep playing the "today's Coke advancement" cut on the screens at
the neighbourhood market when they come up short on Coke!? Clearly if the hidden
programming stage upheld restrictive playback of substance on any Digital Sign it
was controlling, a dynamic check could be made on the stock level of Coke, quickly
(= milliseconds!) before the Coke promotion was shown.

In the event that the product controlling such an advanced sign found, to the point that
the neighbourhood stock level of Coke fell underneath a predetermined level, it could
then consequently choose NOT to play the Coke notice and another progressively
made commercial could naturally be played in its place (or it could basically be
skipped and play the following notice in a predefined playlist/circle). This would be a
basic case of "element computerized signage".

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Another intriguing case of element advanced signage is the situation where the
bananas at the nearby store are getting a touch over-ready and the neighbourhood
chief chooses to bring down the cost of bananas in his neighbourhood POS (purpose
of-offer) framework. On the off chance that the basic computerized signage
programming stage is shrewd and sufficiently adaptable, it ought to naturally get the
cost of bananas (or whatever other stock thing) from the nearby POS framework at the
purpose of playback and dependably utilize the present cost specifically from the
neighbourhood POS framework's database, whenever the "banana advancement" ad is
played back. Again a decent sample of purported element advanced signage made
conceivable by picking the right fundamental computerized signage programming to
drive your advanced signage system.

Using store video provides customers the ability to make fast and accurate decisions.
It informs customers about actions and promotions and allows you to use Microsoft
PowerPoint to design and display on your screens, letting you create your own
advertisements for special in-store promotions. It saves time and costs by automating
communication/message boards and displays the latest information in real-time.
Similarly as vital, computerized signage can convey better quality design, message
and moving pictures than most buyers can't get on their TV's at home.

1.4.10. In store radio:

In-store radio is a very effective way of getting retailers message across to their
customers, it also helps in creating the correct and apt mood required to encourage
sales in the stores In-store radio offers the retailers some assistance with creating
playlists which are perfectly customized for a sure brand, store or open spot to give a
sure air. In store radio helps retailers as various advertisements can be added between
songs, or information about store opening times or news about special offers or
discounts can be announced. In store radio affects customers in 4 ways:
Physiologically, psychologically, cognitively, and behaviourally.

In store radio is also used by retailers to inform customers about latest offers available
in the store and they also use store radio to make staff announcements. In-store
declarations are an awesome chance to educate your clients regarding unique

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advancements and administrations. Keep the clients upbeat and keep the money
registers occupied. It is so imperative to stay up with the latest with all the most recent
offers and bargains. It may be the case that a client has entered your outlet to purchase
a specific thing and won't stroll down each isle in a store or each store in a mall. In the
event that you educate the client regarding 70% of ladies' attire at Johns Store or
Bread at Half Price today just on isle three, then you are going to create deals.

1.4.11. Vouchers/coupons:

The offer of items to the clients from a settled area (shopping centers, retail chains,
grocery stores et cetera) in little amounts for their end use is called as retailing.
Coupons assume a critical part in advancing the retail locations and making the brand
mainstream amongst the masses. Any record which can be introduced to the retailer to
increase some sort of money related advantage as rebate on any item is known as a
coupon. Clients can get the coupons reclaimed at the particular retail outlets to benefit
pertinent rebates and discounts in shopping.

Coupons assume a critical part in pulling in the clients into the store. Coupons help in
advancing the brand picture of the retail location without immense ventures. It makes
the brand prevalent among the end-clients. People speak more about the brand,
consequently making it a hit amongst the masses.

The impact of coupons is all that much firmly connected to states of mind, feelings
and mental perceptions (Heilman et al., 2002). Of specific significance to this study
were the impacts of in-store moment coupons. Heilman et al. (20-02) alluded to these
coupons as "astonishment" coupons and depicted them as unexpected coupons
experienced while in the shop and that are proposed to be utilized for that specific
shopping trip. Godsend or unforeseen additions are spent more promptly than
increases that were expected by et al. (2002).

This has a tendency to abuse the key monetary presumption which sets that supports
are fungible - that the wellspring of cash ought to have no effect in its utilization. The
creators fight that the expanded acquiring because of the coupon benefit increases was
thought to be an aftereffect of mental pay impact. By diminishing the measure of cash
a purchaser had initially wanted to spend in the store, the shock coupon could have a
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mental wage impact that would take into consideration more impromptu buys on that
trek.

1.4.12. Background music:

Music can be a key element of the retail mix that can drive shoppers towards visiting
a store and making a purchase. Professionally programmed in-store music can provide
retailers with a point of differentiation. Retail store environments provide shoppers
with informational cues about the uniqueness of the merchandise and service quality
and assist in shaping shopper attitudes and perceptions about the global store image.
When deciding to purchase, shoppers respond to more than just the product and
services being offered. Specifically programmed in-store music can be an important
component of store atmosphere and can play a role in store stay time, the purchase
decision-making process and brand recognition.

It may be possible for retailers can change the mood of their stores according to the
in-store music being played. Store image and mood can be changed by the
introduction of carefully selected in-store music. The privilege in-store music at the
correct time might make an enduring impression and manufacture retail mark
mindfulness with existing and potential clients. A customized music technique might
bolster a retail mark and might make an association with particular target markets by
joining client demographics and psychographics.

Retailers can likewise utilize music to influence client's conduct. Music can control
the pace of store activity, make picture and draw in or direct purchaser's
consideration. Music is equipped for bringing out complex full of feeling and
behavioural reactions in buyers, as indicated by North and Hargreaves (1998), as
refered to by Mattila and Wirtz (2001). Music might affect on both to what extent
purchasers spend in a shop furthermore on the amount they purchase. Music impacts a
clients' mind-set. Moderate beat music unwinds the client and causes them to wait in
the store longer, while quick rhythm music may be better for stores and eateries that
need fast turnover. Music isn't just about pace; the sort of music must match the store.

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1.4.13. Shop congestion / crowding/shop density:

Crowding is one of the many factors that can affect the store atmosphere. The
condition of crowding typically includes many shoppers during a given time and
place, but crowding can also occur depending on the floor layout design and display
of merchandises, which may cause limited customer space. Customers' perception of
crowding can affect their emotions as well as buying decisions during their shopping
time.

Consumers will perceive the store to be lacking in organization and a crowded

environment, causing a hindrance in their shopping activities. Aside from the retail
store physical factors that are related to the perception of crowding, the customer's
characteristics also play a critical part in determining crowding. These characteristics
includes their previous crowding experience, buying motives, expectations of
crowding, crowding intolerance, and age. Overall, it is ultimately the physical layout
design that has the largest affect in store crowding.

The individual characteristics also has an influence in the perceptions of store

crowding, though to a lesser extent compared to physical factors in store crowding.
Since customers' perception of crowding can negatively affect their emotions and
satisfactions, it is important for retailers to create an excellent shopping experience
with efficient store layout and design, fixtures display, and other physical features.

Natural conditions, particularly physical thickness and swarming, might influence a

few key measurements of retail shopping conduct. Swarming is by and large seen as
an offensive involvement in shopping circumstances (Bateson and Hui, 1987) as
referred to by Michon et al. (2005). Buyers conform to higher retail densities by
decreasing shopping time, veering off from their shopping arranges, purchasing less
to enter express checkout paths, deferring buys, depending more on shopping records,
diminishing interpersonal correspondences and ceasing from exploratory practices
(Michon et al., 20-05). Every one of these practices may militate against shopper
imprudent purchasing.

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1.4.14. Behaviour of sales people:

In conventional stores it is watched that the part of a salesperson is played by the

retailer himself. A retailer's relationship endeavours are characterized as ''any exertion
that is effectively made by a retailer towards a buyer that is planned to add to the
shopper's apparent worth well beyond the center item and/or administration
endeavours got.

Each time a client visits a store for buying, the first individual with whom he
cooperates is the sales representative. The conduct of a businessperson means a
considerable measure to a client. Along these lines, salesman's state of mind/conduct
can't be overlooked in the whole purchase offer course. Buyers have a tendency to
appreciate a shopping knowledge with strong and well disposed shop partners.
Business people can truly make the providing so as to shop background fun and
charming phenomenal administration.

Purchasers appreciate shopping more without the vicinity of a domineering sales

representative in spite of the fact that they do, notwithstanding, acknowledge when a
salesman is close-by and supportive (Jones, 1999). Unequivocal or verifiable
guarantees by vender’s that the item will execute as determined or that the merchant
fixes it or discounts the client's cash amid indicated period. A sales representative can
be seen as a solid variable towards store picture and can assume a critical part for
rehash buy and expanding fulfilment.

A friendly staff is a necessity and contributes to a vibrant store atmosphere. Without

helpful, nice, and informative staffs, who else will be there to assist the customers
when needed? This can create a negative atmosphere for the customers and also hurt
sales if no one is around to guide the consumers when needed. A gracious friendly
team of staffs is more important than one may think. In fact, they play a large role in
determining the retail environment. The staff are considered to be the voice of the
store, and is often the last face a customer see at the end of their purchase. Although
staffs won't always make a sale with every guest, their assistance is still helpful in
satisfying the customer and making sure that they feel welcomed in the store.

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1.4.15. Store fragrances:
Fragrances in a retail domain upgrade the purchasing background; they enhance a
client's view of the store, nature and the item. Aroma attracts individuals, makes them
stay longer and need to return. Exploratory studies have demonstrated that deals can
develop by no less than 15% when a charming situation supplements the shopping
knowledge. Scents can likewise be utilized to lure individuals; A Baby Care retailer
could give the odour of child powder or infant cologne to give that immaculate vibe
where clients anticipate the experience of caring for their infant.

Retail chains might need to give a flower fragrance or even that extraordinary simple
smell of espresso with danish baked items to draw in clients towards their coffeehouse
where they can unwind, grab a seat and after that proceed with their shopping
knowledge in a more positive disposition. Dress retailers can give a female or manly
aroma to supplement the focused on customer.

Cafés, confectioners and other nourishment retailers can utilize extraordinary

sustenance aromas to lure clients to their stores or to a specific item promotion.
Nowadays smell has risen as a stimulant to urge shoppers into purchasing
merchandise and benefits. The mantra of fragrance showcasing is to make a solid
offering gadget and the first physical experience between the item and the customers.
"Fragrance is an imperative piece of any store atmosphere" says Saurabh Swarup,
head of promoting and item advancement, Barista.

In any case, following dissimilar to the sight and the hearing, olfactory faculties can't
be initiated through the broad communications, the fragrance promoting stays in the
domain of the colourful and the restrictive. "The method is as yet advancing,"

Delhi-based fragrance advisor Rupal Tyagi concurs. "Smells that buoy noticeable all
around impact the choice of the customer for many products. There are mark scents,
suited to a sure component of our tendency, which can quiet down nervousness and
conceivably make the buyer quick to spend liberally." In store aroma is a piece of
tangible marking which is utilized to identify with the client in a more individual
manner than mass advertising. It is a strategy that does what customary types of
promoting can't. It is by and large utilized as a part of retail outline.
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Smell is utilized as a part of marking on the grounds that it builds the clients'
recognition of the brand. The human nose can recognize more than 10,000 distinct
scents, other than being the most touchy of the faculties; it has a colossal reminiscent
force of recollections and encounters throughout the years. Smell is the sense most
connected to our passionate emotions.

1.4.16. Ventilation/ Store Atmosphere:

Atmosphere inside the store affects the emotional state of the consumer, which in turn
causes behavioural changes, both positive such as approach of a customer, buy more,
stay longer etc. and negative customer do not approach, buy less, leave earlier etc.
Temperature inside the store should be kept moderate as per the seasonal conditional
this will help in creating a comfort zone for the customer making him to stay longer
and plus they will have an excellent buying experience.

Inside atmospherics alludes to all parts of the physical environment found inside the
store, Interior barometrical influences deals, time spent in the store, and
approach/shirking conduct of the objective portion. Purpose of procurement
connection and retail unit enhancement impacts the client and thus offers of the retail
unit. Some key elements of inside atmospherics are flooring, music, inside store plan,
level of cleanliness, and so on. A store's physical surroundings have an impact on
shopping conduct of clients through intervening passionate states.

The retail unit environment contains different boosts that may saw by the client's
faculties and every jolt offers numerous alternatives as to shopping practices. For
instance Store music fluctuates by volume, rhythm, pitch and surface, and by the
particular tunes played. Also, different individual boosts can be consolidated to make
a novel environment. To extend an upscale picture, a retail proprietor/director picks
society music, unobtrusive hues, exquisite aromas, cool temperatures, insufficiently
showed stock, and delicate lighting.

At the point when looking for entertainment only, the choice to enter a specific store,
the amount of time to spend inside, and to purchase or not to purchase is intensely
impacted by the shopping environment and its impact on clients' feelings.

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1.4.17. Cash discounts:

Cash discounts are normally given in the event that you pay for a thing preceding the
instalment being expected. Charge deals charge on the marked down cost. The dealer
must keep records that report and represent the rebate. It is the decrease in the receipt
cost for paying the receipt, before the end of the rebate period. Every retailer will
have his own particular criteria for the determination of sellers. The beginning stage
may be a seller enrolment structure, which gives the dateline address, the favoured
method of instalment; the deals charge number, and so on. Enlistment with the
significant assessment powers, e.g. for Sales Tax, is an essential criteria utilized by
numerous retailers to wipe out suppliers.

The impact of surprising cash discounts on drive purchasing habits of customer in a

store is high in comparison to the impact of moment coupons since they likewise
introduce a bonus addition to the buyer. One impact of startling value rebates is that
of creating a summed up full of feeling impact on purchasers (Janakiraman et al.,
2006). Along these lines, Millman (1986) as refered to by Janakiraman et al. (2006)
had prior contended that negative influence prompted by unforeseen cost climbs may
stifle limiting so as to spend buy thought of different merchandise, while positive
influence instigated by sudden cost drops may increment expanding so as to spend
thought of different products.

1.4.18. Parking Space:

In this modern world, time is a crucial factor in consumer buying pattern. Easy
availability of parking space makes the overall buying experience better. With so
many retail outlets in the market the competition is getting tough. Parking space is
one of the parameters consumers are taking into consideration while deciding where
to purchase from.

A better parking area also provides an additional benefit for branding as well as for
promotional activities. This is also one of the moments of truth as today customers are
the type of people who are used to having their needs met immediately, and they
never expect to wait for anything. Depending on the type of business, it would be
sensible to have around 6 to 9 parking spaces per 1,000 square feet of retail space.
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Parking Facilities plays an important role in the success of a retail firm. The
importance of parking facility is of great significance in urban shopping centers where
the number of car owners is increasing day by day and people want to drive to
shopping centers.

Aspects of parking Facility which may affect sale are:

 Spacious: This facilitates movement of vehicles within the parking space and
availability of parking space even during peak time.

 Duration for parking: The management can state the duration for which
shoppers can park their vehicles.

 Cost of parking: It is the amount charged by the shoppers.

 Security: This is required to ensure smooth passage of vehicles, to keep record

of the cars exceeding allotted time duration, and ensure safety of the shoppers
from criminals.

 Underground or upstairs parking: This provides a convenient location for

parking where shoppers have to travel less from the parking place to the
desired stores.

1.4.19. Location:

A good and attractive location of the retail out helps in getting better accessibility,
visibility, traffic and footfall to the store. Retailers want to be located where there are
many shoppers but only if that shopper meets the specification of their selected
market among the various available in the market. Retail stores might benefit from the
traffic of nearby larger stores. Better visibility of retail store has, the less advertising
needed.

A claim to fame retail location found six miles away in a free alone building will
require more advertising than a shopping store situated in a shopping center. There are
numerous elements relating to the determination of a store area like: - Population and
populace patterns in the chose region, Total buying power and the conveyance of the

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 acquiring power, Total retail exchange potential for diverse lines of exchange,
Number, size, and nature of rivalry, Progressiveness of rivalry and so forth.

A large portion of the retailers are offering from retail location space. Some of these
retailers are little single-store administrators, and some are gigantic superstore
discounters. Every area chose came about because of a push to fulfill the requirements
of the specific market each was intended to serve. Numerous components together
like, client's requirement for accommodation, their craving to do correlation shopping,
and the degree of the obtaining power in a business sector region, of the transportation
offices accessible and so on prompted the improvement of various types of retail
stores.

There is an old saying that three things decide the estimation of land: area, area, and
area. No place is that more the case than with stores. Retail locations ought to be
found where market opportunities are best. After a nation, district city or exchange
zone, and neighbourhood have been recognized as palatable; a particular site must be
picked that will best serve the sought target market. Site choice can be the contrast in
the middle of progress and disappointment. An intensive investigation of clients and
their shopping conduct ought to be made before an area is picked. The finest store on
the planet won't satisfy it potential in the event that it is found where clients can't or
won't go to shop. The essential part of the retail location or focus is to draw in the
customer to the area. On the other hand, retailers must take the store to where the
general population are, either at home or in group. Illustrations of taking the store to
where the group are incorporate air terminal area, amusement stops and candy
machines.

1.5. Marketing Strategies in building Brand Image of FMCG:

After analysing the essential characterises of FMCG’s and their markets, these are the
various growth strategies followed by FMCG companies. Generally the success of an
FMCG depends greatly on its marketing strategies. Typically a marketer purses a wide
range of marketing activity in order to increase the demand of its product. For instance
when the prices are competitive the company uses an extensive channel of distribution;

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design a mix of promotional activity to attract more customers. Thus there can be a lot of
strategies which a FMCG company any adopt, some of them are listed below:

1.5.1. Multibrand strategy: A company often nurtures a number of brands in

same category. There are various motives for using a umbrella of all its brand.
The main objective behind this strategy is to cover a wide market share by
including a lot of segments so as to crater the entire market.

For example the strategy adopted by Hindustan lever they have introduced
many brands in the personal wash and detergents category so that no segment is
left untouched. It has dove in the ultra premium segment, hamam for the
economy segment and brands like liril, lux and le sancy for the intervening
segments. In the detergents market also, surf itself is available in different forms-
surf ultra, surf easywash, apart from the generic product. It has the surf range in
the premium segment, and wheel for the economy segment. It has thus covered
itself against any form of attack and captured market shares in every possible
segment.

Nestle has also done something similar to their range of chocolates. It has
barone, milkybar in the popular segment which cost for Rs. 10 each for popular
categories and then it has chocolates like kitkat and kitkat senses which are
slightly more expensive than the plain milk chocolates. Munch was positioned as
a snack-food. In this way, they are covering wide Varity or usages of chocolates.

Another reason to adopt multiple brand strategy is to protect its major brand by
setting up flanked brands. Sometimes the company inherits different brand
names in the process of acquiring other companies and each brand name in the
process of acquiring other companies and each brand name has a loyal
following. An example of this strategy in the Indian context would be that of
coco cola which acquired Thums up, prior to its entry into the market. Today
they have a portfolio of soft drinks, each with a substantial market share.

1.5.2. Product flanking: it refers to the introduction of different combinations of

product prices, to crater several market segments as possible for the company. It
is basically offering a similar product to tap diverse market opportunities with
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 altered prices and quantities. The introduction of oil and shampoos in small
sachet has made them affordable to the lower segment of consumers who
previously could not afford to spend anywhere between Rs. 30 and Rs. 40 for a
standard bottle of a good shampoo. Although the sachets were initially launched
to guard the main brand, surprisingly they become a big success among new and
small quantity users.

The thought behind this idea is to flank the center item by advertising different
variation of size and price so that the consumer finds some variety of brands to
choose from. Nestle has introduced so many variations of its product where
consumers can now buy Maggie masala, Maggie oats, Maggie vegetables in
packets of 10, 20 and 58. Maggie soup is available in small packets as well as
big packets. They have come up with a whole range of the same product in many
sizes and prices to flank their main brand.

1.5.3. Brand extension: Marketers like to have a loyal consumer base so that
those particular brands enjoy high brand equity in the market. In such cases,
companies make brand extensions with the expectation that the expansions will
have the capacity to ride on the equity of the successful brands, and that the new
brand will stand in its own right in the course of time. However, at times, the
idea does not work and the result is that the strong preference for the original
brand itself gets diluted in the bargain. If this strategy works, it has been of
tremendous value leading to the formation of a number of umbrella brands in a
variety of products. Brand extension strategy offers a number of advantages.

A well respected brand name gives the product instant recognition and easier
acknowledgment. It empowers the organization to enter new item classifications
all the more effectively. A classic example of this is Colgate and its brand
extensions. Today this brand has a number of extensions like Colgate toothpaste,
Colgate toothbrushes, Colgate toothpowder, Colgate whitening product and
Colgate mouthwash. All these brands have been positioned at different
segments. Dettol soap is a successful brand extension. There is very little use on
its publicizing. It gets overflow advantage from the advertisements of its parent
“Dettol antiseptic liquid”.
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1.5.4. Building product lines: Many companies add related new product lines
to give the consumer the entire product he/she would like to buy under one
umbrella. Britannia and Ponds has done precisely this.– The latter company
added related products in the product range so as to offer company added related
products so as to offer their customers a one stop shop for their daily
requirement they could possible need, ranging from Cold cream, Toilet soap,
Shampoo, Tooth paste, Moisturising lotion, Talc to Face wash.

Britannia has embraced a comparable procedure. It has presented various types

of bread rolls and supported nourishment in the previous couple of years. By
including various flavours in every product offering the organization has
developed in this industry. By building related lines is Britannia is today the
market leader in the biscuits and related backed food products industry.

1.5.5. New product development: given the extreme rivalry in many items
today, organizations that neglect to grow new items are presenting themselves to
awesome danger. Their current items are defenceless against changing purchaser
needs and taste, new advances, abbreviated item life cycle and expanded
household and remote rivalry. The nourishment classification has likewise seen
developments like softies in frozen yogurts, chapattis by HUL, prepared to eat
rice by HUL and pizzas by both GCMMF and Godrej Pillsbury.

An organization can include new items through the devoting so as to secure of

different organizations or one's own particular endeavors on new item
improvement. With the assistance of new items an organization can enter a
developing business sector surprisingly, and supplement its current product
offerings. New item could likewise mean expansion to product offering or to
supplement the association's current product offering like Probiotic Ice Cream.
Predictable item improvement is a need for organizations endeavouring to stay
aware of changes and inclines in the commercial center to guarantee their future
gainfulness and achievement.

A focused item improvement procedure ought to incorporate a vast duty to

making things that satisfy specific shopper needs or attributes. These attributes

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 may incorporate shoppers' craving for the accompanying: items that are superb
or minimal effort; items that give the purchaser speed or adaptability; or items
that offer some other type of separation that sets them an attractive buy.

1.5.6. Innovations in core products: in the FMCG business, the life of a

product is short. Marketers, therefore continually try to introduce new brand to
offer something new and meet the changing aspirations of the customer. A
consumer is also open to try out new options and, on the other hand, brand loyal
segment is persuaded to upgrade their choice. Hence it is prudent for a marketer
to innovate from time to time both by technological expertise and/or based on
the consumer’s feedback. Such innovations are tried around the core product of a
company.

For example Colgate redefined its toothpaste by selling Colgate gel. One of the
greatest changes to hit the FMCG business was the "sachet" bug. In the most
recent 3 years, cleanser organizations, cleanser organizations, hair oil
organizations, scone organizations, chocolate organizations and a large group of
others, have presented items in littler bundle sizes, at lower cost focuses. This is
the single enormous development to reach new clients and grow piece of the pie
for worth included items in urban India, and for general FMCG items like
cleansers, cleansers and oral consideration in country India.

1.5.7. Long term outlook: Many companies adopt a long term outlook towards
growth in FMCG market. In this process short term loss might be absorbed for
the long term prospects of the company. The example of this can be the strategy
used by kelloggs in India. The idea of cornflakes for breakfast advanced by
kelloggs is completely American in nature. A nation like India, which is socially
so not the same as America, couldn't acknowledge the kelloggs offer. However
kelloggs with its long term outlook took years before finally breaking even.
Today it is the market leader in the breakfast cereals market, and controls and
covers the whole market single handed.

1.5.8. Extending the PLC: During a product’s life, an FMCG company may
have to reformulate its marketing strategy because economic conditions change,

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 competitors make new assaults and the product encounters new type of buyers
and new requirements. Organizations and their advertising experts watch out for
the life cycle of an item. As such, when an organization discharges another item,
they do as such realizing that the item will experience a sure life cycle.

As that life cycle nears an end, the organization must choose what to do: resign
the item by and large or develop the life spin of the item through various
systems. Among these methodologies are new ways to deal with bundling and
highlighting the item, diverse evaluating procedures for the item, re-marking
strategies for the item, and extending the business sector for the item to a group
of people abroad.

For instance Lifebuoy, since commencement in late nineteenth century, was an

agile and great native brand of India, coming to a large number of country
clients with a guarantee of 'wellbeing and cleanliness' as a stage of its business.
Its popular publicizing jingle, tandurusti ki raksha karta hai Lifebuoy, was
famous to the point that it empowered the brand "Lifebuoy" to be seen as a 'red
carbolic cleanser' for quite a few years.

The brand went through delayed phases of development and development amid
the majority of the second 50% of twentieth century and was confronted with a
decrease stage amid mid 21st century with deals falling at the rate of 15%–20%
every year. The descending pattern of Lifebuoy carbolic cleanser deals made
Hindustan Lever Ltd., to pull back the item and repositioned as superior to the
first with more variations and bundled beautifully. The procedure expanded the
lifecycle.

1.5.9. Expanding market by usage: A company usually expands the market

for its brand in two ways. That is, either to expand the quantity of clients or by
empowering more utilization per admission. The use rate of the purchasers can
be expanded in various ways. For example, it might attempt to instruct or induce
clients to utilize the item all the more every now and again. Illustration Monaco
bread rolls were at first situated as the "ideal salted" scones. To expand the
events for use, it pitched itself as fantastic plain, awesome with fixings. What

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 was basically a plain, salted roll transformed itself into bread that can be
expended as it is or with garnishes, along these lines expanding its event for use.

Company can try to induce users to consume more of the product on each
occasion. Say a shampoo marketer might convince the user that the shampoo is
more effective with two rises rather than one or the company may try to invent
new product uses and induce consumers to use the product in more varied ways.
Fevicole and M-seal was both industrial product till they decided to enter the
consumer market.

1.5.10. Wide distribution network: A very straightforward method for

expanding a FMCG organization's piece of the pie is by adding to a solid
dissemination system, ideally as far as more area. Once the reach of the product
has been extended, it is likely to gain in market share because of its deep
penetration. An extensive distribution system can be developed in due course;
then again the organization might gain another organization which has an
extensive distribution network. As Brooke bond, Hindustan unilever have
developed a good distribution network. This stands as the prime reason behind
their market leadership in business.

Organizations are progressively utilizing retail channels other than the

customary merchants to help deals and target new purchasers. The quickest
developing conventional exchange divert in India today is physicists. This
advancement is conceivably imperative for FMCG brands on the grounds that
physicists ordinarily offer more show territory, draw in an alternate profile of
customer than conventional merchants, and add believability to the items sold.

Organizations like Hindustan Unilever, Procter and Gamble, Dabur – the

Ayurvedic maker, and restorative and social insurance maker Emami have long
sold OTC tablets, diapers, ladylike cleanliness and other important items through
the scientist channel. The distinction today is that offers of excellence items and
premium beautifying agents are moving from neighbourhood food merchants to
scientific experts. Physicists are driving offers of premium creams,

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 antiperspirants, cleansers, face wash and cleanser. L'Oreal India is pushing its
L'Oreal and Garnier brands through this channel.

1.5.11. Monitoring the pulse of the consumers: Companies spend

considerable effort to find out what’s, where’s, when’s and how’s of their
consumers. They figure out all sorts of things about them that the consumers are
not at all alert of. Big companies normally conduct market research to find out
more about their consumers and step by step instructions to fulfil their
requirements and needs in a superior way. It helps them to monitor the pulse of
their buyers so that they are able to identify and anticipate the needs of the
consumers and be able to satisfy them in a better manner than the competitors.

1.5.12. Advertising and media coverage: Promotion is required to construct

mindfulness around a FMCG or brand which is accessible in the business sector
yet relatively few individuals may think about it. Instructive publicizing figures
vigorously in the spearheading phase of an item class, where the goal is to
fabricate essential interest. Enticing publicizing gets to be essential in the
focused stage, where the organization's goal is to fabricate a specific interest for
a specific brand. Most promoting falls into this class. For example Pantene
shampoo attempts to persuade consumers that it delivers more benefits than any
other brand of shampoo. Marketers try to establish the superiority of its brand
through specific comparison with one or more brands in its product class.

Reminder advertising is very common with established products. Expensive

colour ads in magazines do not have the objectives of informing or persuading
buyers. Perhaps it tries to remind people to purchase the product. The basic idea
about growth through advertising by a company is to increase market share
through more share of mind as more information about the company and its
product will induce the viewer at time of actual demand.

1.5.13. Sales promotion: Sales promotion offers a direct incentive to buy more in
the short term. They are designed to stimulate quicker and greater purchase of
particular products by consumers or the trade. However, a few points have to be
kept in mind. They yield faster and more assessable responses in sales than

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 advertising does. They mainly attract the deal prone consumers who switch
brands as deals become available.

Loyal buyers normally do not change their brand a result of competitive

promotion. For example lays attract customers by offering those trips abroad or
Colgate asking the consumers to use their product and get a chance to meet the
super stars such as actors or models. The promotional strategy of buy one and
get one free on may FMCG products persuade customers to buy the product.

In store 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 or the trade. In store promotion creates a positive impact on consumer
purchase intention and form long-term relationship with the customer thus create brand
image in customers mind. Sixty percent of all in-store purchases are unplanned, according
to associate professor of marketing at Lehigh University in Bethlehem, Pennsylvania
which provide a great scope for the marketer to use in store promotional activities. The
present study aims to understand the impact of each store promotion tool in building
brand image of a FMCG product and also the overall impact of store promotional tools on
consumer buying decision in FMCG products.

1.6. Rationale of the study:

Today’s creative and talented retailer can use this upcoming art to breathe in new life into
his store products. Retailer’s passion for designing sometime new and creativity applying
it to increase their sales are essential to be a excellent visual merchandiser. A perfect
design process the ability to construct ideas that are different from the competitors and are
apt for the store’s image. Awareness of happenings in fashion world is needed so as to
keep up-to-date with the dynamics of the market constantly.

Thus studying store promotion has become an important element in retailing that is a
effort involving top management, architects, merchandising managers, buyers, the visual
merchandising director, designers, and staff. Store management starts with the store
building itself. The management decides on the store layout as it replicate the products
the store is about to sell and how to create a warm, friendly, and approachable atmosphere
for its potential customers.
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Image as well as the products displayed is important in attracting many customers and
selling to them. All aspects of the store contribute to its image as perceived by customers.
As shopping is an ongoing process rather than a predetermined activity. The store takes
on the characteristics more of a theatre than an art museum. The staff and the customers
are the actors and the displays are part of the props that stimulate the thoughts and chip in
to the pleasure of the play. Appropriate and imaginative displays are very important in
developing customer enjoyment of retail process and in supporting their interaction with
the sales staff. Here the visual merchandiser has to play the role of art director.

According to Kotler (2003), customer perception can be defined as a process of selecting,

organizing and interpreting information to make meaningful picture. Same stimulus can
be perceived by clients in diverse structures relying upon their particular consideration,
contortion and maintenance. Particular consideration implies that the clients channel data
as indicated by their comprehension. Specific twisting implies that clients change the
significance as per their own implication. Further in specific maintenance, clients recall
those contemplations and emotions which they have practiced well before. Hence, it will
be interesting to know the customer perception about the effectiveness of store
promotional techniques.

The study focuses on the various marketing strategies used by FMCG sector with special
focus on in store promotional tools used by marketer in case of FMCG products and also
to understand the significance of these tools in creating brand image and helping the
customer to prefer a suitable brand and also the marketer to choose such in store
promotional tool which can help in customer retention.

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 CHAPTER 2 - REVIEW OF LITERATURE

During this time of globalization, normal customers today are exceptionally requesting
with regards to the format and feel of any foundation they visit. They need to be pulled in
and spurred to enter a shop or slow down and at that point of choice having rests the
effect between a prospect and a deal for retailers. Effective retailing organizations
dependably wish to make an unmistakable and reliable picture in the clients mind.
Advertiser can make that positive client picture that prompts effective deals.

Advertiser in this way has turned into a basic part of retailing and retailers are
progressively looking toward making a novel situation that is tastefully satisfying and
additionally being financially savvy. Here, technology comes into play with its
capabilities to attract as well as provide information on consumer behavioral patterns.

Also in modern retailing, attaining leadership and building a store image in the
customer’s mind requires a great deal of skill and planning. A Store brand has to break
through the clutter and make an impression in the minds of customer’s to ultimately
change the synchronized entity of the store that’s in the customer’s mind into a specific
image. Image is the outlook of a store and the series of mental picture and feelings it
evokes in the beholder. Image is the foundation of all retailing efforts.

Studies indicate that a retailer has less than eight seconds to grab the attention of a
momentary customer. Marketing strategies makes it possible by grabbing the customer’s
attention and making a positive impression in those precious few seconds as he is aware
of the rules of perception. The researcher would like to clear the Rules of perception

 Every potential purchase starts with a first impression.

 The initial contact with the customer will determine

i) How long he will stay

ii) His inclination to buy

iii) Created a positive or negative feeling towards the shop/brand.

Store promotion has become an integral part of marketing strategies used by marketer in
creating brand image of fast moving consumer goods. It devours an exceptionally huge
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part of the special costs of advertisers. With the expansion in number of store outlets and
the recurrence of clients visit to stores the significance of store advancement has
expanded. Chiefs are presently depending vigorously on store advancement on the
grounds that its effect on deals is more straightforward, quick, and quantifiable when
contrasted with other special procedures. The dynamic nature of store promotion has
inspired many researchers to turn their attention to study the various issues related to this
element of promotion mix. Numerous studies have been directed on the arranging, usage
and assessment part of offers advancement around the world. These studies are reviewed
and presented briefly below:

Bogart (1985), has carried out a study on “Understanding consumers attitude

towards advertisement for brand building”. This study incorporates diverse sorts of
conventional and web based media and the elements which are adding to buyers'
observation towards promotions are excitement, aggravation, instruction, respectability
and demography. As indicated by this study, by comprehension buyer demeanor towards
promoting, originator and advertiser can figure better procedures for their publicizing
battle. Promoting in both conventional media and the online networking is either barely
noticeable by the gathering of people or is seen to have little esteem.

Kahn, E. Barbara and Loouise, A. Therse (1990) through their study "Effect of
Retraction of Price Promotions on Brand Choice Behavior for Variety-Seeking and
Last Purchase Loyal Consumers" investigated how in-store price promotions affect
market share after the promotional offers have been retracted. They find that the effects of
promotion are contingent on both the choice pattern of subjects- whether or not subjects
switch among brands- and the ubiquity of promotions in a product category. If only one
brand is being promoted and subjects are generally loyal to the last brand purchased,
brand choice probability declines from pre-promotion levels once the promotion is
withdrawn. However if subjects tend to switch among brands in the absence of
promotion, or several brands are being promoted, this decline is mitigated and/or does not
occur.

Grover, Rajiv and Srinivasan, V. (1992) presented their study on"Evaluating the
Multiple Effect of Retail Promotion on Brand Loyal and Brand Switching
Segments". They found that the market can be characterised by brand loyal segment and

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switching segments; promotional variable have significant effects on segment market
shares, the effect being different across segments; store share is related significantly to
promotional attractiveness of a store; the overall promotional attractiveness of the product
category has significant current and lagged effect on category volume and the lagged
effects resulting from consumer purchase acceleration and stock-up last longer for brand
loyal segments than for switching segments.

Guptha, Sunil and Lee, G. Cooper (1992) examined "Discounting of Discounts and
Promotion Thresholds" in which buyer's reaction to retailer's value advancement was
examined. Their study demonstrates that purchasers "rebate" the cost rebates. It likewise
recommends that the marking down of rebates and changes in buy expectation relies on
upon the markdown level, store picture and whether the item publicized is a name mark
or store brand.The study also investigated the existence of promotion thresholds.

They used experimental data and an econometric methodology to gather empirical

evidence that consumers do not change their intention to buy unless the promotional
discount is above a threshold level. This threshold level differs for name brand to store
brand. Specifically they found that the threshold for a name brand is lower than that for
store brand. In other words stores can attract consumers by offering a small discount
while a large discount is needed for similar effect for store brand. The study also indicates
the existence of promotion saturation point above which effect of discounting on changes
in consumer purchase intention is minimal. These results confirm consumers shaped
response to promotions.

A study by Hoch et al. (1994), on ‘EDLP, HiLo and Margin Arithmetic’, reasons that
a concentrated store limited time action permits the retailer to keep up or expand its
turnover by accomplishing a higher infiltration rate in the business sector region. So also
it additionally serves to build the recurrence of visits and normal sum spent in the store by
the buyer. Besides, store-level advancements help to strengthen a low-value situating, a
key to execution. While the utilization of a "Regular Low Pñce" method is another
approach to accomplish such a situating, it has been demonstrated that such a
methodology prompts an increment in deals to the detriment of considerable misfortune
in benefit.

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Lea- Greenwood, Gaynor (1998) in their study on “Visual merchandising: a
negelected area in UK fashion marketing?” According to him visual merchandising
was resistant with still from the television, cinema and magazine advertising campaign
inside window and internal displays, thus supporting the product which is to be sold.
Store personnel were completely briefed on the product features shown in the campaign
and, that for the company, the achievement was "calculable" by sales of the product and a
more "positive" view of the brand, according to the top management. The seller’s actual
and only role in this process is to ensure that there were enough products available to
support the demand that would be created. Layouts of the store reflects the products that
are to be featured. All salesperson at store level were educated not only of what was to be
featured but also where, e.g. television and region, and when, e.g. in the break of a
popular soap. This ensured a cohesive campaign with integrated effort and clear
objectives.

Tyreman, David; Walton, Keith (1998) writes about Theme-oriented displays and a
conducive shopping environment in the article “Visual merchandising ups sales”. He
states that Visual merchandising the art of dressing merchandise display areas with
theme-oriented props--creates a mood for buying. Even though shoppers live in a self-
service world, surveys show service is still of prime importance.

People want their senses to be indulged-to feel good about what they are buying, where
they are buying it and how they are going to feel about consuming it. It is a retailer's
responsibility to deliver to the customer these "feelings" when they are shopping. And a
conducive shopping environment sets the tone for the customer's psychological frame of
mind for the process of sale to effectively take place.

If a gentlemen's suit store changed its decor to high-tech video monitors, blasting techno
music and employed sales people with bleached blond hair, tattoos and nose piercings, it
would have misunderstood its customer, and the store's normal customer would feel
alienated. However, if the same theme is applied to a hip jeans store whose main
customers are stylish teenagers one would be stimulating business as it conveys the
customer "I understand you."

Wood, Van R; Darling, John R; Siders, Mark (1999) in the article “Consumer desire
to buy and use products in international markets; How to capture it, how to sustain
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it” the writers had mentioned about the important element of customers loyalty.
According to them in today's competitive markets, where consumers have significant
options, marketing resource expenditure strategy must be backed by the answer to some
essential questions, namely - who are the customers?, what are their needs and wants?,
and most importantly, what do they think of the organization's products, and marketing
efforts? Often tagged as "relationship or customer sensitivity analyses" they have become
important for organizations' long-term achievement because it overheads five times more
to acquire a new customer than to keep a current one (Buzzell and Gale, 1987).

Relationship analyses hub on wellsprings of upper hand that depend on an association's

putting forth that separate it from rivals according to shoppers. The key, once more, is
that separation favorable circumstances come just from items and showcasing hones that
are important to target clients. The goal is to comprehend the drivers of consumer loyalty
and dependability that are identified with client affinity to purchase and utilize particular
items.

Smith, F. Michael and Sinha, Indrajit (2000) examined “The Impact of Price and
Extra Product Promotions on Store Preference”, over four store item classifications
controlling independently for the impact of two class based directing elements viz. item
stock-up attributes and value level. Results demonstrated that a larger part of purchasers
favored blended advancements; sort of advancements does impact store inclination (with
cost and volume advancements having the best impact). Customers for the most part
favored value advancement for higher evaluated item classifications and they favored
volume advancements for lower estimated classes.

Yalch, Richard F.& Spangenberg, Eric R. (2000) in their study on “The Effects of
Music in a Retail Setting on Real and Perceived Shopping Times” has linked
shopping behaviour to environmental factors through changes in emotional states.
Analyses revealed that individuals reported themselves as shopping longer when exposed
to familiar music but in fact the customers kept shopping for longer hours when expose to
unfamiliar music. Shorter actual shopping times in the familiar music condition were
related to enlarged provocation. Longer saw shopping times in the recognizable music
condition seem identified with unmeasured psychological variables. Albeit passionate

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states influenced item assessments, these impacts were not specifically identified with the
music controls.

The results of this study bolster the conviction that shopping time is influenced by a retail
ecological component like store music. People who had a decision as to the term of their
shopping background shopped longer when listening to less well known music contrasted
and more natural music. This distinction seemed inferable from contrasts in passionate
reactions to the two sorts of music. People reported being less stirred while listening to
the new music contrasted and the natural music. Once the impact of excitement on
shopping times was viewed as, different responses to music commonality (either
measured or unmeasured) did not affect real shopping times.

The impacts of commonplace and new music were altogether different when seen instead
of real shopping times were considered. At the point when aggregate shopping time was
controlled, people reported looking for a more drawn out time when they had been
presented to the less well known ambient sounds contrasted and the commonplace frontal
area music. This impact was not intervened by the passionate reaction measures,
recommending that it may reflect psychological as opposed to enthusiastic responses.

Karen A. Machleit, Sevgin A. Eroglu & Susan Powell Mantel (2000), has done a study
on “Perceived Retail Crowding and Shopping Satisfaction: What Modifies This
Relationship?” which has revealed that an increase in perceived crowding in a retail
store created from either human or structural density can decrease the level of satisfaction
that shoppers have with the store. Overall, the results indicate that the effect of retail
crowding on shopping satisfaction is not a simple, direct one.

A crowded store may or may not result in decreased satisfaction; this effect depends on a
number of different individual and situational factors. The results of two field studies
indicate that although emotions partially mediate the crowding– satisfaction relationship,
the decrease in shopping satisfaction due to crowding is mediated by expectations of and
tolerance for crowding. A laboratory experiment that replicated the field studies showed
that the relationship between perceived crowding and store satisfaction also appears to
vary by store type, albeit with the existence of a “floor and ceiling” effect.

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In a study by Shun, Yin, Lam et.al. (2001) on "The Efficacy of Sales Promotion in UK
Supermarkets: A Consumer View" examined the influence of three categories of
retailer marketing objectives i.e., attraction effect, that focuses on consumer's store entry
decisions, conversion effect, that relate to consumer's decision about whether or not to
make a purchase at a store they are visiting and spending effect, that represent both dollar
value and composition of their transaction, on store performance. Results suggest the
following:

1. Price promotion has little impact on front traffic, but positively affect store entry
and likelihood that consumers will make a purchase.

2. The effect of price promotion on consumers spending in a store is significant, but

varies with type of promotion employed

3. Greater promotional scope enhances store entry, but promotion with narrow scope
seems to have narrow impact on store traffic.

4. Clearance promotions have a weaker effect on store entry when compared to other
multi-category promotion, while new product promotions have positive impact on
conversion.

5. Newspaper advertising, when compared to targeted coupons, has a stronger effect

on store attraction but a weaker effect on spending.

Kleinman, Rebecca (2002) in both the articles “Interiors as stylish as the clothes
women wear daily” and “Sleek Surroundings: Design gurus are being enlisted to
create retail environments that are just as cool as the clothes women’s wear daily”
had stated the importance of store design to entice shoppers and reinforcing brand
identity. The writer explains that as stores continue to fill sales floors with merchandise
similar to that of their competitors -- and while a sluggish economy forces many
consumers to tighten their purse strings -- designers who have retail units, as well as
specialty retailers, are seeking out ways to differentiate themselves from each other in
order to increase foot traffic. One sure way to entice shoppers, while reinforcing brand
identity and providing a unique sensory experience, is through sleek and savvy store
design.

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Young, Scott (2002) in his article “Winning at retail” the writer states that more than
two-thirds of health and beauty purchase decisions are made at the point of sale, as the
shopper stands at the shelf or display. Therefore, it follows that each brand's point-of-sale
presence - including packaging and merchandising - has a direct and significant impact on
its sales revenue. The writer creatively puts down merchandising system in three steps-

• Pre-empting competition

• Differentiating from competition

• Closing sale.

PRE-EMPTING THE COMPETITION: Across hundreds of studies, perhaps the single

most consistent-and intuitive-finding has been that shoppers do not consider product
categories fully and systematically. In fact, most shoppers only actively view about 50
percent of the brands within a category. The other half of the brands never get a chance to
sell, because they are never seen; and a very high correlation has been found between
how quickly a brand is seen and considered and its likelihood of purchase, whereas
"unseen is unsold."

DIFFERENTIATING FROM THE COMPETITION: The Author points out the

importance of Differentiation at retail. Differentiation at retail is different from that in
advertising, because the competitive brands are immediately next to one another on the
shelf and because the shopper is often spending less than ten seconds comparing products
and making a decision. Given these realities, it does not pay to be subtle. Differentiation
must be immediate and intuitive

CLOSING THE SALE: The writer than finally mentions about closing the sale aspect.
Once shoppers have selected a new product, they often need an extra bit of reassurance
before placing it into their shopping carts. In health, beauty and cosmetic categories, it
often is as simple as addressing a question or two that may be lingering in the shopper's
mind.

Gilbert, D.C.and N. Jackaria (2002) in their study on "The Efficacy of Sales

Promotion in UK Supermarkets: A Consumer View" studied consumer’s response to

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the four different promotional deals most commonly used in the UK supermarkets
i.e.coupons, price discounts, samples and "buy-one-get-one-free". The authors used multi
discrirninent analysis to study whether there was an association between four consumer
promotion approaches and respondent's reported buying behavior.

Findings indicated that only price discount promotion has proved to be statistically
significant on consumers reported buying behavior. Purchase acceleration and product
trial were the two most influential variables related to discount. For "buy-one-get-one-
free", while the result is not significant, the two variables, brand switching and purchase
acceleration were found statistically significant.

Morrison Michael (2203) conducted a study on “The Power of In-store Music and its
Influence on International Retail Brands and Shopper Behaviour: A Multi-Case
Study Approach” which upbraided that Retailers are thinking that its more hard to
separate their stores based upon the conventional segments of the retail blend. Retail
location components, for example, shading, lighting and visual marketing have
dependably been considered as effective components affecting the purchasing decision
making process. Retail locations should a great deal more than simply uninvolved spots
that show stock available to be purchased. One of the key difficulties for retailers is to
continually increase the value of their image.

The accentuation has moved far from in-store item shows, towards components that
energize the faculties of customers. Components, for example, level screen recordings,
design, music, fragrances, lighting and flooring tend to catch the brand picture or identity
and make one of a kind climate and shopping knowledge. The use of strategically
selected in-store music is thought to create an immediate distinction for a retail brand.

Store image and mood can be changed by the introduction of carefully selected in-store
music. The right in-store music at the right time may create a lasting impression and build
retail brand awareness with existing and potential customers. A personalized music
strategy may support a retail brand and may make a connection with definite target
markets by incorporate customer’s demand and psychographics.

Music can be a key element of the retail mix that can drive shoppers towards visiting a
store and making a purchase. Professionally programmed in-store music can provide

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retailers with a point of differentiation. Retail store environments provide shoppers with
informational cues about the exclusivity of the product and service quality and assist in
shaping shopper attitudes and perceptions about the global store image. When deciding to
purchase, shoppers respond to more than just the product and services being offered.
Specifically programmed in-store music can be an important component of store
atmosphere and can play a important component in increasing the store stay time, the
purchase decision-making process and brand recognition. The study provides evidence
that specifically programmed in-store music can improve a stores ambience.

Gijsbrechts E, Campo K, Goossens T (2003) in their study on “The impact of store

flyers on store traffic and store sales: a geo-marketing approach” expressed that the
utilization of store flyers is a vital piece of limited time exercises for drawing in clients
and animating all the more spending keeping in mind the end goal to expand store activity
and deals. It is likewise a wellspring of income from makers whose brands are
highlighted on the flyer. Subsequently, the proper configuration of these flyers can
prompt better store execution. Not just is the sythesis of store flyers considered in this
study additionally different components, for example, neighborhood customer attributes,
along these lines fusing a geomarketing methodology.

In a study by Doreen Chze Lin Thang, Benjamin Lin and Boon Tan (2003) in
“Linking consumer perception to preference of retail stores: an empirical
assessment of the multi-attributes of store image” discovered key store picture
properties as essentially affecting buyer inclination were marketing, availability,
notoriety, in-store administration and climate of the stores. Store picture in the feeling of
the store as a brand is normally measured as shoppers' impression of store execution.

The decision of store is taking into account the idea of worth percept differing qualities,
i.e. clients are prone to be more fulfilled by the offering as the capacity of the offering to
give purchasers what they need, need, or craving expands in respect to the expenses
acquired. A general supposition in the marking writing is that a good brand picture will
have a positive effect on purchasers' conduct towards the brand, for example, the chance
to charge premium costs, purchasers who are more steadfast, and more positive informal.

Sinha & Banerji (2004) in their study on “Store Choice Behaviour in an Evolving
Market” observed that buyer’s rationale behind selecting a specific shopping center is a
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component of numerous variables. They are stores area, store plan, physical offices,
merchandize combinations, ad and deals advancement, client administration, item mixed
bag and helpful timings.

The goal of this study was to distinguish, at a full scale level, the drivers of store decision
in different item classes, in the advancing's connection retail industry in India. The paper
endeavors to associate the particular store highlights as saw by respondents with the
genuine inspirations of different buyers in disparaging different stores. In the process it
gives knowledge in respect to whether the normal Indian purchaser values the new store
measurements offered by retailers as a piece of the new organizations rising in the
commercial center.

The structure advanced for assessing viability of more up to date store organizations is
essential since it has a noteworthy effect on the general benefit of the retailing business.
Proposes that clients in a creating market, for example, India don't oblige the
administration gear offered by large portions of the new store a configuration rising in the
business sector and notes that this may cast a genuine uncertainty over the retail unrest,
which has come to fruition in the Indian advertises of late. A few speculations about the
retailing's advancement business in India, which requires further examination, are
proposed.

Dawes, John (2004) reported the result of his study on "Assessing the Impact of a Very
Successful Price Promotion on Brand, Category and Competitor Sales" in which they
discussed the effect of a massively winning price promotion strategy in a consumer goods
category. Specifically, it sought to determine if this large value advancement had any
long haul sway on brand esteem; fleeting effect on aggregate class volume for the retailer;
transient impact on contending retailers; and long haul impact on classification sales for
the retailer who runs the promotion.

Results of the study showed that a very successful promotion did not have any longer-
term effect on the brand (positive or negative), be that as it may, it did grow the aggregate
classification for the retailer, however incidentally. Deals dropped somewhat for one
contending retailer at the season of advancement out of the three units concentrated on. It
was watched that the advancement was trailed by a decrease in the aggregate class
volume for the retailer, proposing some level of procurement speeding up or stockpiling
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by shoppers, Longer-term negative impact on classification offset roughly two third of the
gain of the price promotion to the retailer.

Saronge, Florence (2004) in “Marketing strategies used by manufacturers of Fast

Moving Consumer Goods (FMCGs) in Kenya” concluded that the FMCG companies
are faced with heightened rivalry, purchasers who are more esteem cognizant and less
brand faithful, diminishing item life cycles and progressively capable retailers; this imply
that numerous new FMCG items fall by the wayside. In spite of the basic way of the item
dispatch process, next to no is thought about what makes another items dispatch in the
FMCG business fruitful in Kenya.

This study consequently expected to fill the crevice by endeavoring to answer the inquiry:
What are the techniques utilized by makers of FMCGs as a part of Kenya when
dispatching new items and to what degree do they utilize these methodologies? The
destinations of this study were to focus the methods utilized by makers of FMCGs as a
part of Kenya when propelling new items, the degree to which the methodologies are
utilized and to figure out which procedures are utilized for the diverse classifications of
items in the FMCG business in Kenya.

Semeijna Janjaap, C.R. Allard, & Ambrosini A. Beatriz (2004) in their research on
“Consumer evaluations of store brands: effects of store image and product
attributes” has examined how store image factors and various categories of perceived
risk connected with product attribute affecting consumer’s evaluation of store-branded
products. A structural model was formed and tested in the study, which provided
indications of the possibility of store brand success in various product categories. The
findings are as follows:

 Store image is considered an important predictor of attitude towards a store brand.

 New store brand products have maximum prospective in product categories associated
with low functional, psychosocial and financial risk. On the contrary, products which
belong to categories with large quality variance and high public visibility are more
likely to fail.

 The present study confirms that developing, nourishing and sustaining a store image
can create opportunities to attain isolation and positioning in comparison to other
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 chains and sell profitable store brands. Retailers should therefore focus more on those
aspect which helps in developing store image, such as store environment,
merchandise quality and value, and customer service.

In a study by “Priya Jha-Dang and Abraham Koshy (2005) on the topic “An
Empirical View of the Different Types of Consumer Promotions in India” criticizes
that the distinctive advancements incorporate free gifts, offers, cost offs, additional item
offers, trade offers, purchase more-and-spare offers, challenges and sweepstakes. The
most as often as possible dispatched advancement is the free blessing offer took after by
the sweepstake offer and additional item offer. A few distinctions in patterns are found
crosswise over FMCG, Consumer Durable and Service areas.

The most popular type of promotion strategy used in stores is the free gift promotion,
which constitutes more than half (55 %) of the aggregate number of advancements. This
is followed in fame by the sweepstake advancement (11%), which thus, trailed by the
additional item advancement (8%) and the cost off advancement (8%) in notoriety. In
Services, the request of recurrence of advancements is the premium advancement took
after by the additional item advancement took after by the cost off advancement. In the
event of Durables, the request of recurrence of advancements is the premium
advancement took after by the sweepstake advancement took after by the cost off
advancement. In case of fast moving consumer goods the order of occurrence of the
promotion is the premium promotion follows by the extra product promotion, followed by
the sweepstake promotion.

In a study by Nelson Oly Ndubisi and Chiew Tung Moi (2005) on “Customers
behaviourial responses to sales promotion: the role of fear of losing face” examines
the impact of various sales promotional tools, such as coupon, price discount, free
sample, bonus pack, and store display, on various product trial and repurchase behaviour
of consumers. In addition, the restraint role of fear of losing face (or embarrassment) on
the relationship between the sales promotional techniques and product trial was also
explained. Study exposed that the price discounts, free samples, bonus packs, and in‐store
display are related with product trial whereas coupon does not have any noteworthy effect
on product trial. Fear of losing face significantly moderates the relationship between
in‐store display and product trial.

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Marzia Freo (2005) in a study on “The impact of sales promotions on store
performance: a structural vector autoregressive approach” states that given the
significance of advancements to vast retailers, there is a need to assess the effect of
limited time battles on net store deals. The vicinity of short-and long haul factually
critical impacts from elevated thing deals to non-advanced ones and their length of time is
explored. Results demonstrate that advancements have noteworthy consequences for
fleeting general deals at store total level as well. Specifically, offers of advanced
merchandise in the family unit class are seen to instigate hus werge, synchronous
increments altogether non-limited time deals.

According to Sung Jin Yoo and Young Jae Chang (2005) in their study “An
Exploratory Research on the Store Image Attributes Affecting Its Store Loyalty” it
is found that in retail establishments, store air, area, shopping office and deals faculty
administration influence store steadfastness fundamentally. In rebate stores, promoting,
nature of stock, credit administration and store climate have a noteworthy impact upon
store devotion factually. On the basis of the research various points were found out,
which are mentioned as mentioned as follows:

Firstly, the store atmosphere was found to have the largest influence on the store loyalty.
By displaying and decorating commodities with lighting and color, they try to make
luxurious images of their service scape such as facilities since merry and convenient
atmosphere of shopping leads to store loyalty.

Secondly, easy access of location also has meaningful influence on the store loyalty. This
means that transportation and parking convenience is important in the competition of
department stores. The transportation convenience depends on distances from home or
working place and connection to buses and subways, and parking convenience depends
on size of parking lot and easiness of entrance and exit.

Thirdly, convenience of shopping meaningfully affects store loyalty. It includes easy

movement between sale places, easy search of goods that consumers want due to the
excellent layout and display of goods, and one-stop shopping possibility. Fourthly,
salesperson service is another factor of store loyalty. This means that retail marketer
should pay more attention to reducing customers’ complaints by educating salespersons
to provide good service such as product information since they are contacting the
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consumers directly. The cost of education couldn’t be considered monetary and timely
loss.

Backstroma Kristina & Johansson Ulf (2006), through their study on “Creating and
consuming experiences in retail store environments: Comparing retailer and
consumer perspectives” examined the substance of contentions around an affair situated
economy and experience-looking for utilization in retailing. The retailers all indicated the
way that consideration on in store "encounters" have expanded. With one exemption, they
all accentuated expanding endeavors to make encounters for purchasers.

They additionally concurred that the business sector requests an expanded affair
introduction, as rivalry increments and buyers are more centered around enthusiastic sides
of shopping today. The retailers additionally respected an alluring store environment a
key perspective to succeed as an affair arranged firm. The outcomes call attention to that
retailers' utilization always propelled strategies with a specific end goal to make
convincing in-store encounters to their purchasers. Conversely, the delineation given by
shoppers uncovers that their in-store encounters to a substantial degree are constituted by
conventional values, for example, the conduct of the work force, an acceptable choice of
items and a design that encourages the store visit.

Anic. Ivan-Damir and Sonja Radas (2006) in their study on “The Consumer In-Store
Purchasing Behaviour Associated with Deal-Proneness for a Hypermarket Retailer
in Croatia” presumed that most buyers are somewhat more than normal inclined to
arrangements, and arrangement inclination is absolutely connected with store activity
reliability, the hypermarket high/low retailer ought to keep on incorporating arrangements
into its in-store correspondence project to draw in arrangement inclined shoppers,
alongside worth cognizant clients.

Every one of the buyers don't have the same reaction to all advancement activites,
retailers ought to consider the objective open and the best instruments to draw in them
when outlining special crusades. Utilizing publicizing and other limited time apparatuses,
retailers ought to impact purchaser acquiring conduct while they are still in the period of

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arranging. Outline and the position of in-store advancements inside the store assume an
essential part in animating shopper enthusiasm for arrangements.

Kumar, KM. Krishna (2006) studied "Consumer Perception about Promotional

Strategies Adopted By Marketers: A Study with Reference to Fast Moving
Consumer Goods in Kerala". The level of awareness about various sales promotion
strategies, their attractiveness to consumers and their effectiveness in creating brand
awareness, trial purchase, repeat purchase and brand loyalty were some of the issues
addressed. The data were collected from 300 consumers from different parts of the state.
Various mathematical and statistical tools were used for anlysing the data including Chi-
square test, t-test, ANOVA and Duncan test.

According to the findings of the study consumers belonging to different categories are
very much aware of the various sales promotional strategies adopted by marketers.
Further, of the different tools used for sales promotion, price-offs and gifts and
complements are most attractive to consumers. Moreover, for creating brand awareness,
trial purchase, repeat purchase and brand loyalty, gifts and complements, free samples,
price-offs and premium offer respectively are the best tools suggested.

Research by Barnett et al., (2006) on “Corporate identity-image-reputation”

recommends that stores with great store picture make consumer loyalty which thus
prompts store faithfulness. Store picture can be characterized as the way that customers
see the store, i.e. their impression or view of the store The corporate picture of the store is
characterized as a mix of the store as a brand, and the determination of store brands and
maker brands offered by the store.

Liu Sandra S., Melara Robert, & Arangarasan Raj (2007) studied “The Effects of
Store Layout on Consumer Buying Behavioral Parameters with Visual Technology”
in which the scientists inspect the impacts of diverse store design on sign recognition
insights, which consider both proposed buys (hits) and unintended buys (false alerts), and
give free measures of the extent to which a customer meets their shopping objective
(affectability) and their strictness or impulsivity in making buys (reaction predisposition).

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Fifty-seven subjects from Purdue University collaborated with a virtual domain displayed
on a market to discover and select things from a remembered shopping list under a period
limit. Estimations were made of the members' navigational way, an ideal opportunity to
reach and look the focused on store for the predetermined things, and the exactness (both
hits and bogus cautions) of the determinations. Members were then studied by survey on
shopping inspirations and shopping propensities.

The investigations demonstrate that those hedonic customers that appreciate scanning in a
store have an expanded inclination to make impromptu buys. Hence, the study exhibits
that the real propensities for these customers compare with their self-evaluated
inspirations, reflecting either a remiss or strict measure in buy choices. Besides, it was
found that hedonic customers are less exact by and large in appropriately finding focused
on things. This can be clarified by the reported contrasts in shopping approaches in the
middle of hedonic and utilitarian customers: the recent are viewed as more assignment
arranged and tend to concentrate on discovering a particular item (Dawson et al, 1990).

Yingjiao Xu (2007) in his study on “Impact of Store Environment on Adult

Generation Y Consumers Impulse Buying” studies the impact of store environments on
the impulse buying behaviours of adult Generation Y consumers. Retailers are known not
store situations in a way that will improve buyers' certain sentiments, under the
presumption this will prompt sought purchaser practices, for example, a higher readiness
to buy or stay in the store for more. The significance of store environment in improving
the shopping encounters of purchasers has been portrayed in the study. In this research,
pleasure has a significant influence on impulse buying by adult Generation Y consumers,
no significant relationship can be found between arousal and impulse buying.

In the results of this study, a split-group analysis by perceived time pressure shows that
when the consumer does not experience time pressure, there is a significant and positive
relationship between arousal and impulse buying; the environment-induced arousal level
enhances impulse buying by adult Generation Y consumers. This suggests that the
relationship between the level of arousal and impulse buying is moderated by an
individual’s shopping situation. This result provides support for promotional activities
that attempt to stimulate consumers’ levels of arousal as a way to enhance their tendency
to buy items on impulse.

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Andrew .j. Newmen and peter Cullen (2007) in his book “Retail Environment and
Operation” defines merchandiser as one who targets the right people, with right
merchandise at the right time in the right place. The right people are retail customer’s one
wish to target. The right place means that the store must have a suitable quantity of floor
space and appropriate merchandise for the area it is located in.

According to him, when we think about the task of merchandising a retail store we tend to
forget about all the efforts required in choosing and sourcing the products and services
displayed. Merchandising is not just about laying out items on shelves. It is concerned
with the planning, sourcing, buying and arranging of these products and services. So one
can say that the term ‘Merchandising’ is used to describe many aspects of the planning
and presenting of stock. It also refers to the intermediate stages, which the products pass
through from the original source to the end consumers. These stages are: Planning,
sourcing, buying, arranging, displaying and space management of products or services. It
is coordination of these and other functions that make for a successful retail business.
Merchandising is necessary for most types of product and services.

Rajagopal (2008) through his study “Point-of-sales promotions and buying

stimulation in retail stores” reasoned that purpose of-offers special projects have turned
into the main instrument of retailing with a specific end goal to procure new clients and
hold faithful clients. It was additionally found that dependable clients are pulled in to the
store brands amid the limited time offers while new customers are value touchy and are
pulled in by the in-store vibe of offers advancements and volume rebates. The study
concentrated on the purchasing conduct of clients in reference to the point-of-offers
advancements offered by retailing firms and the determinants of affectability towards
fortifying shopping excitement and fulfillment among clients with a specific end goal to
manufacture store dedication in Mexico.

Retailing firms endeavor to impact the launching so as to purchase conduct of clients

appealing special crusades and presenting changes in their value arrangements, among
different activities. Periodical value rebates offered by the retailers apply a more
prominent impact on the store-brand decision over the non-store-brand inclinations. The
sort of advancement and the level of retailer predominance, on the other hand, have

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noteworthy consequences for the volume of offers, getting new clients and supporting
client steadfastness.

The study uncover that purpose of-offers advancements essentially invigorate the
purchasing conduct among clients towards impulsive purchasing that is driven by the
elements of the shrouded trepidation of not getting such deal later on, item appeal and in-
store shopping excitement. It has likewise been seen in the study that clients build up a
higher inclination for store brands, improved use esteem and rehash purchasing conduct
through a hands-on experience of the item.

Singh D. (2008) in this article “Art and Science of Visual Merchandising”, had
discussed about a mini survey done by NIFT Delhi, whose objective was to find out how
visual merchandising impacts attitude, perception, motivation, learning and memory
psychology of a consumer. 38 customers were interviewed in New Delhi. The findings of
this survey where 67% of women go to shop with a pre decided product in mind and out
of that 70% do come out with that specific product plus some additional products or
something totally different. And in the case of males 33% do that as they are motivated
from the window display.

According to the survey 84% people like displays on mannequins due to aesthetics
reasons, out of which 55% people engage in impulse buying. He further adds that 53%
consumers are always attracted by the window displays. 91% people like music inside the
store and 63% people buy because of the impact of lights, 84% say signages are helpful
inside the store. Finally 78% remember the store name where window displays attracted
them the most.

He concluded by stating that store vibes such as store exterior, window displays, store
layouts, mannequins, lighting, music etc can be used to stimulate the bodily senses
resulting in sensation of the sensory enjoyment and visual merchandising is directly
related to sensation, sensation is directly related to enjoyment , enjoyment is directly
related to values of customer, which are directly related to satisfaction, satisfaction is
directly related to retention of customers and which is directly related to the profit of the
store, and hence visual merchandising is directly related to the profit of the store.

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Scott Peter and Walker James (2008) through their research work on “Advertising,
promotion, and the competitive advantage of interwar UK department stores”,
recommended that Promotional movement gives key to the accomplishment of retail
chains in fighting off rivalry from the drawing so as to grow chain stores in clients to their
extensive, focal, premises. Publicizing, direct mailings show, and special occasions are
utilized progressively to engraving an unmistakable brand picture in the psyches of the
devouring open, which would be engaging the business sector fragments which they
focused on and would separate them from their rivals.

On the other hand, in spite of an in number general relationship between limited time
spending and net edge, there was no single, deterministic, course to this objective. Indeed,
even the unlucky deficiency of publicizing and dismissal of "current" window show
systems could be viably used to engraving a brand picture of value products at low costs
on the brains of their clients and subsequently effectively separate themselves from their
rivals.

Long Martin (2008) in his research on “Promotional Effectiveness –The Changing

Dynamics of Marketing Promotions in FMCG” inferred that in the current antagonistic
monetary atmosphere, which is unprecedented in late history, makers and retailers are
being gone up against with some excruciating substances around the present viability of
their limited time exercises. Accordingly in the serious corruption of shopper certainty,
advertisers, classification and brand administrators are finding that the kind of
advancements that have served them well before, are no more as successful.

Promoting blend displaying, guaging, value driver reporting and different other
econometric systems have been utilized as a part of the preparing of tremendous volumes
of information to create effective bits of knowledge in backing of vital and strategic
choices. They have given the fundamental supporting of "go to market" methodologies
for advancements and evaluating procedure for the most recent decade and a half.
Presently we need to confront the way that as a business approach, these may be less
powerful than we would wish in such an unstable customer business sector. Like never
before, greatness in normal business administration is key – the need to boost each
customer association is more prominent than any time in recent memory through; New
Product Development, Merchandising, In-store execution, Promotions and Media.

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A research by Jinfeng, W. and Zhi long, T. (2008 ) on “The impact of selected store
image dimensions on retailer equity” demonstrated the beneficial outcome of store
picture measurements, for example, comfort, saw cost, physical offices, worker
administration, and institutional elements on retailer value measurements as precursors of
retailer value. Store picture influences buy goals in a roundabout way, by decreasing saw
hazard and expanding Store brand quality observations.

A study by Andrea Groeppel-Klein & Benedikt Bartmann (2008), on “Anti-

Clockwise or Clockwise? The Impact of Store Layout on the Process of Orientation
in a Discount Store” demonstrates that inserting spatial data (i.e. learning of the area of
items) in the customer's brain is a key element for retailing achievement. The
psychological methodology of natural brain research tries to decide how people see and
recall situations. The premise for this capacity is intellectual (or mental) maps put away in
purchasers' recollections. How precisely left and right halves of the globe cooperate in
comprehending spatial errand has not yet been completely determined (Kukolja,
Marshall, and Fink 2006) however neurological examination recommends the estimation
of further dissecting the pertinence of subjective maps. The present study concentrates on
exploring a portion of the ways experts accept mental maps can be enhanced and the
simplicity of introduction improved in retail situations.

The consequence of the studies uncovers that managing bearing and item area are in
charge of enhancing mental maps and shopping effectiveness. In this study, we took a
gander at customers' travel and seek designs (Titus and Everett 1995; Larson, Bradlow,
and Fader 2005). In the event that the clockwise format is truly better than the
anticlockwise design then customers ought to take shorter separations to discover the
items in such a setup.

Mahesh Babaria and Mittal Dharod (2009), in a study on “FMCG sector” states that
India's FMCG division is the fourth biggest part in the economy and makes vocation for
more than three million individuals in downstream exercises. Its essential constituents are
Household Care, Personal Care and Food & Beverages. The aggregate FMCG business is
more than Rs. 85,000 Crores. It is right now developing at twofold digit development rate
and is required to keep up a high development rate. FMCG Industry is portrayed by an

105
entrenched dispersion system, low infiltration levels, low working expense, lower per
capita utilization and extreme rivalry between the composed and chaotic sections.

Mariri Tendai and Chipunza Crispen (2009) through their work on “In-store
shopping environment and impulsive buying” research the relationship between the in-
store shopping environment and rash purchasing, the study criticized that the in-store
shopping environment has an impact on indiscreet purchasing among buyers. Coupons
and vouchers, store presentation, notices and advancements, practices of shop staff and in
addition cost were the main huge determinants of imprudent purchasing among the
variables explored. The study highlighted the key significance of utilizing the as a part of
store environment to fortify imprudent purchasing choice among customers to build deals
and benefit.

Rawal (2009) has linked advertising to the impulsive buying in their study “Driving
impulse purchase with POP advertising”. As indicated by the study a promoting
method which lives up to expectations at the last buy is known as purpose of procurement
(POP) publicizing. Through POP publicizing advertisers highlight their item's vicinity,
subsequently drawing client's consideration. Such store promoting is intended to pull in
the client and purchase the item. The study affirms that utilizing POP show helps as a part
of expanding the deal. Computerized signage, film, intelligent stands, plasma TV screen,
and electronic messages glimmering even on entryways are probably the most widely
recognized patterns which start incautious obtaining of items in a store.

According to Gupta et al (2009), in “Impact of store size on impulse purchases”,

sorted out retail locations are outlined in such a way, to the point that they speak to the
customers for making drive buys thus motivation buying propensity are expanding among
the shoppers with an expanding in composed retailing. These days even a portion of the
mother and-pop stores (Kirana stores) are being composed with delicate music and
tranquil environment which apel to clients feeling.

Enormous stores are very open and well fit to pull in motivation buys from a client. An
unmistakable reason is that clients can pick the items themselves in these stores
contrasted with sorted out retail locations, customary stores are less fit for pulling in
motivation buys because of no course of action of store like general store and the vendor

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satisfies the client's request instead of permitting them to pick their craved result of their
decision.

A study by Gandhi and chawla (2009) on “what drives customer choice of retail
store”, stresses the significance of relationship or solace level with the retailer concerning
supermarkets. As indicated by the study, the customers might want to lessen travel time
while making grocert FMCG buy. On the other hand, if customers have been purchasing
from a specific store for a more extended period to time they don't mid purchasing from a
store situated at a more noteworthy separation in such case they search for the verity in
stores.

Amid the study the creators have watched that stores, offering great costs and rebates are
gone by routinely by customers where as are additionally worried about the nature of
item. A decent show of the items with the goal that clients can feel and touch the item
additionally impact the clients buying choice.

According to Tendai and Crispen (2009) in their study on “In-store shopping

environment and impulsive buying” in store advertising action, for example, purpose of
procurement showcase and advancement, alongside mood melodies and strong store work
force are all instruments of in store shopping environment. They help in both in urging
the client to purchase the item furthermore to spend a greater amount of other accessible
items. In store advancement are generally gone for diving more profound into the client's
motivation at the season of procurement. In spite of the fact that empowering incautious
(impromptu) buys. The study was completed with the goal to research the relationship
between in store shopping environment and imprudent purchasing and buyers.

The outcome demonstrates that coupons and vouchers, store showcase, ad and
advancements, conduct of shop staff and in addition cost were the main huge
determinants of implusing purchasing conduct in a retail outlet. Along these lines the in
store shopping environment has an impact on rash purchasing among customers. Further
components with an environmental engagement impact like music, crisp fragrance and
ventilation may have just been imperative in serving to keep customers longer in shops,
despite the fact that they were unrealistic to straightforwardly impact hasty purchasing.

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Tanmay Chattopadhyay (2009) in his study on “Determinants of brand equity - A
blue print for building strong brand: A study of automobile segment in India”
investigates the relationship between showcasing blend components as likewise
components not straightforwardly identified with advertising blend and brand value in
circumstances where there are vulnerabilities of brand qualities. The creators investigate
various times car purchasers in India. Direct showcasing blend variables like value,
appropriation force, store picture, publicizing recurrence, value advancement were
considered, while roundabout advertising blend variables like nation of cause, associate
suggestion and VIP supports have additionally been considered here. Brand value has
been characterized as quality saw by the shoppers for a brand.

It was found that there are essential and auxiliary prompts influencing brand value. While
essential prompts independently influence the brand value, optional signs do as such in
conjunction with essential signals. Be that as it may, alone, auxiliary prompts have no
effect on brand value essentially. Henceforth, in the study it is scolded that store picture
impact brand value, brand picture is shaped through instantaneousness and adequacy of
affiliate administration as a measure of his store picture.

The study by Kamath (2009) has been focused on the major attributes of the retail
store as perceived by the consumers in selecting a retail outlet Mangalore city. The
study discovered six main considerations that purchasers incline toward while selecting a
retail location. These elements incorporate shopping knowledge, entrainment and gaming
offices, advancement, rebate, add on office and administrations, mixed bag of items and
different variables for shopping accommodation. The finish of their study underpins the
past by Amirani & Gates (1993) on "An ascribe tied down conjoint way to deal with
measure store picture", which uncovers that the shopper will picked the same store for the
greater part of their buys on the off chance that they are fulfilled by the offices and
administration gave at the store.

Chandon. Pierre, Hutchinson. J.Wesley, Bradlow. Eric, & Young Scott H (2009), has
carried out the study on “Does In-Store Marketing Work? Effects of the Number and
Position of Shelf Facings on Brand Attention and Evaluation at the Point of
Purchase”. The study establish that except for reliability, singular variables don't assume
a directing part of the viability of store advancements. Whatever is the level of inclusion,

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the degree of data pursuit, or the idealness of the demeanor towards advancement, all
clients will be receptive to store level advancements, and likely it doesn't oblige spending
additional than spending plan. Advertisers are redirecting a developing extent of their
special spending plans from conventional out-of-store media promoting to in-store
adopting so as to show, and retailers are reacting progressively modern rack
administration and gathering of people estimation instruments.

Rosiers Francois Des, Theriault Marius & Lavoie Catherine (2009) has studied the
“Retail Concentration and shopping center rents – a comparison of two cities”, the
creators points fundamentally at testing whether, and to what degree, retail fixation inside
local and super-provincial strip malls influence rent levels, and also the differential effect
it might apply for different merchandise classes and sub-classifications and in distinctive
urban settings. Discoveries propose that while, general, intra class retail focus influences
base lease adversely, the extent and, in the long run, heading of the effect fluctuates
relying upon the way of the action and the business sector flow that win for the
classification considered.

Bapna M. (2010) in her article “Window shopping” had mentioned that window display
is the face of a shop and no retailer can afford to ignore the power of effective window
display, because the front façade of any store is the first point of contact of the customers
with the store. She also stated that merchandise display with a theme running across the
glass, mannequins dressed in various adornments, colorful signage etc. add vibrancy to
the store entrance, and the store entrance speaks about what the store sells. The front
window is the calling card.

The whole look and feel of the window actually shapes up the customer’s impression
about the store and its merchandise. The writer further states that the intention of creating
the whole façade is not to attract customer and encourage them to walk into the store, it is
also about inducing them buy from the store. Window display is one of the important
components of visual merchandising and it acts as a catalyst to generate sales.

A retailer has a time span of 15-20 sec to attract the customer as he passes the store
window; hence the focus has to remain largely on theme, perfect lighting and visual effect
and props and also the merchandise to make customer stop and take notice. Therefore

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Retailers are using new technological methods to improve displays with innovations like
3D effect, laser shows, props, live human displays etc.

Kumar, Ishwar, Garg, Ruchi & Rahman, Zillur (2010) researched on the “Influence
of Retail Atmospherics on Customer Value in an Emerging Market Condition” in
which they examines the cognitive influences of atmospherics on customer value, store
image, and patronage intentions in an emerging market condition. The discoveries of this
study propose that retail clients give more prominent worth to olfactory and material
components, for example, cooling office, encompassing aroma, and relieving
atmospherics.

Outline variables, for example, window dressing, rack courses of action and shows,
structural planning, and so forth., ought not be overlooked. Thusly, it is prescribed that
notwithstanding when the score is in the worthy extent, there is still opportunity to get
better. Passing on an aggressive store picture to clients is a testing errand; yet to guarantee
consumer loyalty, retailers need to take financially savvy measures to intermittently
change these critical elements.

In spite of the fact that publicizing and other special exercises are essential in imparting
brand esteem, the atmospherics have long haul impact in light of the fact that they make
an enduring impact on the purchasers' aggregate cognizance. The clients in a developing
market, for example, India reported errors between quality experienced and expected
worth (hedonic and utilitarian) because of vagueness in the part of components in making
suitable condition of excitement (enthusiastic request).

According to the study of Metha et al. (2010), on “customers Response towards In-
store Retail Communication”, in-store correspondence is utilized more to teach and
advise the costumers. It helps the costumers to invest less energy while buying their item
and improve their shopping knowledge. Costumers should be educated and coordinated
are satisfied by the retailers with the assistance of in store special devices. The creator has
done a study on costumer reaction towards In-store Retail Communication and has
demonstrated that in-store retail correspondence is an extremely successful apparatus and
aides in making deal. The elements which bolster the most to the study are data on blurbs,
weekend offers, celebration time festivity and offers, rebate, correspondence with deal
individual and unique offers on buy.
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According to MVA research (2010), on “Sales Promotion Tools in Retail Sector in
Hongkong and Beijing”, deals advancement assumes an imperative part for delivering
fast and fleeting deals. Clients are constantly pulled in by different cost related
advancement apparatuses, for example, markdown, reward pack, free premium and free
specimen. At grocery store coupons, purchase one get one free offer and direct cost of are
additionally famous among customers.

From the review it was found that immediate markdown is the most favored limited time
apparatus by the shoppers and impacts the deals at an abnormal state. Aside from direct
rebate reward pack and purchase one get one free offer are likewise famous limited time
device at grocery store.

Samuel, Smitha (2011) in her article “Colourful influence” had put down the views of
many visual merchandisers regarding the importance of color in the display and design.
As per Nagaraja R , Director- Design Four Dimensions (4D) , he states that “ Color plays
A Vital role in creating the ambience required in relation to both the product and the
brand. It emotionally makes the customer indulge in the theme set, and absorb him/her
into it. Moreover, colors attract as well as have the power to make a customer spend that
extra little time in the store”.

He also adds that color creates the signature of the brand and store identity. It also
reflects the attitude and character of the store. As per Sanjay Agarwal, Director FRDC
also shares the same opinion related to color, he says that “Color is a powerful sensory
tool influencing and impressing consumers and viewers senses. It creates an everlasting
impression in one’s mind. Color in branding creates attractiveness, a pause effect,
emotional connect, excitement, loyalty, guides eye movement and is a mood enhancer”.

Rose (2011) in the article “Effective in-store display programs begin with a sign ware
placement strategy” had described the effective sign ware or signage in the store leads to
sales as more than 70% of purchasing decisions are made by customers once they are in
store. Therefore in-store marketing is more critical in retail successes. As consumers rely
heavily upon in-store product and promotion in making their purchase decisions, an
effective in-store marketing program can contribute very directly to retail success.

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According to the writer a well thought out plan for in-store signage will attract customers,
direct them to where they want to go, alert them to special promotions and help them
evaluate the merchandise. The writer mentions that window merchandise displays
complements by signage clearly conveys the store image, product image and draws the
customers in, informs and excite shoppers. She concludes by stating that signage at the
check-out will inspire customers to make last minute impulse purchase and will leave
positive impression that will bring them back.

Anurag S, Swati Bhalla (2011) in this article “why is music played in malls and
shops” had elaborated about the science of shopping, which is music. According to him
shopping is not just acquisition of goods and services, but also gives the shopper a sensual
pleasure, a sense of involvement, a romance with the items and the surroundings and a
feel good factor. This explains the reason why non cognitive processes like the ambience,
the color, the aisle, the shelving, the music, lighting, texture are equally important than
cognitive dimensions.

According to the writer sound enhances a stores environment and it can be used as a
mood setter, an attention grabber and an informer and it can be used in retail stores to
promote buying, to set stage for particular shopping theme or to remind consumers of a
special holiday or season. The background music played in the malls and shops help in
psychological profiling or involuntary behavioral modification of the customers.

Asha Sindhu (2011) in her study on “Sales Promotion Strategy of Selected Companies
of FMCG Sector in Gujarat Region” has berated that the items which clients purchase
regularly are shower cleansers, shampoos, sustenance items and tooth glues where as
marked refreshments are slightest obtained. Among the different deals advancement
methodology utilized by organizations commercial and deals advancements routines draw
in more clients and individual offering is the slightest system that pulls in clients. The
goal of offers advancements plans are to build deals, push up deals in off season, expand
offers of items out of interest and kill culmination impact. The organizations intrigued to
offer deals advancements advantages are positioned as HLL initially, Nestle second,
Colgate third and P&G fourth.

Beristain, Jose Juan & Zorrilla, Pilar (2011) has carried out a study on “The
relationship between store image and store brand equity: A conceptual framework
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and evidence from hypermarkets” which reviles that Retailers are attempting
significant endeavors to enhance their image administration .The test they confront, then
again, is the way best to incorporate soundly their stores, as brands, and their different
wholesaler brands (store brands, private labels, etc.), so as to build their image value and
offer the business sector differential esteem that will invigorate client steadfastness. From
this point of view, it is urgent for retailers to research the relationship between the store
and their own particular brands.

This study proposes two hypothetical models demonstrating the instrument where by
store picture helps build the value of a particular sort of merchant brand (the store brand).
The experimental examination made in the hypermarket area in the Basque territory of
Gipuzkoa backs most of the proposed speculations. The outcomes demonstrate that store
picture can be utilized by retailers to impact all segments of store brand value, basically
through its business and key measurement. This examination is expected to address the
unmistakable absence of exploration on store brand value.

According to the study of Anuradha Reddy (2011), “Impact of Effective Billboard

Designs in today’s Environment”, billboard advertising is a standout amongst the best
intends to spread the message among the costumers. This special apparatus mindful the
buyer as well as improve organization's image picture. Further the study recommends that
advertisers can use bulletins for indoor and outside publicizing. It can likewise be utilized
as a part of retail locations to mindful the costumers about item elements and limited time
offers.

Hemraj Verma and Dr. Pankaj Madan (2011), in a study on “Factor Analyzing The
Store Attributes To Identify Key Components Of Store Image (A Study On Some
Selected Apparel Stores In India)” figures out that Store's Product and Operational
Quality is the most imperative element deciding Overall Image has been apparent from
the discoveries that Specialty stores like Bharati Sarees, Madame, Ganga Sagar, Hokaba
and Branded franchisee Stores, for example, Levi's are seen conveying high picture by the
clients for giving quality along high operational quality. The second-most essential
variable i.e. Stores Overall Visual Appeal (speaking to Store presentations conveying
Information, Store Layout, Display of materials, Store's outside and inside appearance)

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excessively has been discovered, making it impossible to have a sizable effect on Store's
Image.

According to the study of Dursun, Inci, tümer kabadayi. Ebru, koçak alan. Alev, &
sezen. Bülent (2011) on “Store Brand Purchase Intention: Effects of Risk, Quality,
Familiarity and Store Brand Shelf Space” examines the integrative impacts of saw
quality, saw danger, nature and rack space portion on store brand buy goal to give a broad
learning with respect to figures on which retailers ought to center to get the vital game
changers of Store Brand.

Vaishnani, Haresh B (2011) in his study on “Effects of sales promotions on

consumer preferences and brand equity perception: with specific reference to
FMCG products” berated that pay is one of the variables which ought to be considered
while planning deals advancement plots all the more particularly money markdown.
There is noteworthy distinction between buyer inclination of money rebate and free
blessing as deals advancement plans. It is additionally clear that buyers lean toward
money markdown as a business advancement plans contrast with free blessing as a
business advancement plan.

It is observed that Consumer arrangement inclination contrasts as indicated by conjugal

status. Besides, it is likewise demonstrated that wedded are more arrangement inclined
contrast with Unmarried. Added to it Brand Equity recognition varies as per occupation
classifications. It is reasoned that male favors the daily paper and purpose of procurement
material as a source to know deals advancement plans over female. newline Overall,
Sales advancement plan on universal brand, mindfulness spread out by listening in on
others' conversations, Scheme is worth included sort with quick advantage is favored by
the clients.

Don E. Schultz and Martin P. Block (2011) have examined the “U.S. consumer views
of how in-store promotion works” This study takes an all encompassing, buyer reported
perspective of how U.S. shoppers consider and use in-store advancement, media and
advertising exercises. Included are buyer’s sees on how different limited time exercises
are utilized, which are said to have the most impact on their buy choices. How In-Store
advancement functions from both the advertiser and retailer view, it is an unpredictable
blend of outer to-the-store and what happens or is accessible inside the store.
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In a study by J. Beneke, E. Adams, O. Demetriou & R. Solomons in (2011) “An
Exploratory study of the relationship between store image, trust, satisfaction and
loyalty in a franchise setting” the parts of store picture, trust and fulfillment were
examined to focus the dedication of South African customers to establishment stores. As
indicated by experimental discoveries, purchasers see establishment stores to have a
superior store picture than corporate-claimed stores.

Predictable with past writing, the normal purchaser who frequented establishment stores
reported more elevated amounts of client administration. On the other hand, it was found
that the normal customer sees establishment stores to offer a littler general mixture of
items than corporate-possessed stores. Moreover, store picture was found to have positive
direct associations with both trust and fulfilment.

Khare Arpita (2011) researched on “Mall shopping behaviour of Indian small town
consumers” in a Tier II city in India. The examination target was to comprehend the
shopping center shopping conduct of a residential community customer who has not had
(or had constrained) access to sorted out retail organizes and has been usual to shopping
in conventional retail arranges. The interest in shopping centres in these urban areas is
sure to change the way of life of a normal residential community customer in India.
Indian retail part has been ruled for a considerable length of time by the customary
chaotic retail organize which are run and oversaw by families. The buyers in the little
urban communities of India don't have pay levels as the metropolitan city buyers. The
neighbourhood retailers stock items as indicated by their inclinations as well as furnish
them with credit offices, shopping help, have locational comfort, and give redid
administrations. Shopping centres would need to confront a firm rivalry from the nearby
retailers in little urban communities.

The buyers are pulled in to the shopping centres due to its feeling, prevalent offices, and
assortment of stores yet would they be willing to buy items from shopping centres? That
is the primary inquiry. The way of life of the residential community customer is not quite
the same as that of greater urban areas. The vast majority of the general population can't
spend substantial measure of cash on marked items or excitement offered at the shopping
centres. The low discretionary cash flow of the white collar class families does not

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empower them to spend extensive measure of cash on silver screen theatres and
sustenance courts of the shopping centres.

It can be seen from the outcomes that the more youthful era (matured somewhere around
20 and 30 years) visits shopping centres for diversion, recreational, social, and
investigation variables. The shopping centres are outlets for social parties, investing
energy with dear companions and particularly for Indian youth having the capacity to go
out on the town. The shopping centres present buyers with indifferent spaces, which help
them in losing all sense of direction in the group. The Indian youth is confined by family
values and customs, and shopping centres give them roads where they can securely meet
their young lady/beaus without the family getting to be mindful of it.

Vasanth Kiran, Mousumi Majumdar and Krishna Kishore (2012) in their study
“Innovation in In-Store Promotions: Effects on Consumer Purchase Decision” states
that because of the lack of time and progression in mechanical and strategical
developments, it gets to be inescapable for the retailer to concoct different better
approaches for advancing. Retailers open in-store media (ISM) and permit makers to
publicize to customers.

With a useful and simple to-utilize retail encounter, customers are engaged to get to a
wide assortment of ongoing item data including valuing, area, accessibility,
accommodating guidance, focused on advancements and all the more right in the
walkway, without sitting tight for a store partner. This improved self-administration gives
clients the best of both universes — the moment data access in a web based online store
and the key material experience of shopping in the block and mortar store

Sakshi Modi & Tapasya Jhulka (2012) through their work on “Impact of Promotional
Schemes on Buying Decisions of a Consumer” examined that the improvement of
coherent speculation among the buyers is one of the essential parts of human conduct.
This system portrays choices for the producers and advertisers to meet the developing
purchaser requests. An endeavor has been made to analyze the five limited time plots
specifically Exchange Offer, Special Gift, Festival Season Offers, Contest Prizes, Product
Warranties which influence the vehicles purchasing conduct of the buyer. It is found that
special plans have real ramifications on buying choice. Advertisers can utilize the mix of
important special plans as a successful apparatus for offering their items.
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In a study by Wei-Lin Hsieh and Mei-Jen Huang (2013) on “Marketing strategies for
building the brand image of table tennis paddles”, researched past writing dialogs,
building up the significance of brand picture and the techniques in which organizations
utilization to offer table tennis oars. The outcomes showed that first; the brand picture
may upgrade the item quality acknowledgment and enhance negative pictures. Likewise,
if the brand picture is better, the shopper is more prone to have an uplifting state of mind
towards the nature of the item and in addition advance purchaser steadfastness. Second,
the quality of the brand picture genuinely can impact the buyer item quality awareness.

Third, the using so as to advert method for the brand picture a model may set up novel
brand attributes and in light of the advancement, the thing turns out to be understood and
has item esteem which lets the customer have the open door and the enthusiasm to buy
the item. Fourth, the different showcasing techniques must be brought together so as to
elevate the shopper's wish to buy the thing being referred to. This will happen if (1)
expert competitors bolster the item; (2) there is brand development relationship; (3) media
advertising leads the brand connection; (4) they use the SWOT investigation; (5) there is
a promoting method blend.

Eluiza Alberto de Morais Watanabe (2013) conducted a study on “Store Image

Attributes and Customer Satisfaction in Supermarkets In Campo Grande-Ms” to
explore the relationship between picture properties and shopper fulfillment in grocery
stores the study presumed that the picture characteristics of the general stores can be
separated into five elements: work force, item, value, environment and advancements and
amongst them "environment" and "advancements" were not viewed as huge in deciding
fulfillment, while the traits "personell", "item" and "cost" had a beneficial outcome on
fulfillment, with the recent having the best effect.

In a study by Koul, Surabhi & Mishra, Hari Govind (2013) on “Customer

perceptions for store attributes: a study of traditional Retail stores in India”, it was
castigated that Indian retail market is unequivocally determined by the disorderly
(Traditional store) retail locations. The reason for the study to manage the significance of
store properties in a chaotic retail situation. The general client profile effectively mirrors
that the clients going by the sloppy store typically visit it for the buy of basic need items.
Besides such clients don't set out much to visit the retail location. According to the

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reactions got store characteristics have a solid association with the client recognitions in
disorderly markets. Rebates demonstrated the most grounded connection, item variety and
item accessibility additionally demonstrated a just as solid association with client
recognitions.

The outcomes mirror that the retailers in sloppy markets need to take into account clients
who are more value touchy and get pulled in towards the rebates being offered to them.
Additionally, ordinarily significance is given to the item collection in the store and the
accessibility of the coveted merchandise of the clients. The indicator tests uncovers that
the client buying basic supply and customer sturdy merchandise underline more on store
properties instead of if there should be an occurrence of physicist or restorative item
classification.

The outcomes additionally demonstrate that the clients acquiring basic supply items
underscore on store qualities like item collection, item accessibility and retailer's
demeanour. Additionally the significance of distinctive store characteristics differs with
item classifications. Retailers in sloppy markets managing diverse classes ought to
underscore on distinctive store properties relying on the sort of clients he manages.
Another essential after affect of the study is the directing impact of the "separation set out
by the client to achieve the store" on the client observations.

The outcomes underlined that aside from the retailer's state of mind and alternate
administrations all other store traits demonstrated a critical connection with client
observations when directed with the separation voyaged. These finding emphatically
underline that when a client lean towards certain store properties he even ventures long
separations to buy that item. This likewise mirrors the store faithfulness element of a
client. All these when kept under thought can unquestionably meet client desires and
subsequently make him a client steadfast.

Ms Suman Si and Ms Mansi Kapoor (2014), in a study on “Impact of Branding

Strategies on Consumer Buying Behavior in FMCD Industry” says that Branding is
one such perspective which additionally impacts the shoppers purchasing conduct
consequently likewise affecting the feelings and impression of the customers. Advertising
has turned out to be to a greater degree a client arranged movement. This client
introduction has offered ascent to expand worth being given to the brand techniques
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which would fulfill the customers by giving the brand that they crave for. Brand is in this
way the connection between the business and its customers. A business may get the
patent rights for the brand however the shoppers are the person who will characterize the
brand by encountering it.

Advertising issue improving from the purchasers' conduct has a more prominent level of
closeness behavioral issues identifying with the customer durables. The customer conduct
in identifying with purchaser durables is firmly influenced by some monetary, social,
social and mental elements; the present examination has been chosen for an escalated
experimental overview of the different components affecting the purchaser's conduct on
shopper durables. It has been found that a powerful marking technique leaves an enduring
impression in the psyches of the purchaser and helping them to settle on the right
decision.

Gunaseelan, Rupa & Chitra, R. (2014) in a study titled “Customer’s expectation

towards shopping behaviour in retail outlets” talked about that store ascribes are
critical to buyers when they settle on the choice where to shop. Store properties are
introduced by retailers as indicated by their particular useful systems. Store traits must be
offered that are craved by the focused on shopper. The test to retailers is to figure out
which store properties are moderately more essential to the focused on purchaser. Giving
fitting store credits is insufficient to fulfil purchasers and ensure store devotion.

Keeping up the nature of these traits is the hardest undertaking and basic to survival in the
aggressive way of style retailing. The present study is distinguishing the store
characteristics which impact the clients for shopping conduct. The retail fragments chose
for this study were nourishment and basic supply, array, gems and buyer durables and
home machines. Further from the discoveries it can be said that retail location director's
learning on the clients shopping conduct tends to undertaking focused. As it were the
administrators need to comprehend the clients shopping conduct, what are the variables
impacting them to buy an item, how to hold the clients in long range and purchase more.

In this manner, retail outlet directors ought to animate hedonic shopping inspiration with
a specific end goal to impact customers to stay longer and purchase more. This requires
situating methodologies and focusing on a moderately little market with an additional
spotlight on hedonic inspirations, for example, energy, stimulation, dream and fun.
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In a study by Shrivastava, Mithun, Saini, Navdeep & Pinto, Arvind (2014) on
“Customer perception towards effectiveness of floor advertisements in organized
retail” it is observed that commercials assume a noteworthy part in customer choice
making identified with items/administrations. Actually, the client recognition gets
impacted in distinctive routes in changing degree because of publicizing boosts displayed
by advertisers, particularly in the setting of large number of promoting apparatuses and
strategies connected by sorted out retail segment in the space of purpose of procurement
promotions.

One such procedure that picked up consideration of stores and/or hypermarkets is the
utilization of floor commercials. This study is maybe a lady endeavour in Oman's sorted
out retail part and endeavours to explore/look at client discernment towards viability of
floor advertisements utilized as a part of composed retail outlets. For the said reason,
essential information was gathered by overseeing organized undisguised poll amongst
100 respondents in Oman.

The effect of select variables which are relied upon to contribute fundamentally to floor-
advertisement viability, viz.; floor-commercial review, floor-notice enticement,
disposition towards floor-promotion, and floor-notice allure has been analyzed. Further,
the effect of floor-commercial viability on clients' buy goal and also on his/her statement
of mouth goal has likewise been analyzed. Auxiliary mathematical statement
demonstrating taking into account incomplete slightest square technique was utilized to
decide way coefficients in the proposed basic model.

Taking into account the discoveries, it could be reasoned that all connections analyzed
according to proposed auxiliary model were observed to be critical at 95% certainty level,
with the exception of the relationship demonstrating effect of floor-advertisement review
on floor-commercial adequacy.

Haslinda Hashim, Siti Rahayu Hussin and Nurdiyana Nadihah Zainal (2014)
conducted a study on “Exploring Islamic Retailer Store Attributes from Consumers
Perspectives: An Empirical Investigation” which reviled that Muslim buyers saw that
retailer's needs particular worth loaded credits to be considered as Islamic. These
elements are Trustworthy Pricing, Conforming Atmosphere, Trustworthy Products and in
addition Ethical Promotion. Other than item properties, a retailer needs to create other just
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as vital qualities, for example, store climate, advancement and valuing techniques that
consent and grasp the Islamic morals of leading business.

The study additionally shows that it is not adequate for an Islamic retailer to give just an
agreeable and clean store environment. It is germane for Islamic retailers to give a
Confirming Atmosphere. Qualities, for example, promotion with Islamic components,
Islamic signage and Halal logos too offices in light of sexual orientation, are among the
unmistakable signals that would give confirmation to Muslim buyers that they are
disparaging an Islamic store.

Store promotion and brand image are now a day’s much debated and researched topics at
the managerial as well as academic level. The review of available literature shows that
various aspects of store promotion have been studied from different dimensions. These
studies are done from the perspectives of manufacturer, retailer and consumer of fast
moving consumer goods, addressing the planning, implementation and control functions
related to promotion management. Though all of the important tools of store promotion
have been subject to research, couponing can be singled out as the most favourite tool of
researchers.

Another important point emerged from the review is that majority of the studies are
conducted in developed nations. A very few studies were also done in India. Considering
the size and potentials of Indian markets, the studies conducted here are insufficient and
inconclusive. A study on the level of attractiveness and usage of various store promotion
tools and their effect on brand image of fast moving consumer goods in the context of
India in general shall provide valuable information to the managers of companies,
especially FMCG companies, where store promotion is very common.

In a study by Knego Nikola, Petljak Kristina & Vouk Rudolf (2014) “Location and
Layout as Sources of Competitive Advantage of Small Retailers” stated that retail
achievement is fixed to retail store on the grounds that great areas permit prepared get to
and pull in vast quantities of clients to the store. The distinction between selecting the
wrong and the right area can be the contrast between business disappointment and
achievement. Area choice making is liable to dependably stay both a "craftsmanship" and
"science".

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Little retailers can survive and even flourish, in the event that they stay adaptable and
give their own regard for serving client's needs. Notwithstanding settling on choices about
item, value, advancement and client benefits, the little retailer creates systems concerning
spatial potential outcomes of store area. In leading physical stores, retailers consider four
parts of physical limit: area, size, shape and design. The encompassing populace, activity
and cost figure out where to find a store. Size alludes to the aggregate store square
footage and the state of the outside and inside appearance. Design alludes to the measure
of space allotted to distinctive lines of items, item particular areas and spatial format
arrangement show.

An astutely picked area can offer retailers to assemble an upper hand some assistance
with considering the way that a few retailers still pick their area on premonition. It is
important to embrace research keeping in mind the end goal to decide the commitment of
interest in every area to making retail benefit, with the goal that it doesn't happen that a
little funds in speculation will prompt a huge misfortune in turnover. Truth be told, retail
locations ought to be found where market opportunities are at an ideal level.

A study by Singh Priyanka, Katiyar, & Verma Gaurav (2014) on “Retail

Shoppability: The Impact of Store Atmospherics & Store Layout on Consumer
Buying Patterns” reviles that all store atmospheric factors, have critical effect on client
approach practices. Requesting from high to low as indicated by the degree of effect, the
elements are configuration elements, impalpable elements, picture of administration work
force, visual jolt and picture of different clients. This uncovers the outline component of a
store is the greatest environment consider that effects client approach practices; its energy
of impact and understanding are fundamentally higher than different variables.

Clients give careful consideration to the outlining in a store, including whether the format
and general structure is sensible, how is the inside embellishment, whether the signs and
stamps are clear, whether the showcase of wares in hallway space, ware data and order is
finished and helpful.

Impalpable components and picture of administration staff, that is, music, commotion,
room temperature, attire and state of mind of administration faculty and so forth are
additionally considered by clients as basic elements that will impact their behaviours. All
the previously stated variables have fundamentally positive relationship with client
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approach practices, showing that client practices in hypermarkets are for the most part
influenced by the earth figures that have greatest pertinence with merchandise. At long
last, this study proposes particular recommendations and measures of how to make a
wonderful store air and advantageous store design in retail location to elevate retail
shoppability as indicated by after effects of observational investigations.

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 CHAPTER 3 – OBJECTIVES and HYPOTHESIS

3.1 Objectives:

 To study the awareness about store promotion in FMCG products among sample
respondent.
 To study the impact of each store promotion tool in building brand image of a FMCG
product.
 To study the impact of demographic variables like gender, age, qualification and
occupation towards store promotional tool.
 To study the overall impact of store promotional tools on consumer buying decision in
FMCG products.

3.2 Hypothesis Framed:

Ho1- The perception of different age group towards store promotion tools in buying Fast
moving consumer goods does not differ significantly.

Ho2-.The perception of male and female towards store promotion tools in buying Fast
moving consumer goods does not differ significantly.

Ho3- Income does not play a significant role in choosing Fast moving consumer goods on the
basis of store promotional tools.

Ho4- Qualification does not play a significant role in choosing Fast moving consumer goods
on the basis of store promotional tools.

Ho5- Marital Status does not play a significant role in choosing Fast moving consumer goods
on the basis of store promotional tools.

Ho6- Occupation does not play a significant role in choosing Fast moving consumer goods
on the basis of store promotional tools.

Ho7- The frequency of Fast moving consumer goods purchase does not depend on store
promotion tools.

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Ho8- The purchase of Fast moving consumer goods does not depend on the influence of any
marketing strategies.

Ho9- Awareness about store promotional tools does not affect choice of Fast moving
consumer goods.

Ho10- Brand Image of products does not affect purchase of Fast moving consumer goods.

Ho11- Store promotional strategies do not affect the purchase of Fast moving consumer
goods.

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 CHAPTER 4 - RESEARCH METHODOLOGY

4. Introduction:

Research methodology is a systematic way to solve a problem. It is a science of studying how

research is to be carried out. Essentially, the procedures by which researchers go about their
work of describing, explaining and predicting phenomena are called research methodology. It
is also defined as the study of methods by which knowledge is gained. Its aim is to give the
work plan of research.

4.1 Research design:

A research design is based on a framework and provides a direction to the investigation being
conducted in the most efficient manner. It is the structure that has been created to seek
answers to research questions. On the other hand, research method is the technique to collect
the information required.

A research design is not just a work plan. A work arrangement points of interest what must be
done to finish the task however the work arrangement will spill out of the undertaking's
exploration plan. The capacity of an exploration outline is to guarantee that the proof got
empowers us to answer the beginning inquiry as unambiguously as could reasonably be
expected. Acquiring important proof involves indicating the kind of confirmation expected to
answer the examination inquiry, to test a hypothesis, to assess a system or to precisely depict
some marvel.

The aim of the study is to find out the various store promotional tools used by marketer to
promote FMCG products and also to understand the significance of these tools in creating
brand image and helping the customer to prefer a suitable brand and also the marketer to
choose such in store promotional tool which can help in customer retention.

The methodological approach to this study was a combination of exploratory and descriptive
in nature as it covers data from secondary sources which are taken in introduction and
literature review of the study.

Exploratory research designs are the easiest and most approximately organized outlines. As
the name recommends, the essential goal of the study is to investigate and get clarity about

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the issue circumstance. It is adaptable in its methodology and for the most part includes a
subjective investigation. Exploratory designs, as stated earlier, are the simplest and most
loosely structured designs. As the name suggests, the basic objective of the study is to
explore and obtain clarity about the problem situation. it is flexible in its approach and mostly
involves a qualitative.

Descriptive research is also called statistical research. The descriptive research is aimed at the
definition of the competitive structure of a market / segment, or the description of the
behavior of organizations or groups of consumers. The main goal of this type of research is to
describe the data and characteristics about what is being studied. The research objectives in
descriptive research are generally describing the characteristics of consumer segment viz.
demographic socioeconomic, geographic, psychographic and benefits sought.

Despite the emphasis on description it should not be concluded that the studies should be
simply fact-gathering expeditions. They can also be used to make predictions about the
occurrence of a marketing phenomenon. The data regarding the presence of an association
among variables can only be used for productive purposes but statements regarding cause and
effect relationships are not possible with descriptive research.

4.1.1 The Study:

The study is focused on finding out the various marketing strategies used by the
marketer to create its brand image and also to study impact of store promotion in
creating brand image of FMCG product in India. The study also finds out the overall
impact of in store promotion on consumer buying decision. The study is based on the
primary data, for which 549 respondents were approached.

4.1.2 Sample Design:

4.1.2.a Population:
Population refers to any group of people or objects that form the subject of
study in a particular survey and are similar in one or more ways.
4.1.2.b Sample:
Sampling is the detailed process of identifying units such as individuals,
companies etc. from a particular population of interest for the study so that by
studying that particular selected sample it may rationally generalize the
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results back to the selected population from which the sample was taken. A
sample is a subset of the population taken for the study. Sampling helps in
choosing a sufficient number of items from the selected population so that the
study of the sample will help in understanding the features of the population
and will also enable to generalize the results. It includes only some elements
of the population. Sample can also be the sub group of population selected for
the participation in the study. It is a part of total population.
4.1.2.c Sampling Unit:
A sampling unit is a single member of the sample. For the present study
sampling unit is 549, comprising of sample respondents from different cities
of India, which are:
 Bhopal
 Mumbai
 Delhi
 Goa
 Dehradun
 Gwalior
 Indore
 Bangalore
 Hyderabad
 Pune

4.1.2.d Sample Size:

The size of sample depends upon the basic characteristic of the population,
the type of information required from the survey and the cost involved. The
sample size taken is be comprised of 549 respondents from the above
mentioned cites belonging to different age group of 20-35 years, 35-50 years,
and 50 yrs and above, different qualification and income level. This
constitutes the sampling frame of the present study.

4.1.2.e Sampling Technique:

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 The technique used for sampling is non probability convenience sampling,
which refers to that method of sample selection in which members of the
population are chosen based on their relative ease of access and where the
researchers can choose the respondent as per his own convenience.

Convenience sampling is commonly used in exploratory research purpose of

an exploratory research is to gain an insight into the problem and generate a
set of hypotheses which could be tested with the help of a conclusive
research. When very little is known about the subject, a small scale
convenience sampling can be of use in the exploratory work to help
understand the range of variability of responses in a subject area.

4.1.3 Tools for Data Collection:

Primary data as the name suggests is original, problem- or project-specific and
collected the specific objectives and needs spelt out by the researcher. The
authenticity and relevance is reasonably high. The monetary and resource
implications of this are quite high and sometimes a researcher might not have
the resources or the time or both to go ahead this method. In this case, the
researcher can look at alternative sources of data which are economical and
authentic enough to take the study forward.

Primary data was collected through Structured Questionnaire which was

designed to meet the objectives of the study. The questionnaire comprised of
three parts. The first part of the questionnaire deals with demographic
variables of the sample respondents like age, gender, occupation, marital
status and level of income. The demographic variables used in the
questionnaire are: Age (20-35 years, 35-50 years, and 50 yrs and above),
Gender, Income, Occupation, Marital status and Qualification. Part A of the
questionnaire deals with the awareness of respondents towards marketing
strategies used by marketers of Fast Moving Consumer Goods to promote
their products and the influence of store promotion strategies in building
brand image of Fast Moving Consumer Goods.

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Part B consists of the store promotional strategies used by marketers in
promoting FMCG product in their Store outlets. store promotional discussed
in the questionnaire are Attractive product display in a store Special discount
and Cash discounts offered in a store, Gifts, Free Items or Prizes (contests,
sweepstakes, games) offered at stores, Layouts, Signage and Floor
advertisement, Store Television display, Store radio, Background music,
Vouchers/coupons, Shop Congestion / Shop Density and Cleanliness,
Behaviour of Sales People, Store Atmosphere, Store fragrances and Parking
Space.

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 CHAPTER 5 – DATA ANALYSIS TECHNIQUES

5. Introduction:
Data analysis is the method of evaluating data by the use of various analytical and
logical reasoning to examine each component of the data provided. Data analytics is
the science of examining raw data with the purpose of drawing conclusions about that
information. After collection of data from the sample respondents, different statistical
tests were used to analyze the data.
The data analysis was done by using software package for statistical analysis. Package
for Social Sciences (SPSS) is one of the most popular software packages to perform
statistical analysis on survey data. Its first version was released in 1968 and since
then, it has come a long way. It is used by researchers, educational Institutes, research
organizations, government, marketing firms etc.
In this software the data of 549 sample respondents was collected .This data was
properly coded and edited. Duly filled questionnaires were considered for final data
analysis and the incomplete questionnaires were rejected. The collected data is
analyzed by using the following techniques:

5.1. Reliability statistics:

Reliability is the degree to which a test consistently measures whatever it measures.

Errors of measurement that affect reliability are accidental mistakes and mistakes
errors of measurement that affect validity are systematic or constant errors. It
indicates score variation that occurs from testing session to testing session as a result
of errors of measurement. The reliability of the instrument is tested by using
Cronbach alpha method.

Cronbach's alpha is used as a measure of internal consistency, i.e. it tests how closely
related a set of items are as a group. It is considered to be a measure of scale for
reliability. Cronbach's alpha coefficient ranges in value from 0 to 1 and are be used to
describe the reliability of factors extracted from dichotomous and/or multi-point
formatted questionnaires or scales. The higher the score, the more reliable the
generated scale is. It is an index of reliability associated with the variation accounted

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for by the true score of the "underlying construct." Construct is the hypothetical
variable that is being measured (Hatcher, 1994).

5.2. Frequency distribution:

Frequency distributions are visual displays that organise and present frequency count
so that the data can be interpreted more easily. It is a mathematical distribution whose
objective is to obtain a count of the number of responses associated with different
values of one variable and to express the counts in percentage terms. It helps to
determine the extent of item non response and also the extent of illegitimate
responses.

A frequency distribution of data can be represented in a table or graph. Some common

methods of showing frequency distributions include frequency tables, histograms or
bar charts.

5.3. Regression:

Regression analysis is a statistical tool for the analysis of relationships between the
variables. It includes many techniques for modelling and analysing several variables,
when the attention is on the relationship between a dependent variable and one or
more independent variables.

Regression analysis could be used for a variety of purposes in research. It could be

used to test whether an overall relationship exists between the dependent variable and
a set of Independent variables. It can also be used to measure the comparative
importance of various independent variables in explaining the dependent variable.

The other use of regression analysis is for a prediction of the values of dependent
variable, that is, knowing the values of the independent variables one can predict the
values of the dependent variable. A variable is an object, event, idea, feeling, time
period, or any other type of group which is to be measured. There are two types of
variables-independent and dependent. An independent variable is a variable that stand
alone and isn't changed by the other variables you are trying to measure where as a
dependent variable is the variable that depends on other factors. Independent variable

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causes a change in Dependent Variable and it isn't possible that Dependent Variable
could cause a change in Independent Variable.

For the present study dependent is the Purchase decision of FMCG and independent
variables taken are Parking space, Gifts, Special Discount, Behaviour of sales person,
Store radio, Attractive product display, Store fragrances, Vouchers, Shop congestion,
Background music, Store television, Layouts, Store Atmosphere.

5.4. Chi-square test:

The chi-square statistic compares the observed frequency in each table cell to the
frequency which would be expected under the assumption of no association between
the row and column classifications. The chi-square statistic may be used to test the
hypothesis of no association between two or more groups, populations, or criteria.

Chi-square is a statistical test commonly used to compare observed data with data we
would expect to obtain according to a specific hypothesis. It also helps in knowing the
"goodness to fit" between the observed and expected. A goodness of fit test is a
statistical test of how well the observed data supports the assumption about the
distribution of a population. The test also examines that how well an assumed
distribution fits the data. The deviations (differences between observed and expected)
the result of chance, or were they due to other factors can also be identified using this
test. The chi-square test is always testing what scientists call the null hypothesis,
which states that there is no significant difference between the expected and observed
result.

5.5 ANOVA:

Analysis of variance (ANOVA) developed by R. A. Fisher is a collection of statistical

models utilized as a part of request to examine the contrasts between gathering
implies and their associated procedures (such as "variation" among and between
groups). The purpose of analysis of variance (ANOVA) is to test for significant
differences between means.

In case of more than two populations, the test for the equality of means could be
carried out by considering two populations at a time by using the analysis of variance

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(ANOVA) technique. Through this technique it is possible to draw inferences whether
the sample have been drawn from populaces having the same mean. The procedure
has discovered applications in the fields of financial matters, brain research, human
science, business and industry. It becomes handy in situations where we want to
compare the means of more than two populations. The technique of ANOVA
becomes handy as it helps to compare the differences among the means of all the
populations simultaneously.

R A Fisher developed the theory concerning ANOVA. The basic principle underlying
the technique is that the total variation in the dependent variable is broken into two
parts—one which can be attributed to some specific causes and the other that may be
attributed to chance. The one which is ascribed to the particular reasons is known as
the variety in the middle of tests and the one which is credited to risk is termed as the
variety inside of tests. Along these lines, in ANOVA, the aggregate variance may be
decomposed into various components corresponding to the sources of the variation.

5.6 One-Sample Kolmogorov-Smirnov Test:

The One sample Kolmogorov-Smirnov test (KS-test) tries to verify if two datasets
vary significantly. The KS-test has the advantage of making no assumption about the
distribution of data. It is a non-parametric test distribution free. Like the chi-square
goodness of fit test, the Kolmogorov-Smirnov one-sample test assesses the degree to
which an observed pattern of categorical frequencies differs from the pattern that
would be expected on the null hypothesis.

One sample Kolmogorov-Smirnov test is used to test whether a sample comes from a
specific distribution. We can use this procedure to determine whether a sample comes
from a population which is normally distributed.

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 CHAPTER 6 - FINDINGS and DISCUSSION
The analysis focuses on fulfilling various objectives formed during the study such as to assess
the overall impact of store promotional tools on consumer buying decision and also to study
the impact and awareness of various promotional tool among the respondents. Thus to fulfil
the objectives formed the collected data from the respondents is analysed by using different
statistical tests. The findings along with the discussion of the data analysis is as follows:

Firstly the reliability of the entire research instrument which is constructed to meet the
objectives of the present study is calculated by using cronbach alpha. The results of which are
mentioned as under:

Table 6.1: Case Processing Summary

N %
Valid 549 100.0
Total 549 100.0
a. Listwise deletion based on all
variables in the procedure.

For the purpose of this study 549 respondent were approached to accomplish the various
objectives formed for the study.

Table 6.2: Reliability Statistics

Cronbach's Alpha N of Items

.982 73

Reliability test: The reliability of the instrument is tested by using Cronbach alpha method.
The number of items taken in the present study are 73 and their reliability is coming to be 0
.982.As this value is closer to 1 , thus it may be said that the reliability of the instrument used
in the research is good and acceptable and the data could be further analyzed.

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The part A of the questionnaire dealing with demographic information of the sample
respondents was analyzed by using frequency distribution and Chi- Square test after
formulating hypothesis associated with the demographic variable including age, gender,
income, qualification, marital status, occupation and store promotion tools. The results
of the same are mentioned as follows:

Figure 6.1: Frequency distribution by Age

From the above figure 6.1, it can be noted that out of the total respondents 297 belongs to age
group 20-35 i.e. the young generation where as 162 respondents belonging to age group 35-
50 and only 90 respondents belonged to age group 50 and above. Thus it may be interpreted
that store promotion tools effect the preference of young generation i.e. 20-30 years of age to
the greatest extent.

With the trend of shopping shifting to retail stores which is altogether new experience of
shopping, every individual prefers to purchase various products under one roof only. The
young generation is more interested to know the latest trends and changes in the market, thus
they are more inclined to know the store culture and also respond to the promotional offers
which are provided by the marketer in a store. They are also more proactive in their shopping
136
behaviour and patterns.Their shopping is majorly to maintain social status among peer group
hence anything that is new and attractive with a catchy promotional offer attract them and
they tend to get influential towards it. They are ready to experimental with new products and
never hesitate to try them.
Figure 6.2: Frequency distribution by Gender

The above figure describes about the frequency disyribution by gender out of the total
respondents the contribution from male population is more in comparison to the females. It
can be noted form the above figure 6.2 that 351 response have been made by males where as
female respondents were 198 only. Thus it may be interpreted that male population have
more intrest towards the marketing startegies used by marketer in various stores.

Now a days Males are more intrested in knowing the offeres in the market. They will shop for
daily products after visiting many stores and wouldlike to purchase a products which has
attractive offers attached to it rather than a product with a shining packaging. Males have a
tendency to purchase a product which has the same value as the money paid for it. For
example females would prefer to visit a store with seprate parking facility for them, good

137
music and fragrance but males will go for stores having good dicount, rebates and cash back
offers.

Figure 6.3: Frequency distribution by Income

The above figure 6.3 shows the income of respondents which includes low income group i.e.
upto 1 lakh, Medium income group i.e. 1- 3 lakh and high income group i.e. above 3 lakh.
Out of the total respondents 288 belong to low income group, 117 belongs to medium income
group and 144 is from high income group.

After analysing the data it may be concluded that the low income group is most effected by
various marketing startegy used by companies for selling fast moving consumer goods as
their purchase decision is based on necessity. As for a person who is earning Rs. 1 lakh it is
very important that each and every penney is spent rightly and on right things. Therefore with
the help of retail stores they get a chance to explore and choose amongst the various available
options. They also get attracted towards various promotional tools available in the store in
order to get best of all options such as they may shop on days with maxium discounts so that
they can save more. For example big bazar has launched a promotional offer as “Maha bachat
shanivar”

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 Figure 6.4: Frequency distribution by Qualification

The above figure 6.4 denotes the qualification of the respondent among which the graduate
are 216 of the total respondent, where as post graduate respondents are 333 of the total
population which tells that the highly qualified segment is more aware and responsive
towards promotional tools and marketing techniques used by the marketer in the store while
purchasing FMCG products. The respondent belonging to post graduate segment are more
attentative towards the promotional strategies. They observe the surroundings in a store and
according to various offers and discount purchase the fast moving consumer goods.

High literacy level creates a high level of awarness among individual. They tend to study
each and every thing happening in their surrounding environment. Thus when they enter a
retail store they pay attention to all the sinage, floor advertisment, announcement made on
radio so that they can avail benefit of the available offers at a retail store.

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 Figure 6.5: Frequency distribution by Marital Status

Figure 6.5 represents the marital status of the respondent among which the respondents
belonging to married segment are 171 of the total respondent and 378 were from unmarried
segment. Thus it may be interpreted that the bachelors or the unmarried customers are more
attracted towards the promotional tools used in store while purchasing FMCG products.

The below mentioned figure 6.6 shows the occupation of the respondents which includes
students, service, business and housewifes. Out of total respondents 225 are students, 216
belong to service class, 81 run there own business and 27 are housewife, thus it may be
concluded that students are more responsive towards store promotional tools while
purchasing FMCG products form a store. They purchase products which are on offers and do
not hesitate in trying new products and also respond to all the promotional tools used in a
store in a positive manner.

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 Figure 6.6: Frequency distribution by Occupation

The results of the Chi- Square test applied on the data after formulating hypothesis are
presented as follows

Table 6.3: Chi-Square Test

Age Gender Income Qualification Marital Occupation

group status

Chi-Square 120.689a 42.639b 92.361a 24.934b 78.049b 212.902c

Df 2 1 2 1 1 3

Asymptotic .000 .000 .000 .000 .000 .000

Significance .

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 183.0.

b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 274.5.

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 c. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 137.3.

Ho1- The perception of different age group towards store promotion tools in buying
Fast moving consumer goods does not differ significantly.

The Chi-Square value of age group is coming to be 120.69 at degree of freedom 2 and
Asymptotic Significance Value is .000. As this value is less than .05, in the light of this Null
hypotheses namely, “The perception of different age group towards store promotion tools in
buying fast moving consumer goods does not differ significantly” is rejected thus it may be
interpreted that different age group people think in a different manner and their response
towards buying FMCG products varies whit respect to the different store promotion strategies
used by marketer. A person belonging to age group of 20-35 years will definitely respond
differently than a person who belongs to age group 35-50. Perception of people belonging to
different age group differs due to their experiences and needs.

Ho2-.The perception of male and female towards store promotion tools in buying Fast
moving consumer goods does not differ significantly.

The Chi-Square value of age group is coming to be 42.639 at degree of freedom 1 and
Asymptotic Significance Value is .000. As this value is less than .05, in the light of this Null
hypotheses namely, “The perception of male and female towards store promotion tools in
buying Fast moving consumer goods does not differ significantly” is rejected thus it may be
interpreted that perception of male and female towards store promotion tools in buying Fast
moving consumer goods is different.

The thinking process of male and females are totally different. Their perception towards store
promotion differs significantly basically because of their upbringing and values. Females on
one side are attracted to products with attractive packaging where as males on the other side
will purchase a product which has discount or cash back offer.

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Ho3- Income does not play a significant role in choosing Fast moving consumer goods
on the basis of store promotional tools.

The Chi-Square value of Income is coming to be 92.361 at degree of freedom 2 and

Asymptotic Significance Value is .000. As this value is less than .05, in the light of this Null
hypotheses namely, “Income does not play a significant role in choosing Fast moving
consumer goods on the basis of store promotional tools” is rejected thus it may be interpreted
that Income play a significant role in choosing Fast moving consumer goods on the basis of
store promotional tools.

Money is a very important tool in everybody’s life. Thus while purchasing fast moving
consumer goods income of the consumer plays an important role as the consumer with
limited source of income are more attracted towards promotional tools such as discounts, free
gifts, vouchers etc. The customers who cannot afford to spend more wait for offers to
purchase some products and are active in knowing about various store promotion strategies.

Ho4- Qualification does not play a significant role in choosing Fast moving consumer
goods on the basis of store promotional tools.

The Chi-Square value of Qualification is coming to be 24.934 at degree of freedom 1 and

Asymptotic Significance Value is .000. As this value is less than .05, in the light of this Null
hypotheses namely, “Qualification does not play a significant role in choosing Fast moving
consumer goods on the basis of store promotional tools” is rejected thus it may be interpreted
that Qualification play a significant role in choosing Fast moving consumer goods on the
basis of store promotional tools. Qualified individuals pay more attention to the promotional
offers as they are more aware about the recent trends in market. After entering a store they
spend carefully after analysing all the option available and choose right product at right price.

Ho5- Marital Status does not play a significant role in choosing Fast moving consumer
goods on the basis of store promotional tools.

The Chi-Square value of Marital Status is coming to be 78.049 at degree of freedom 1 and
Asymptotic Significance Value is .000. As this value is less than .05, in the light of this Null
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hypotheses namely, “Marital Status does not play a significant role in choosing Fast moving
consumer goods on the basis of store promotional tools” is rejected thus it may be interpreted
that the preference of married and unmarried people in choosing Fast moving consumer
goods on the basis of store promotional tools is different due to the change in their
responsibilities.

The unmarried customers do not have much responsibilities attached where as married
customers have a lot of responsibilities, thus they react accordingly to various store
promotional strategies. Their preferences differ to a great extent, for example unmarried
customers will purchase the products which are available on huge discounts irrespective of
them being new or old in the market where as married customers will specifically purchase
products of their choice which might not have huge discount available on them.

Ho6- Occupation does not play a significant role in choosing Fast moving consumer
goods on the basis of store promotional tools.

The Chi-Square value of Occupation is coming to be 212.902 at degree of freedom 3 and

Asymptotic Significance Value is .000. As this value is less than .05, in the light of this Null
hypotheses namely, “Occupation does not play a significant role in choosing Fast moving
consumer goods on the basis of store promotional tools” is rejected thus it may be interpreted
that Occupation play a significant role in choosing Fast moving consumer goods on the basis
of store promotional tools.

Student, house wife, businessman and service class people respond in different manner to the
promotional tools while purchasing fast moving consumer good. They act according to their
profession. For example a person belonging to service class may tend to save more by
purchasing products available on discounts, a businessman may take advice of salesperson or
follow the commercials being told on store radio while purchasing product where as a house
wife may purchase product which have attractive product display or have free gift with them.

The section A of the questionnaire which included questions related to awareness and
usage of store promotion strategies was analysed by using frequency distribution and
One-Sample Kolmogorov-Smirnov Test. The results are discussed below:
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 Figure 6.7: Frequency distribution by Purchase Pattern

The above figure represents the pattern of purchase of fast moving consumer goods from
store by the respondents. Out of the total respondents 288 purchase fast moving consumer
goods from store as and when need arises, 126 respondent purchase on monthly basis, 99
respondent purchase in 15 days and only 36 respondent purchase fast moving consumer
goods from store on weekly basis.

The reason for the finding could be that FMCG includes all those product which involves low
investment and are required on regular basis, hence the customer do not purchase such
products in bulk rather they prefer to buy the products as and when need arises. Some
respondents also purchase these products monthly or in 15 days where as the least preferred
option is on weekly basis. Another reason can be that in today’s busy environment no
individual has time to visit a retail store regularly thus they purchase a product whenever the
need arises or even monthly.

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 Figure 6.8: Frequency distribution by level of Influence

The above figure describes about the influence of marketing strategies used by the marketer
to promote the product while consumer purchases fast moving consumer goods. Out of the
total respondents 360 gets influence with various marketing strategies used to sell fast
moving consumer goods and rest 189 do not get influenced with marketing strategies while
purchasing fast moving consumer goods from stores.

With the increase in number of companies in FMCG sector the number of options available
with the customer in every segment is increasing. It is difficult of the customers to choose
one among them, here comes the role of marketing strategies in picture. The products which
are promoted more are likely to have more sales because customers get attracted to them.

Marketing not only promote the product it also makes customer aware and satisfy about the
product feature. The companies who market their product effectively have more sales
revenue than others. For instance a marketer displays a newly launched product using floor
display or billboards all over the store, this attracts customer’s attention and that might result
in actual purchase. Thus to sell any FMCG product the marketer need to use different
marketing strategy which ultimately helps to attract the customer leading to increased sales.

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 Figure 6.9: Frequency distribution by level of Awareness

From figure it is observed that the 414 number of respondents are aware where as 135
respondents are unaware about different in store promotional tools used by the marketer for
selling FMCG product. This is due to the increased literacy level and awareness among the
sample respondent. Thus the focus of marketer must be on making all the people aware about
store promotional strategies. More and more people should be made aware about store
promotional tools so that they can benefit with them.

Awareness can be created by using hoardings of the various offers available in the store or
advertisement can be given in newspaper so that more and more consumers can be made
aware about store promotional tools.
More over sales executive can be trained in a manner so that they inform all the customers
about various offers prevailing in the store where as announcements can also be made on
store radio about the offers.

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 Figure 6.10: Frequency distribution by Influence of Brand Image

From the above mentioned figure 6.10 it is observed that the 414 number of respondents
purchase a product due to its brand image where as 135 respondents do not purchase a
product due to its brand image. This brand image can be the result of different sales
promotion tools used by the marketer while selling FMCG in stores.

The role and impact of branding and its integral aspects of packaging, pricing, promotion and
quality will be interrogated to establish how these variables contribute towards this
convergence of perceptions which determines the brand equity of fast moving consumer
goods. Evidently, the turnover generated from the sales of fast moving consumer goods forms
a significant portion of all sales generated by retail chain stores.

Building an image of the product in the minds of customer requires a lot of effort and once
that image is created the customer will become loyal towards the brand. Thus the marketer
must focus on creating a strong brand image so that it can help in increasing the customer
base.

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 Figure 6.11: Frequency distribution by Influence of Store Promotion Strategies

From the above figure it can be interpreted that the 396 number of respondents purchase a
product due to influence of store promotion strategies where as 153 respondents do not get
influence by the of store promotion strategies. Thus it can be interpreted that store promotion
strategies play a significant role in building customers preference while purchasing FMCG
products.

Almost all the respondents purchase fast moving consumer good due to the influence of store
promotional tools, but more efforts should be paid to the remaining 153 customers. There can
be various means by which the customers can be influenced by store promotion tool. For
example customers can be provided with pamphlets at the entrance of store describing about
all the promotional offers available at the stores or there can be announcement made at store
radio and commercials can be show on store television to educate the customers about
various promotional tools.

For the study various hypotheses were formed and were tested using One-Sample
Kolmogorov-Smirnov Test the results are as follows:

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 Table 6.4: One-Sample Kolmogorov-Smirnov Test
Frequency Influence of Awareness Brand Store
of marketing Image promotional
Purchase strategies strategies

N 549 549 549 549 549

Mean 3.21 1.34 1.25 1.25 1.28
Normal Parametersa,b Std. .961 .476 .431 .431 .449
Deviation
Absolute .318 .421 .470 .470 .454
Most Extreme
Positive .206 .421 .470 .470 .454
Differences
Negative -.318 -.260 -.284 -.284 -.267
Kolmogorov-Smirnov Z 7.455 9.868 11.011 11.011 10.638
Asymptotic Significance (2-tailed) .000 .000 .000 .000 .000
a. Test distribution is Normal.
b. Calculated from data.

Ho7- The frequency of Fast moving consumer goods purchase does not depend on store
promotion tools.

The output shows an N of 549 and a Mean of 3.21. It also shows an Asymptotic Significance
(2-tailed) value of .000 (this is also known as the p value). The p-value is less than .05
therefore Null hypotheses namely, “The frequency of Fast moving consumer goods purchase
does not depend on store promotion tools” is rejected thus it may be interpreted that the store
promotional tools motivate a person to buy Fast moving consumer goods.

Gifts, discount, attractive product display, store radio, store radio and many more
promotional strategies force the customers to visit stores again and also motivate them to
purchase fast moving consumer goods from the store. Promotional offers such as buy two get
two free, buy a family pack and get assured gifts etc forces customers to purchase more
product than actually required. Once the customer enters a store, the responsibility of selling
the product lies on the marketer.

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Ho8- The purchase of Fast moving consumer goods does not depend on the influence of
any marketing strategies.

The output shows an N of 549 and a Mean of 1.34. It also shows an Asymptotic Significance
(2-tailed) value of .000 (this is also known as the p value). The p-value is less than .05
therefore Null hypotheses namely, “The purchase of Fast moving consumer goods purchase
does not depend on the influence of any marketing strategies” is rejected thus it may be
interpreted that the purchase of Fast moving consumer goods purchase depend on the
influence of marketing strategies used by the marketer to sell their product.

Marketing strategies used by the companies to inform and influence customers to purchase
their products. Customers only purchase those products which are known to them which can
be done by featuring the product in an advertisement or by promoting it though a celebrity.
Attractive product display, free gifts, background music, store fragrances etc. are also used as
marketing strategies to boost sales of fast moving consumer goods.

Ho9- Awareness about store promotional tools does not affect choice of Fast moving
consumer goods.

The output shows an N of 549 and a Mean of 1.25. It also shows an Asymptotic Significance
(2-tailed) value of .000 (this is also known as the p value). The p-value is less than .05
therefore Null hypotheses namely, “Awareness about store promotional tools does not affect
choice of Fast moving consumer goods” is rejected thus it may be interpreted that awareness
about store promotional tools affect choice of Fast moving consumer goods.

Awareness about store promotional tools definitely effect the choice of fast moving
consumer goods as when the customers know about the various products available on
offer in the store they will purchase those products only. The awareness about the
store promotional tools can be created in many ways one such ways is by making
sales persons deployed on every corner of the stores so that they can inform and aware
customers about the promotional tools available in the store.

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Ho10- Brand Image of products does not affect purchase of Fast moving consumer
goods.

The output shows an N of 549 and a Mean of 1.25. It also shows an Asymptotic Significance
(2-tailed) value of .000 (this is also known as the p value). The p-value is less than .05
therefore Null hypotheses namely, “Brand Image of products does not affect purchase of Fast
moving consumer goods” is rejected thus it may be interpreted that Brand Image of products
affect purchase of Fast moving consumer goods i.e. products with good brand image are more
preferred by the customers.

In today’s competitive world where the customer is having varied choices in terms of brands,
the customer is very choosy in selecting a specific product or brand. Therefore companies
much create such an image of its product that once a customer gets attached to the brand he
or she becomes brand loyal and does not switch the brand.

Ho11- Store promotional strategies do not affect the purchase of Fast moving consumer
goods.

The output shows an N of 549 and a Mean of 1.28. It also shows an Asymptotic Significance
(2-tailed) value of .000 (this is also known as the p value). The p-value is less than .05
therefore Null hypotheses namely, “Store promotional strategies do not affect the purchase of
Fast moving consumer goods” is rejected thus it may be interpreted that Store promotional
strategies affect the purchase of Fast moving consumer goods. If the store provides good
discount, have better parking facilities, is well equipped and uses various store promotion
strategies than definitely the sale of the products will increase.

Store promotion is a marketing strategy that is meant to bring people into the store and to
purchase specific items that are part of the store promotion. These strategies most often come
directly from manufacturers, or they may be offered by the store itself. The idea is to generate
additional revenue due to the extra sales of the products involved, or even to induce a brand
switch when offered by the manufacturer. These strategies help to drive traffic into the store,
to eliminate too much stock, or to create additional revenues when sales are slumping.

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The section B of the questionnaire which is comprised of the variable indicating the
store promotional strategies in promoting FMCG products in their store outlets is
analysed by using regression. The result of the same are represented as follows.

Table 6.5: Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate
1 .946a .894 .864 7.361
a. Predictors: (Constant), Parking space, Gifts, Special Discount,
Behaviour of salesperson, Store radio, Attractive product display,
Store fragrances, Vouchers, Shop congestion, Background music,
Store television, Layouts, Store Atmosphere

The above table shows the variance explained by the predictor variables. The "R" column
represents the value of R, the multiple correlation coefficient. R can be considered to be one
measure of the quality of the prediction of the dependent variable. A value of 0.946, in the
above table, indicates a good level of prediction. The value of the correlation coefficient R
indicates that there is considerable variance between the dependent and independent
variables.

The "R Square" column represents the R2 value (also called the coefficient of determination),
which is the proportion of variance in the dependent variable that can be explained by the
independent variables (technically, it is the proportion of variation accounted for by the
regression model above and beyond the mean model). It can also be seen from our value of
0.894, that our independent variables explain 89.4% of the variability of our dependent
variable, indicating that 89.4% of the variations in the Purchase decision of FMCG are
explained by Parking space, Gifts, Special Discount, Behaviour of salesperson, Store radio,
Attractive product display, Store fragrances, Vouchers, Shop congestion, Background music,
Store television, Layouts, Store Atmosphere.

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 Table 6.6: ANOVA
Model Sum of Df Mean Square F Sig.
Squares
Regression 29.971 13 2.305 17.738 .000b
1 Residual 56.541 435 .130
Total 86.512 448
a. Dependent Variable: Purchase decision of FMCG
b. Predictors: (Constant), Parking space, Gifts, Special Discount, Behaviour of sales
person, Store radio, Attractive product display, Store fragrances, Vouchers, Shop
congestion, Background music, Store television, Layouts, Store Atmosphere

The above table shows the overall variance. This model is good fit as the significance value is
.000. Thus it can be interpreted that the 13 independent variables which are Parking space,
Gifts, Special Discount, Behaviour of salesperson, Store radio, Attractive product display,
Store fragrances, Vouchers, Shop congestion, Background music, Store television, Layouts,
Store Atmosphere can be used to predict the influence of store promotion tools while
purchasing FMCG products.

The below mentioned table explain the level of influence of various factors on the purchase
decision. Attractive product display, Special Discount, Gift, Store radio, Background music,
Shop congestion and Behaviour of salesperson have a positive influence on purchase
decision, where as Store Atmosphere, Store fragrances and Parking space negatively
influence the purchase decision.

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 Table 6.7: Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) .915 .072 12.631 .000
Attractive product .048 .009 .416 5.477 .000
display
SpecialDiscount .032 .008 .295 3.958 .000
Gifts .025 .007 .257 3.736 .000
Layouts -.059 .015 -.571 -4.088 .000
Store television -.033 .012 -.398 -2.819 .005
Store radio .092 .012 1.113 7.756 .000
1
Vouchers -.049 .008 -.528 -6.051 .000
Background music .031 .010 .395 3.155 .002
Shop congestion .057 .012 .616 4.612 .000
Behaviour of .027 .008 .290 3.368 .001
salesperson
Store Atmosphere -.052 .014 -.576 -3.831 .000
Store fragrances -.016 .009 -.193 -1.799 .073
Parking space -.026 .007 -.293 -3.631 .000
a. Dependent Variable: Purchase decision of FMCG

From the above figure it can be noted that in all the 13 factors some have positive influence
where as some has negative influence which is depicted below using bar chart.

155
 Figure 6.12: Impact of Store Promotion strategies

Among the various store promotion strategies having positive impact on purchase decision of
fast moving consumer goods announcements through store radio that refers to the
announcement of various offers in store by which the customers can know what promotional
offers are available and choose accordingly have the highest amount of impact followed by
shop congestion, attractive product display, special discount, background music, behaviour of
salesperson and the lowest impact is of gifts.

Customers prefer to visit a store that is less crowded and has no queue at the billing counter;
they also prefer those products which have attractive product display and special discount
such as 30% on first purchase 40% on second and 50% on third. Music is also very important
component as it set a mood of customer to shop. Some impact on purchase decision is also by
the behaviour of sales person and free gifts.

156
The above figure also depicts the store promotion strategies having negative impact on
purchase decision of fast moving consumer goods. The strategies included are Layouts, Store
television, Vouchers, Store Atmosphere, Store fragrances and Parking space. Out the 6
strategies least negative impact is by store fragrances, packing space and store television
whereas highest impact is of Layouts, Store Atmosphere and Vouchers. Consumers do not
prefer to visit a store where they are asked to fill various forms so that vouchers can be send
to them or the store which have strong fragrances in their store are not preferred to shop in by
the consumers.

Thus it may be concluded that shop congestion, attractive product display, special discount,
background music, behaviour of salesperson and the lowest impact is of gifts influence and
motivate a customer more to buy a particular FMCG product. Main objective of retailer is to
sell the product to the customers using various store promotional strategies. Some of the store
promotional tools have positive impact while purchasing Fast moving consumer goods and
some have negative impact.

The retailers should focus more on tools having negative impact than on tools having positive
impact as a lot of human and financial resources are involved in applying various store
promotional tools thus they need to find out the reason due to which those tools have negative
effect. Once the cause is identified than full effort should be made to improve these strategies
so that they can also help retailers to attract new and retain old customers. On the other hand
retailers at the same time must also keep introducing new and improved tools to crater to the
needs of customers depending upon their age, gender, occupation, income and marital status.

157
 CHAPTER 7 - Conclusion

In this era of globalization, market is full of FMCG companies trying to sale their product
by creating a brand image in the minds of customers. Today FMCG sector comprises of
large part of consumer’s income as fast moving consumer goods are products which are
purchased frequently and are necessary for the customers. Customers prefer to purchase
FMCG product as and when need arises by visiting an retail store according to their
convenience this gives an excellent opportunity to the retailer to attract the customers by
using various marketing strategies so that the customer purchases 4 or 5 products instead
of 1 product he actually wanted to purchase.

Customers are becoming extremely demanding with regards to the design and style of any
store they visit. They need to be pulled in and persuaded to enter a shop or slow down at a
counter and at that point of sale so as to sell the product. Leading retailing organizations
tries to form positive store image in the customers mind so that he visits the store again.
The retailers need to identify various promotional strategies which can be used to attract
consumers towards their product.

A noteworthy goal of any promotion technique for almost every fast moving consumer
good is to maintain old customers and attract new one by creating a brand through
inclination or association. Promotional tools help companies to create a brand image
which helps the company in long run and also motive customers to purchase the product
again.

The repurchase goal of shoppers can be advanced through different advertising

techniques utilized by advertiser as a part of stores, for example, Image Strategy,
Promotion Strategy, Media Marketing Strategy, Multiple Choices Strategy, Brand Slogan,
Integrate the Marketing Channels and Store advancement.

Out of the below mentioned strategy store promotion is very relevant in today’s market.
Store promotion is a marketing procedure that is intended to convey individuals into the
store and to buy particular things that are a piece of the in-store advancement.

158
 Figure 7.1: Types of Marketing Strategy

Image
Strategy

Promotion Store
Strategy Promotion

Techniques

Marketing
Strategy
Media Integrate
Marketing the
Strategy Marketing
Channels

Multiple Brand
Choices Slogan
Strategy

These methodologies regularly come straightforwardly from producers, or they may be

offered by the store itself. The thought is to create extra income because of the additional
offers of the items included, or even to incite a brand switch when offered by the
manufacturer. These strategies help to drive traffic into the store, to eliminate too much
stock, or to make extra incomes when deals are drooping. It also helps in building the
brand image and creates customers intention to buy a specific product or brand.

This strategy of store promotion is widely used by the manufacturers of FMCG products
as these are the products which are consumed by the customers frequently and regularly.
Also in case of Fast Moving Consumer Goods, large numbers of variants are available

159
which provide the marketer the scope to use such promotional strategies which can
convince the customer to purchase their products by creating brand image.

In today’s competitive world where the customer is having varied choices in terms of
brands, the customer is very choosy in selecting a specific product or brand. Hence, the
marketers have started using the concept of in store promotion to cater the immediate
needs of the customers and make them satisfied.

Thus to cater the need of marketer the study focuses on identifying various store
promotional tools used in a retail store and to study their impact on customers buying
decision with special reference to fast moving consumer segment. The study focuses on
fulfilling various objectives formed such as to assess the overall impact of store
promotional tools on consumer buying decision and also to study the impact and
awareness of various store promotional tool among the respondents. Thus to fulfil the
objectives formed the collected data from the respondents is analysed by using different
statistical tests.

For the purpose of this study 549 respondents were approached and they were asked to
fill the structured questionnaire designed for the study. The collected data from the
sample respondents is analysed by using different statistical tests such as - reliability
statistics, validity, frequency distribution, regression, chi-square test, one-sample
kolmogorov-smirnov test and ANOVA.

After analysis it was found that store promotion tools affect the preference of the
youngsters i.e. 20-35 to the greatest extent and male population have more interest
towards the marketing strategies used by marketer in various stores. The respondents
belonging to low income group, unmarried are the one most affected with the store
promotion strategy.

The study also indicate that people belonging to different age group think in a different
manner and their response towards buying FMCG products varies with respect to the
different store promotion strategies used by marketer. Thus the responsibility lies on the
shoulder of marketer that all the different age group people are attended with different
store promotion strategy. Out of the various age groups store promotion tools affect the

160
preference of the youngsters to the greatest extent. The category students are more
responsive towards store promotional tools while purchasing FMCG products.

It was also found that the perception of male and female towards store promotion tools in
buying Fast moving consumer goods is different. Male population have more interest
towards the marketing strategies used by marketer in various stores than females which
gives retailers a scope of improvement in their marketing plan. There should be more
focused marketing strategies for females so that their interest can be captured towards
various tools used to promote Fast moving consumer goods. Income, qualification,
marital status of consumer plays a significant role in choosing Fast moving consumer
goods on the basis of store promotional tools.

The low income group is most affected by various marketing strategy used by companies
for selling fast moving consumer goods as their purchase decision is based on necessity.
The highly qualified segment is more aware and responsive towards promotional tools
and marketing techniques while purchasing FMCG products therefore retailers should
focus on strategies which attract the less. The bachelors or the unmarried customers are
more attracted towards the promotional tools used in store while purchasing FMCG
products than the married customers.

FMCG includes those entire product which involves low investment and are required on
regular basis, hence the customer do not purchase such products in bulk rather they prefer
to buy the products as and when need arises. More number to respondents are aware
about the store promotional strategies, this is due to the increased literacy level and
awareness among the sample respondent. High literacy level creates a high level of
awareness among individual. They tend to study each and every thing happening in their
surrounding environment. Thus when they enter a retail store they pay attention to all the
sinage, floor advertisement, announcement made on radio so that they can avail benefit of
the available offers at a retail store.

For the present study various store promotion variables were used such as Attractive
product display in a store, Special discount and Cash discounts offered in a store, Gifts,
Free Items or Prizes (contests, sweepstakes, games) offered at stores, Layouts, Signage
and Floor advertisement, Store Television display, Store radio, Vouchers/coupons,

161
Background music, Shop Congestion / Shop Density and Cleanliness, Behaviour of Sales
People, Store fragrances, Parking Space and Location.

Store 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 or the trade. Store promotion creates a positive impact on consumer purchase
intention and form long-term relationship with the customer thus create brand image in
customers mind. Sixty percent of all in-store purchases are unplanned, according to
associate professor of marketing at Lehigh University in Bethlehem, Pennsylvania which
provide a great scope for the marketer to use in store promotional activities.

Among the various store promotion strategies having positive impact on purchase
decision of fast moving consumer goods announcements through store radio that refers to
the announcement of various offers in store by which the customers can know what
promotional offers are available and choose accordingly have the highest amount of
impact followed by shop congestion, attractive product display, special discount,
background music, behaviour of salesperson and the lowest impact is of gifts.

Customers prefer to visit a store that is less crowded and has no queue at the billing
counter; they also prefer those products which have attractive product display and special
discount such as 30% on first purchase 40% on second and 50% on third. Music is also
very important component as it set a mood of customer to shop. Some impact on purchase
decision is also by the behaviour of sales person and free gifts.

The below mentioned figure 7.2 also mentions the store promotional tools which have a
negative impact on purchase decision which are mentioned in red colour are Layouts,
Store television, Vouchers, Store Atmosphere, Store fragrances and Parking space. Out
the 6 strategies least negative impact is by store fragrances, packing space and store
television whereas highest impact is of Layouts, Store Atmosphere and Vouchers.
Consumers do not prefer to visit a store where they are asked to fill various forms so that
vouchers can be send to them or the store which have strong fragrances in their store are
not preferred to shop in by the consumers.

162
 Figure 7.2: Store Promotion Techniques and Impact on Purchase of FMCG

Attractive product
display

Special discount

Gifts

Store Television
display

Layouts

Parking space
Impact on Purchase
Store of FMCG
Promotion
Store radio

Vouchers/coupons

Background music

Behaviour of
salesperson

Store Atmosphere

Store fragrances

Shop congestion

163
Retailers are attempting significant endeavours to enhance their image administration.
The test they confront, then again, is the way best to incorporate soundly their stores, as
brands, and their different wholesaler brands (store brands, private labels, etc.), so as to
build their image value and offer the business sector differential esteem that will
invigorate client steadfastness. From this point of view, it is urgent for retailers to
research the relationship between the store and their own particular brands.

The present study deals with the impact of store promotion tools while purchasing FMGC
products, it can be concluded that store promotion tools have a great impact on the
purchase decision of FMCG products. Purchase decision of FMCG are explained by
Parking space, Gifts, Special Discount, Behaviour of salesperson, Store radio, Attractive
product display, Store fragrances, Vouchers, Shop congestion, Background music, Store
television, Layouts, Store Atmosphere.

The store promotion strategies play a significant role in building customers preference
while purchasing FMCG products. The factors which have a great influencing power in
the study include attractive product display, special discounts, background music, shop
congestion and behaviour of salesperson.

Thus it may be concluded that shop congestion, attractive product display, special
discount, background music, behaviour of salesperson and the lowest impact is of gifts
influence and motivate a customer more to buy a particular FMCG product. The store
climate assumes a vital part in pulling in new clients and holding existing ones. A client
would never buy anything from a store which is not clean. Foul smell bothers people and
in this manner they leave in a matter of moments. Play heartfelt music for a beneficial
outcome on the clients. The store ought to be sufficiently bright and ventilated for the
clients to make the most of their shopping.

Store promotional strategies affect the purchase of Fast moving consumer goods. If the
store provides good discount, have better parking facilities, is well equipped and uses
various store promotion strategies than definitely the sale of the products will increase.

The store promotional tools motivate a person to buy Fast moving consumer goods. More
people get influenced by store promotional strategy. Thus to sell any Fast moving
164
consumer goods the marketer need to use different marketing strategy which ultimately
helps to attract the customer leading to increased sales.

The purchase of Fast moving consumer goods depend on the influence of marketing
strategies used by the marketer to sell their product and Brand Image of products affect
purchase of Fast moving consumer goods. Products with good brand image are more
preferred by the customers. Retailers constantly keep making various strategies so that
every customer knows about their brand and form a positive image in their mind.

Customers do not think much before buying FMCG products if they are attracted by
packaging of a product they will purchase it. Store promotion tools generate impulse
buying behaviour and stimulate the desire to purchase the product. Using attractive
product display, unique discount offers and other combination of promotional tools attract
the customers towards a store. Customers usually buy those products which appeals to
them and here comes the task to retailers they need to make the environment appealing so
that a person who has walked in a store with a motive of window shopping can be
converted into a customer. These store promotional techniques helps the retailers to create
a brand image in the minds of customers thus increasing profit margin for the companies.
Every retailer must put a lot of effort in selecting the best suitable technique for their
retail store in order to sustain in the market.

165
 CHAPTER 8 - Scope for further Research

After studying the various store promotional strategies these are the scope for further
research:

 The sample size and the cities taken for taken for research can be increased in further
researches.

 This study undertakes the various store promotional tools used in FMCG sector,
where as for further research other sectors can be targeted such as electronics,
garments etc.

 Some other store promotional techniques can be identified which are not included in
this research and then on that basis further study can be done.

 The focus of present study is on the customer’s aspect of store promotional tool, for
future study companies aspect can also be taken in to consideration.

 The time frame used in this study can be expanded for the further research.

 Customers are aware about different in store promotional tools used by the marketer
for selling FMCG product. This is due to the increased literacy level and awareness
among the sample respondent. For further research work the section of lower income
group can be focused and their perception can be studied.

 To sell any FMCG product the marketer need to use different marketing strategy
which ultimately helps to attract the customer leading to increased sales.

166
 CHAPTER 9 – Limitations

The study had few limitations. On the basis of these limitations the scope for further
studies is suggested.

 Large number of variables were involved in study thus many of the

respondents felt it monotonous to fill the questionnaire which could lead to
responses errors in few cases. Also there were many respondents who missed
out certain information which could affect the quality of study.

 Responses were taken from some selected cities such as Bhopal, Mumbai,
Delhi, Goa, Dehradun, Gwalior, Indore, Bangalore, Hyderabad, Pune and
Chandigarh. It was not possible to cover all the cities, thus location aspect
becomes a key difficulty in achievement of what was required

 Sample size may not be exact representative of the universe. There can be a
chance of some error to a very limited extent.

 The role of retail competition, account retail tactic and various demographics
in formative promotional response are also potential issues which are not
covered in this study.

 Issues related to the effectiveness retail promotional programmes, with the

premise that the level of local market presence might have an impact on
raising the volume of sales and enhancing the gamut of customers may also be
considered for further research.

167
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Appendices

178
 Questionnaire
Dear Respondent,
Store promotion is a marketing strategy that is meant to bring people into the store and to
purchase specific items that are part of the in-store promotion. These strategies most often
come directly from manufacturers, or they may be offered by the store itself. This
questionnaire is for the purpose of knowing the marketing strategies in creating brand image
of FMCG in India with special reference to store promotion. Store promotion includes:-
Attractive product display, Special discount and Cash discounts, Gifts, Free Items or Prizes,
Layouts, Signage and Floor advisement etc. You are requested to give your fair opinion for
the questions asked. Your responses will be used purely for academic purpose.
Demographic
Name (optional):__________________________________________________
Age group:
 20-35 years 1
 35-50 years 2
 50 yrs and above 3
Gender: Male 1 Female 2
Income:
 Upto 1 lakh 1
 1-3 lakh 2
 Above 3 lakh 3
Qualification: Graduate 1 Post graduate 2

Marital status: Married 1 Unmarried 2

Occupation: Student1 Service 2 Business 3 Housewife 4

Section A
1. How often do you purchase FMGC (Fast moveable consumer goods)
products from stores (Malls/Retail outlets)?

Weekly 1 In 15 days 2 Monthly 3 As and when need arises 4

2. Have you ever purchased a FMCG product due to the influence of any
Marketing strategies used to promote the product?
Yes 1 No 2

3. Are you aware about the different in store promotional tools used by
the marketer for selling FMCG product?
Yes 1 No 2

4. Do you purchase a product due to its brand image?

Yes 1 No 2

5. Have you ever purchased FMCG product due to Store Promotion

Strategies used by a marketer?
Yes 1 No 2

Section B
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Below mentioned are some Store Promotion Strategies used by marketers in promoting
FMCG product in their Store outlets. Please mark your choice to a five point scale by
putting a tick ( ) on the alternative mentioned in the scale.
Where:
1. Always 2. Most of the time 3. Sometimes 4. Cannot say 5. Never

Particulars 1 2 3 4 5

Attractive product display in a store Motivates me to visit the

same outlet next time

Attractive product display in a store Influences my shopping

decision

Attractive product display in a store Build the brand Image of the

product

Attractive product display in a store Leads me to unplanned buying

My shopping cart includes extra product because they are displayed

attractively

Special discount and Cash discounts offered in a store Motivates

me to visit the same outlet next time

Special discount and Cash discounts offered in a store Influences

my shopping decision

Special discount and Cash discounts offered in a store Build the

brand Image of the product

Special discount and Cash discounts offered in a store Special

discount and Cash discounts offered in a store Leads me to
unplanned buying

My shopping cart includes extra product because they are offered

on a discounted rate

Gifts, Free Items or Prizes (contests, sweepstakes, games)

offered at stores Motivates me to visit the same outlet next time

Gifts, Free Items or Prizes (contests, sweepstakes, games) offered at

stores Influences my shopping decision

Gifts, Free Items or Prizes (contests, sweepstakes, games) offered at

stores Build the brand Image of the product

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Gifts, Free Items or Prizes (contests, sweepstakes, games) offered at
stores Leads me to unplanned buying

My shopping cart includes extra product because they are offered

some gifts with them

Layouts, Signage and Floor advertisement Motivates me to visit

the same outlet next time

Layouts, Signage and Floor advertisement Influences my shopping

decision

Layouts, Signage and Floor advertisement Build the brand Image of

the product

Layouts, Signage and Floor advertisement Leads me to Layouts,

Signage and Floor advertisement unplanned buying

My shopping cart includes extra product because of the layouts and

signage or floor advertisement displaying the product

Store Television display Motivates me to visit the same outlet next

time

Store Television display Influences my shopping decision

Store Television display Build the brand Image of the product

Store Television display Leads me to unplanned buying

My shopping cart includes extra product because of in store

Television

Store radio Motivates me to visit the same outlet next time

Store radio Influences my shopping decision

Store radio Build the brand Image of the product

Store radio Leads me to unplanned buying

My shopping cart includes extra product because of store radio

Vouchers/coupons Motivates me to visit the same outlet next time

Vouchers/coupons Influences my shopping decision

Vouchers/coupons Build the brand Image of the product

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Vouchers/coupons Leads me to unplanned buying

My shopping cart includes extra product because the store offers

some vouchers and coupons which can be redeemed while shopping
next time.

Background music Motivates me to visit the same outlet next time

Background music Influences my shopping decision

Background music Build the brand Image of the product

Background music Leads me to unplanned buying

My shopping cart includes extra product because of the soothing

background music

Shop Congestion / Shop Density and Cleanliness Motivates me

to visit the same outlet next time

Shop Congestion / Shop Density and Cleanliness Influences my

shopping decision

Shop Congestion / Shop Density and Cleanliness Build the brand

Image of the product

Shop Congestion / Shop Density and Cleanliness Leads me to

unplanned buying

My shopping cart includes extra product because the store is clean

and congestion free

Behaviour of Sales People Motivates me to visit the same outlet

next time

Behaviour of Sales People Influences my shopping decision

Behaviour of Sales People Build the brand Image of the product

Behaviour of Sales People Leads me to unplanned buying

My shopping cart includes extra product because they are

recommended by salesperson

Store Atmosphere Motivates me to visit the same outlet next time

Store Atmosphere Influences my shopping decision

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Store Atmosphere Build the brand Image of the product

Store Atmosphere Leads me to unplanned buying

My shopping cart includes extra product because of the store

Atmosphere

Store fragrances Motivates me to visit the same outlet next time

Store fragrances Influences my shopping decision

Store fragrances Build the brand Image of the product

Store fragrances Leads me to unplanned buying

My shopping cart includes extra product because the aroma in the

store

Parking Space and Location Motivates me to visit the same outlet

next time

Parking Space and Location Influences my shopping decision

Parking Space and Location Build the brand Image of the product

Parking Space and Location Leads me to unplanned buying

My shopping cart includes extra product because of the parking and

location facilities

183
 Research Paper
On
In Store Promotion - A Determinant in Building Customer
Purchase Intention

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ISSN:2249-877X Vol. 4, Issue 10, Oct. 2014 Impact Factor: SJIF 2013=4.748

P ublis he d b y: S out h A s ia n A c ade m ic R es e arc h J our nals

SAJMMR:
South Asian Journal of
Marketing & Management
Research
( A D o u b le B l i n d R e fe r e e d & R e v ie we d I nt e r na t io na l J o ur na l)

IN STORE PROMOTION - A DETERMINANT IN BUILDING

CUSTOMER PURCHASE INTENTION

Dr. Geeta Nema*; Astha Joshi**

*Reader,
IIPS, DAVV.
**Research Scholar,
IMS, DAVV.

ABSTRACT

Today is the world of marketing where the customer prefers those products that are
highly promoted and also displayed properly. FMCG refers to fast moving consumer
goods that are purchased frequently, consumed fast and their shelf life is also low .In
store promotion is a promotional technique used by the marketers to persuade the
customer to buy the products from their store.

The aim of the present study is to understand the effect of in store promotional tools
as a determinant in building customer purchase intention. The study is carried out by
using exploratory research design and the data is collected by constructing
structured questionnaire. The sample size is comprised of 176 sample respondents.
The data was analyzed by using reliability statistics, frequency distribution and
factor analysis. The results shows that in store promotional tools like advertising,
store ambiance, promotion and sales people behaviour plays a significant role in
building customer purchase intention in FMCG sector.

KEYWORDS: FMCG, In store promotion, customer intention, factor analysis.

______________________________________________________________________________

INTRODUCTION

In today’s competitive world where the customer is having varied choices in terms of brands, the
customer is very choosy in selecting a specific product or brand. Hence, the marketers have
started using the concept of in store promotion to cater the immediate needs of the customers and
make them satisfied.

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In-store promotion is a marketing strategy that is meant to bring people into the store and to
purchase specific items that are part of the in-store promotion. These strategies most often come
directly from manufacturers, or they may be offered by the store itself. The idea is to generate
additional revenue due to the extra sales of the products involved, or even to induce a brand
switch when offered by the manufacturer. These strategies help to drive traffic into the store, to
eliminate too much stock, or to create additional revenues when sales are slumping. It also helps
in building the brand image and creates customers intention to buy a specific product or brand.

This strategy of in store promotion is widely used by the manufacturers of FMCG products as
these are the products which are consumed by the customers frequently and regularly. Also in
case of Fast Moving Consumer Goods, large numbers of variants are available which provide the
marketer the scope to use such promotional strategies which can convince the customer to
purchase their products.

LITERATURE REVIEW

In order to find out the gap several earlier studies were reviewed. Some of them are mentioned as
follows:

Vasanth Kiran, Mousumi Majumdar and Krishna Kishore 2012 in their study ―Innovation in In-
Store Promotions: Effects on Consumer Purchase Decision‖ states that due to the scarcity of time
and advancement in technological and strategical innovations, it becomes inevitable for the
retailer to come up with various new ways of promoting. Retailers open in-store media (ISM)
and allow manufacturers to advertise to shoppers. With an informative and easy-to-use retail
experience, shoppers are empowered to access a wide variety of real-time product information
including pricing, location, availability, helpful advice, targeted promotions and more right in the
aisle, without waiting for a store associate. This enhanced self-service gives customers the best
of both worlds — the instant information access in an internet-based online store and the
irreplaceable tactile experience of shopping in the brick and mortar store.

Mariri Tendai and Chipunza Crispen through their work in ―In-store shopping environment and
impulsive buying‖ reviled that the in-store shopping environment does have an influence on
impulsive buying among consumers. Coupons and vouchers, store display, advertisements and
promotions, behaviours of shop staff as well as price were the only significant determinants of
impulsive buying among the factors investigated.

Don E. Schultz and Martin P. Block have examined the ―U.S. consumer views of how in-store
promotion works‖. This study takes a holistic, consumer reported view of how U.S. consumers
consider and use in-store promotion, media and marketing activities. Included are consumers
views on how various promotional activities are used, which are said to have the most influence
on their purchase decisions. How In-Store promotion works from both the marketer and retailer
view, it is a complex mix of external-to-the-store and what occurs or is available inside the store.

According to Sung Jin Yoo and Young Jae Chang 2005 in their study ―An Exploratory Research
on the Store Image Attributes Affecting Its Store Loyalty‖ it is reviewed that in department
stores, store atmosphere, location, shopping facility and sales-personnel service affect store

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loyalty significantly. In discount stores, advertising, quality of merchandise, credit service and
store atmosphere have a significant influence upon store loyalty statistically

OBJECTIVES

To study the awareness about in store promotion among sample respondent.

To study different in store promotion promotional tools used by marketers from

customers perspective.

To study the impact of in store promotional tools on demographic variables like gender,
age, and occupation.

To study the impact of in store promotion on consumer purchase intention.

RESEARCH METHODOLOGY

The type of the research design used for the present study involves exploratory research.
Exploratory research is designed to provide a background to familiarize and to provide a
background to just explore the general subject. It also increases familiarity of the researcher with
the subject. The nature of data is primary as it is collected for the first time from the sample
respondents using FMCG products.

TYPE OF SAMPLING: random sampling. Random sampling from a finite population refers to
that method of sample selection which gives each possible sample combination an equal
probability of being picked up and each item in the entire population to have an equal chance of
being included in the sample.

SAMPLE SIZE: 176 respondents belonging to the age group of 20-35 years, 35-50 years and 50
years and above, having different annual income with the qualification as graduate or post
graduate were taken as sample respondents for the study.

DATA COLLECTION TOOLS: Primary data is collected through Structured Questionnaire

which is designed to meet the objective of the study. Questionnaire comprises of two parts, first
part deals with the awareness of consumers towards in store promotional tools and the second
part deals with the influence of in store promotional tools on purchase of FMCG product.

DATA ANALYSIS AND INTERPRETATION

For the purpose of data analysis three tools were used which are reliability test, frequency
distribution and factor analysis.

RELIABILITY TEST: The reliability of the instrument is tested by using Chronbach alpha
method. The number of items taken in the present study are 27 and their reliability is coming to
be 0 .7, thus it may be said that the reliability of the instrument used in the research is good and
acceptable.

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TABLE 1: RELIABILITY STATISTICS

Chronbach’s alpha No. of items

.707 27

The first part of the questionnaire which is comprised of the demographic variables and the
awareness related questions are analyzed by using frequency distribution.

THE FINDINGS OF THE ANALYSIS ARE MENTIONED AS UNDER

1. AGE GROUP

TABLE 2: FREQUENCY DISTRIBUTION BY AGE

Age Group Frequency Percent Valid Percent

20-35 92 52.3 52.3

35-50 39 22.2 22.2

Valid
50 yrs and 45 25.6 25.6
above

Total 176 100.0 100.0

The above table depicts that the age group 20-35 years contributes 52.3% share of the total
respondents, age group above 50 contributes 25.6% of the total respondent and the minimum
share i.e. 22.2% is of the age group 35-50 years. Thus it may be observed that youth is affected
maximum by the impact of various in store promotion tools on their buying behaviour.

2. GENDER

TABLE 3 : FREQUENCY DISTRIBUTION BY GENDER

Gender Frequency Percent Valid Percent

Valid Male 99 56.3 56.3

Female 77 43.8 43.8

Total 176 100.0 100.0

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From Table 3 it is observed that male contributes more than females of the total respondents.
Thus it can be concluded males are more affected by in store promotional tool while purchasing
FMCG products as compaired to females.

3.INCOME

TABLE 4: FREQUENCY DISTRIBUTION BY INCOME

Income Frequency Percent Valid Percent

Up to 1 lakh 32 18.2 19.2

1-3 lakh 63 35.8 37.7

Valid
Above 3 lakh 72 40.9 43.1

Total 167 94.9 100.0

Missing System 9 5.1

Total 176 100.0

The above table 4 shows the income of 167 respondents out of 176 respondents taken for the
present study. It includes low income group i.e. upto 1 lakh, Medium income group i.e. 1- 3 lakh
and high income group i.e. above 3 lakh, thus it may be concluded that the low income group is
least effected by various store promotion tools as they purchase FMCG products on there
preferences not according to the in store promotion used to sell the products. Medium income
and high income group are most effected by the IMC tools while purchasing FMCG as the study
the various schems prior puchase of any product.

4. QUALIFICATION

TABLE 5: FREQUENCY DISTRIBUTION BY QUALIFICATION

Qualification Frequency Percent Valid Percent

Graduate 85 46.8 46.8

Valid Post graduate 91 53.2 53.8

Total 176 100.0 100.0

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The above table denotes the qualification of the respondent among which the graduate segment
which is 46.8% of the total respondent where as post graduate segment repesents 53.2% of the
total population which tells that the highly qualified segment is more aware and responsive
towards in store promotional tools while purchasing FMCG products.

5. MARITAL STATUS

TABLE 6: FREQUENCY DISTRIBUTION BY MARITAL STATUS

Marital status Frequency Percent Valid Percent

Married 114 64.8 64.8

Valid Unmarried 62 35.3 35.3

Total 176 100.0 100.0

Table 6 represents the marital status of the respondent among which married segment is 64.8%
of the total respondent where as the unmarried segment repesents 35.3% of the total population.
Thus it may be interpreted that the bachelors or the unmarried customers are more attracted
towards the in store promotional tools while purchasing FMCG products as most of the youths
also fall in this category so they are more aware about various offers in various stores.

6.AWARENESS

TABLE 7: FREQUENCY DISTRIBUTION BY AWARENESS

Awareness Frequency Percent Valid Percent

Aware 110 62.5 62.5

Valid Unaware 66 37.5 37.5

Total 176 100.0 100.0

From table 7 it is observed that the number of respondents who are aware about in store
promotional tools represents 62.5% of the total resondent and the respondents who are unaware
about IMC tools represent 37.5% f the total respondent. Thus most of the coustomes are aware
about the in store promotional rools and use the various schems provied in stores while
purchasing FMCG products.

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7. QCCUPATION

TABLE 8: FREQUENCY DISTRIBUTION BY OCCUPATION

Occupation Frequency Percent Valid Percent

Service 58 33.0 33.0

Business 59 33.5 33.5

Valid House wife 20 11.4 11.4

Student 39 22.2 22.2

Total 176 100.0 100.0

Table no. 8 denotes the occupation of the the least percentage i.e. 11.4%. respondent among
which the highest share is of service and buiness class representing 33% and 35% respectively
and students represent 22.2% of total respondent whereas house wife’s represent Thus it can be
concluded that customers from business and service class are the once who are most aware and
responsive towards in store promotional tools.

The second part of the questionnaire is analyzed by using factor analysis. Factor analysis is a
multivariate techniques which helps in data reduction. This technique helps in grouping the
variables into various groups on the basis of commenness among them.After running the factor
analysis it is observed that the 19 variables were grouped in 5 groups on the basis of
commonness among them.These groups have been given a specific name by the researcher.

TABLE 9: KMO AND BARTLETT'S TEST

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .702

Approx. Chi-Square 2045.817

Bartlett's Test of Sphericity df 171

Sig. .000

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TABLE 10: VARIABLES FORMED ON THE BASIS OF FACTOR ANALYSIS

S.no. Name Total % of variance Cumulative %

1 ADVERTISING 3.481 18.319 18.319

2 AMBIENCE 2.427 12.773 31.092

3 INFORMATION 2.262 11.903 42.995

4 PROMOTION 2.059 10.835 53.830

5 INFLUENCE 2.058 10.832 64.662

I GROUP ADVERTISING INCLUDES THESE VARIABLES

TABLE 9: GROUP I- ADVERTISING

S.no. Variables Factor loading

1 Vouchers/coupons .731

2 Layouts .623

3 In store Television display .789

4 Floor advertisement .749

5 Instant cash discounts .458

Advertising is the first group formed which includes the in store promotional tools which are
most widely used by the FMCG companies to attract customers such as vouchers/coupons,
layouts, in store Television display, floor advertisement etc. these are the variables which mostly
influence the customers. These variables influence customers the most to purchase FMCG
products while shopping in store.

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THE II GROUP AMBIENCE INCLUDES THESE VARIABLES:

TABLE 10: GROUP II- AMBIENCE

S.no. Variables Factor loading

1 Background music .798

2 In store radio .747

3 Shop density .889

4 In store fragrances .433

5 Ventilation .550

6 Impact of cleanliness .630

The second group ―Ambience‖ includes the variables providing an environment which indirectly
influences the customers to purchase FMCG products in a store, it also motivates them to revisit
the store. The various variables include in this group are background music, in store radio, shop
density, in store fragrances etc. This group attracts small number of people as the customers
responding to messages and pamphlets are very less, thus this group have a less influence on
customers.

THE III GROUP INFORMATION INCLUDES THESE VARIABLES

TABLE 11: GROUP III- INFORMATION

S.no. Variables Factor loading

1 Experts advice .612

2 Signage .848

Information is the third group formed which refers to communication of knowledge by the sales
person directly to the customers or through the use of signage used to inform customers about the
FMCG product in store. These variables effect less numbers of customers.

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THE IV GROUP PROMOTION INCLUDES THESE VARIABLES:

TABLE 12: GROUP IV- PROMOTION

S.no. Variables Factor loading

1 Special discount .859

2 Gifts .706

The fourth group formed on the basis of responses is promotion including persuading customers
to purchase the products by providing them special discounts and various gift items on the
purchase of several items. These tools are effective only in selective occasions thus they have a
very less influence on the purchase decision of customers.

THE V GROUP INFLUENCE INCLUDES THESE VARIABLES:

TABLE 13: GROUP V- INFLUENCE

S.no. Variables Factor loading

1 Attractive product display .494

2 Overhead speakers .781

3 Behavior of sales people .540

The last group ―influence‖ includes attractive product display and overhead speakers which
affects the purchasing decision of customers on a very limited ground or have a limited coverage.

CONCLUSION

FMCG sector is the most competitive and growing sector as customers require these products on
regular basis and their demand for FMCG products keeps on increasing, thus the companies need
to promote their products so that they appear different and better from the competitor’s product.
In store 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 or the
trade. In store promotion creates a positive impact on consumer purchase intention and form
long-term relationship with the customer thus create brand image in customers mind. Sixty
percent of all in-store purchases are unplanned, according to associate professor of marketing at
Lehigh University in Bethlehem, Pennsylvania which provide a great scope for the marketer to
use in store promotional activities.

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The present study deals with the impact of in store promotion tools while purchasing FMGC
products, it can be concluded that in store promotion tools have a great impact on the purchase
decision of FMCG products. The demographic finding of the study shows that the respondents of
the age group 20-35 and having medium income are more aware and responsive towards IMC
tools. The factors which have a great influencing power in the study include advertising,
ambience, information, influence and promotion. Out of these the most important role is played
by the advertising factor and least important contribution factor is named as promotion. Thus it
may be concluded that it is only the vouchers/coupons, layouts, in store Television display, floor
advertisement etc. influence and motivate a customer more to buy a particular FMCG product.

Thus it may be recommended for the marketers of FMCG products that they should use more
and more in store promotional tools so that they can increase their customer base and also
motivate a customer to buy FMCG products from their outlet leading to increased market share
and ultimately contributing to increased sales and profitability.It is one of the important tool in
building customer purchase intention.

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Sung Jin Yoo, ―An Exploratory Research on the Store Image Attributes Affecting Its
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Mariri Tendai and Chipunza Crispen, ―In-store shopping environment and impulsive
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