A study on the impact of Sales

Promotion on the Private Label

Brands with special reference
to FMCG products.
RAVIKANTH REDDY V DR. B. AMARANTH
RESEARCH SCHOLAR RESEARCH SUPERVISOR
Introduction
Retail is an industry that demands world-class operational competence in many
areas.
Knowledge and skills are required in information technology, buying, merchandise
management, marketing and promotion, distribution, human resources, and
consumer service.
With more than 12 million retail outlets, India has one of the highest retail densities
in the world (Vikram Bhalla et al., 2007).
The retail landscape in India is dominated by mom-pop stores and though organized
retail is emerging, it still constitutes of 5percent of overall retail in the country.
But last 45 years has seen many Indian companies making a entry into organized
retail, with a few multinationals entering in the cash-and-carry formats and others
tying-up with Indian companies.
Private Labels
Private labels are defined as the consumer products, which are produced in a
retailers account and are sold using either the retailers brand or another
brand, which is though sold exclusively by the specific retailer or retail chain
(Baltas, 1997; Veloutsou et al., 2004).
Kumar and Steenkamp s (2007), definition of private label a private label to
be any brand that is owned by the retailer or the distributor and is sold only
in its own outlets.
PLBs first appeared in the late 1970s, in the form of un-branded generic
products and PLBs have established firmly in the modern retail land scape of
developed economics.
The most important advantage of private-label products is related to their
low price, is mainly attributed to the fact that private-label products are not
advertised and there are no entrance costs for these products at the sales
points.
Sales Promotion
Sales promotions are a part of an integral marketing
communications mix. They offer extra value and incentives to
customers to visit a store or purchase merchandise during a
specific period of time (Ogden, Ogden, 2005, p. 365).
According to Luich and Ziegler, sales Promotion can be defined as
a direct inducement which offers an extra value and incentive for
the product to the sales force, distributors or the ultimate
consumers
Sales promotion involve incentives (allowances, rebates,
sweepstakes, coupons, premiums, and so on) that are additions to
not substitutes forthe basic benefits a purchaser typically
acquires when buying a particular product or service.
Current Literature
KOHLI & SURI (2011) declared that Pricing is a key element of the marketing
strategy. It does not require significant investments or resources, and is perhaps
the most accessible lever to manage profitability. Even minor fluctuations in
pricing can have a significant impact on both revenues and profitability.

According to Omar (1996 P. 65), Private Label brands (PLB) are perceived
differently by consumers above all in terms of quality, but also in product
packaging, consistency over time and brand image.

Siddhartha Sarkar, Dinesh Sharma, Arti D. Kalro (2016) "Private label brands in an
emerging economy: an exploratory study in India", present different naming,
packaging, and pricing strategies adopted by private label (PL) retailers in India.
This study also aims to identify preferred private label brand (PLB) categories,
factors influencing their selection, and the importance of cues in evaluation of
PLBs.
Research Gap
In the marketing mix 4Ps, existing studies have focused on the Product, Price
and Place.
But there are no recent studies on the Promotion in relation with Private
Brands.
Need for Study
In present situation all sectors are facing tough competition. It has become very
difficult to grow, stabilize and excel in business performance.
A lot of promotional activities are needed. The leading companies are using
difference techniques for promotion. These are advertising, publicity, sales
promotion, personal selling and packaging. These are serving the difference
objectives.
Sales promotion is one of them and gives a great impact on customer buying
behaviour to increase sales in short term. It contributes to neutralize the
competition effect.
To achieve the objective a strategy is needed for effective application of sales
promotion. The contribution of sales promotion strategy is significant in present
time to stay in business in competitive market.
The importance of it attracted my attention to select this topic for research study.
Objectives
1. To understand the concept of promotion, methods of promotion in markets, sales promotion,
need, objectives, importance in competitive situation, and relation with various promotional
methods,
2. To study the tools or techniques of sales promotion, impact on sales, parties involved in sales
promotion, management of sales promotion measures, need for sales promotion strategy and
its importance, and role of sales promotion strategy in progress of number of customers,
sales volume, profits and progress of the business as a whole.
3. To understand Indian FMCG sector and find out the practices adopted by the leading
companies regarding sales promotion strategy, their effects and difficulties faced in it by the
selected companies.
4. On the basis of study, to summarise the findings and give suggestions for further
improvement in sales promotion strategy practices and its contribution in achieving
objectives of sales promotion.
5. To meet the requirement of Ph. D research study.
Scope of Study
This study is relating to promotion-mix elements out of total marketing
efforts.
It will cover mainly sales promotion, methods for sales promotion, parties
involved for sales promotion, combination of promotion methods with sales
promotion, sales promotion strategy and its related concepts.
This topic has studied in FMCG sector in world and Indian industry.
Leading companies have been selected on the basis of their market share for
the research study and their comparative study has been carried out.
Further, focus is there on future of sale promotion strategy also. The scope of
the study as per the topic is sufficient enough to meet the requirement of
research study.
Thank You