A STUDYON IMPACT OF

PROMOTION ON CUSTOMERS
By
S.Naveen
IPE
Contents
 A Study on Impact of Promotions on
Customers

 Stock Take

 Future Logistics
 Introduction
 Future group one of the leading companies in
India
 Led by its founder and group CEO Mr.
Kishore Biyani.
 Diversified in various sector Future Group is
consumer finance, capital, Insurance, brand
development etc.
 Retail forms are the core business activity of
future group India.
Contd..
 Pantaloon retail is one of the major segment in
Future group
 Pantaloon is changed to Future Value Retail
Ltd
 Pantaloon heads the list of Top ten retailers in
India
 Future Value Retail Ltd contributes maximum
of all other in Indian retail sector
 About Big Bazaar
About big bazaar Hypermarket chain of
Departmental Stores
Outlet 100 outlets in India Located in 70
cities
Parent group Pantaloon Retail Group Subsidary
of Future Group
Owner Mr kishore Biyani
Founded 2001
Headquaters Jogeshwari,Mumbai
Industry Retail
Website www.bigbazaar.com
Tag Line Is se sasta aur acha kahin nahi
 Main Features
 Understanding the needs of Indian customers
 Traditional Bazaar ambience
 Create a shopping experience
 Low pricing products
 Value for your money
 Cater to ever possible retail need of a consumer
 Economies of scale
SWOT analysis of Big Bazaar
Strength
High Brand equity in retail markets
State-of-art infrastructure of Big
Bazaar outlets
One stop shop for variety of products,
increasing customer and available
choices
Opportunity
Organized retail is just 4.15% of total
pie of Indian Retail market
Evolving Customer Preferences in
recent years
Weakness
Unable to meet store opening targets
so fast
Failing revenue per square feet
Threats
Competitors, global big players
planning to foray in to market
Unorganized retail market of India
Government policies
Promotions in Big bazaar

 New innovative cross-sell and up-sell

strategies
 Future Card (the card offers 3% Discount)
 Endorsement by M.S. Dhoni and Asin
 Point –of-purchase promotions
 Advertising in print media, TV, FM and
through Hoardings
Contd…

Tag lines of promotions

 “Is se sasta aur accha kahin nahi”
 “Umeed se Duguna”
 “Phela sata, doosara usse bhi sastaa”
 “Joona do naya lo”
 “Yeh keemat nahi chunauti hai”
 “saal ka sabse sasta 3 din”-Republic Day
Promotion
New promotions
Contd…

 The Great Indian Shopping festival

 Shop and win thak dina din is tag line
 Three incentives to customers
 Lucky Draw
 Discount vouchers
 Sone ki chidiya gives assured gifts on
token amount.
Literature review on promotions
 Contd…
 Sales promotion comes under paid
impersonal communication to customers
 It offers extra value and incentives to
customers to visit a store during specific
period of time like “The great Indian
Shopping Festival from Apirl 17thth to May
16th
 There are two types of sales promotions
they are B2B and B2C
Sales promotion-short-term stimulus

B2B B2C
 Product launch events  Coupons
 Trade Shows  Sampling
 Conventions  Premiums
 Catalogs  Contests
 Sweepstakes
 Catalogs
 Demonstrations
 In-store Displays
 Trade Shows
Push vs pull promotions

 Convince wholesalers  Heavy advertisement and

and retailers to stock and sales promotion efforts
sell directed at consumers so
 Producer uses that they will requests the
advertising, personal products from retailers
selling, sales promotion  Products are pulled
to convince the through the distribution
intermediaries system
 Idea is to push the
product through the
distribution system to the
stores
Methodology

 Collected 100 samples

 Samples are collected by using random
sampling technique
 Analysis is done by using SPSS software
Analysis of questionnaire
Age

9 4

24
below 20
24 20 to 30
30 to 40
40 to 50
above 50

39

Inference: In this analysis 39% which is in maximum

number i.e middle aged Customers visiting the store
frequently.
 Contd..
Annual income

16 21
<50000
50000 to 1lakh
14
1lakh to 3lakhs
3lakhs to 5lakhs
24 Above 5lakhs

25

Inference: This shows that store is mostly

concentrating more on middle income group rather
than upper income group.
 Contd..
m onthly visits

30

25
once
20
percentages

tw ice
15 thrice

10 four times
more than four times
5

0
1

Inference: In this analysis Considered all customers

equally who are visiting the store i.e once, twice and
so on.
 Aw areness of the offer

yes
no

Inference: 95% customer are aware of “The Great

Indian Shopping Festival” in Big Bazaar and the rest
of them also come to know about tha after entering in
store.
 Media

35
30
25 New s papers
20
response in % Hoardings
15
Pamphlets
10
Through friends and Neighbours
5
After entering in to store
0
1
type of m edia

Inference: Mostly, Through News Papers and

Pamphlets customers come to know about this offer
this means of media reduces the operating cost of
store.
 Promotional incentives

Assured Gifts

Discount vouchers Series1

Lucky draw coupons

0 10 20 30 40 50 60
Responses in %

Inference: More than 55% of customers showing

interest on assured gifts as promotional incentives.
 Satisfaction on choice of gifts

37

Yes
No

63

Inference: 67% of customers are satisfied by choice

of gifts displayed but 37% are not satisfied so
concentrate on innovative gifts which are give to the
customers.
 Token amount

Yes
34%
Yes
No
No
66%

Inference: 66% of customer are not interested to pay

extra token amount on assured gifts only 34% are
interested so customers are not preferring token
amount.
 Impact on number of visits

60
48
50
Responses in %

40
30 24
20 14
9
10 5

0
Strongly Disagree Disagree Neither agree nor Agree Strongly agree
disagree

Inference: 48% of customer agreed that their number

of visits increased due promotions so store
concentrate innovative promotions through which
both customers and retailers are benefited.
 Extend the duration of offer

26%

Yes
No

74%

Inference: 74% customers are asking the store to

extend the Gifts redemption period and dates of offer
and rest of them not interested to continue this offer.
 Awareness on wednesday bazaar

10%

Yes
No

90%

Inference: The offer Wednesday bazaar is able to reach

to 90% of the customers in creating awareness and the
remaining are left unaware , so the outlet should take
care that the all the targeted customers should aware of
this.
 Savings out of Wednesday Bazzar

50
45
40
Responses in %

35
30
25
20
15
10
5
0
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree

Inference: Most of the customers participating in

Wednesday Bazaar feel like, they get maximum
savings on that day.
 Increase in quntity of shopping

21%

Yes
No

79%

Inference: 79% of customer accepting that their

quantity of shopping is increased on offer days in Big
Bazaar and rest of them are not accepting this.
 Staff patiency

24%

Yes
No

76%

Inference: 74% of customers responded that the staff

in Big Bazaar is patient enough to explain all offers in
the store and rest of them are not accepted this. So
keep a eye on staff at the time of dealing with
customers.
 Staff explanation imapact on buying behaviour

32
35 30
30
22 Strongly Disagree
25
Disagree
20 14 Neither agree nor disagree
15
Agree
10 Strongly agree
2
5
0
1

Inference: 52% are disagreeing on the query that staff

explanation will show impact on customer buying
behavior and 32% are Neither agreed Nor disagreed
to this query.
 Overall satisfaction on offers

45 41
40
35
Responses

30
25 21
18
20
15 11 9
10
5
0
Strongly Disagree Disagree Neither Agree Nor Agree Strongly Agree
Disagree

Inference: Through this we can infer that overall satisfaction

of customer will not achieve only by sales promotions some
other parameters like ambiance, location, shopping
experinence etc., all together gives satisfaction to customers.
 Conclusion: We can conclude by this analysis that
promotions shows impact on numbers of visits and
quantity in shopping of the customers but overall
satisfaction of customer are not achieved only
through sales promotions.
Suggestions from customers
 Choice of assured gifts are rechecked.
 Token amount should be removed or
decreased.
 Gifts redemption time should be increased
to 2 to 4 days.
 Stock of gift Merchandise should be
properly maintained till the last date of
offer.
Stock Take in

Purpose
 To find out shrinkages
 To find damages
 To differentiate INF from other
merchandise
 To separate WBC ’s
 To prepare stock budget
About FKS Team
 Stock take held in the store once in a 3 months
under the inspection of FKS
 Zonal wise FKS team will divide like south zone
FKS team, North zone FKS team etc.,
 This team provide all equipments and give
guidance to all departments in store for stock
take
 They assign a location no for scanning and give
HST for scanning each and every piece in that
location and the same continues to all
departments
 They stay 5 to 6 day in each store for stock take
they separately appointed by HO
Stock Take procedure

 Done separately for different departments

 Before the beginning of this procedure each and every
dept check for the bar codes on every merchandise
 When FKS team arrive to store they start with any
department and assign location numbers in that
department
 HST (Hand Set Terminal) is given to department for
scanning every piece
 Location has certain code that is first scanned and global
count noted in HST
 Global count and scanning count should match in this
procedure
Contd..
 FKS team issues 3 types stickers at the
time of stock take they are
This is stick to Item Not found (INF)
merchandise at the time of scanning

This is stick to the merchandise not having bar

code (WBC)

After completion of scanning in that particular

location this is stick to location code
Contd..
 Stock take of back end will be done in the
morning and at night displayed merchandise is
done
 After completion of stock take in one department
FKS team shift to other department procedure
goes on all the store
 Stock take report is prepared by FKS team and
verify all the items
 This help to prepare stock budget
Future Logistics
 Logistics: It is an aspect of supply chain
that refers to planning, implementation and
control of efficient flow and storage of
goods, services from point of origin to
consumption.
 Future logistics is total back end of store
 This operates In procurement and reverse
of goods and services
Contd…
 The main functions of future logistics are

Functions of
future logistics

Stock Inward Stock outward Barcode control

Stock inward
 Stock inward can be in two ways from ware
house and from vendors
 Food bazaar stock inward and Big Bazaar stock
inward records are maintained differently for
easy access
 Food Bazaar stock received from kandla koyya ,
Big bazaar stock is received from malkapur ware
houses respectively and also through some
vendors goods are received to store
 No stock is inward on stock take days
Stock inward procedure
 Indent is given by DM regarding stocks they required or
automatic indent is passed through sales in store to ware
house
 In response to indent Ware house sent the goods along
STN (stock transfer note number)
 Stock received by logistics department and check for
pick list which contains all details of stock delivered by
ware house, in case of vendors bill itself act as pick list
 Through pick list each and every department check their
received goods and in the case of food bazaar goods are
checked by logistics dept only
Contd..
 After checking incase any damaged, expired goods are
outward
 Incase any discrepancies those are entered into respective
DIS record and send a mail regarding the same to ware
house
 After all clearances in STN , GRN (goods received note
number) recorded in inward record
 GRN is prepared by the logistics dept after scanning each
piece for a model and separate INF from them
 The items which come under INF (item not found) and MRP
mismatches are mailed to distribution channel for solving the
problem those goods are not placed on floor
 Having signed in GRN by dm of particular dept and recorded
in hand over register and goods are hand over to respective
departments
Stock outward
 Damaged, Interchanged stock, Expired stock
and Discrepancies are outwarded by logistics
department
 RSTO mail is send by concern department to
logistics and the same acknowledged to DC
based on respective problem in reception of
merchandise
 In response to RSTO by logistics, DC sent an
outward STN for counting the merchandise
 Gate pass and delivery no made by logistics and
attached to concern cottons and outwarded
 Vendor merchandise also outwarded in the
same procedure
Bar code control
 Other important operation in logistics in issuing
bar codes for WBC merchandise
 The process is as follows concern department
ask for particular bar code
 Logistics issues one sheet contain details like
bar code, item description, reason of bar code
 The sheet is dully filled by departments and
signed by DM hand over to logistics
 Then they issues bar code after entering the
details in Bar code control register
Other functions of Logistics
 Vendor management, vendor schedule preparation
 Checking of stock balance in each department help to
give quick indent
 Maintenance records which are audited by both internal
and external audit
 Vegetable Dump and bakery Dad maintained which are
not able to outward
 Frees inward and hand over to customer service desk
 Maintenance of NSM (non sale merchandise) like
trolleys, bags, baskets etc., and recording the same in
NSM register
 Report preparation etc..,
Suggestions
 Back end in store ware house space is
increased because huge stock is not fit in that
space and problems faced in simultaneous
counting by different departments
 Updated IT technologies are used for speed up
all process in logistics
 Increase the space of in store logistics room for
clear record maintenance in racks
 Innovative ideas are implemented to decrease
dump and dad in store shows perfect supply
chain