Now a days most of the FMCG companies are considering sales promotion as an important part of their marketing strategy. From the analysis of survey it becomes clear that consumers do response to the sales promotion campaign, but there are customers who strongly prefer to stick to brand name. The term FMCG (fast moving consumer goods), although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use.
Conceptually, however, the term refers to relatively fast moving items that are used directly by the consumer. Thus, a significant gap exists between the general use and the conceptual meaning of the term FMCG. Further, difficulties crop up when attempts to devise a definition for FMCG. The problem arises because the concept has a retail orientation and distinguishes between consumer products on the basis of how quickly they move at the retailer’s shelves. The root question therefore, is what industry turnaround threshold should be for the item to qualify as an FMCG
HUL Hindustan Unilever HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India.
Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 – 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46. billion in 2011. Unilever has about 52% shareholding in HUL. OBJECTIVES OF THE STUDY •In order to study the above primary objective the following secondary objective have been proposed •To study consumer preferences with respect to sales promotion in FMCG sector. •To examine tradeoffs, relative importance of different attributes while responding to a sales promotion offer.
•To study the effect of sales promotions in FMCG sector esp. in soaps and detergent industry. •To study consumer behavior in purchase of soaps and detergent DATA ANALYSIS Primary Data Collection Method: Survey method to be used for primary data collection. • use of questionnaires as an instrument for survey method. • Structured questionnaire. • Type of questionnaire: Open ended and closed ended. Secondary Data Collection method: • Reference books. • Internet. Sampling Detail • Target population: The population for this research study consists of the residence of Hyderabad. • Sampling unit: In this study the sampling unit is individual consumer. • Sample size: 100 consumers 100 retailers. • Sampling method: The sample is to be selected by using convenience-sampling method
Characteristics of FMCG Products • Individual items are of small value. But all FMCG products put together account for a significant part of the consumer’s budget. • The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required. Many of these products are perishable. • The consumer spends little time on the purchase decision. Rarely does he/she look for technical specifications (in contrast to industrial goods). Brand loyalties or recommendations of reliable retailer/dealer drive purchase decisions. Trial of a new product i. e. brand switching is often induced by heavy advertisement, recommendation of the retailer or neighbors/friends. • These products cater to necessities, comforts as well as luxuries. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers. The importance of consumer sales promotion in the marketing mix of the fast moving consumer goods (FMCG) category throughout the world has increased. Companies spend considerable time in planning such activities.
However, in order to enhance the effectiveness of these activities, manufacturers should understand consumer and retailer interpretations of their promotional activities. The study here pertains to consumer’s perceptions regarding sales promotion. Some past researches have suggested that promotion itself has an effect on the perceived value of the brand. This is because promotions provide utilitarian benefits such as monetary savings, added value, increased quality and convenience as well as hedonic benefits such as entertainment, exploration and self-expression. These are the four basic pillar of marketing mix.
Most of the marketing strategies are built on the basis of these criteria promotion is one of the important elements of marketing mix. There are so many elements of promotion such as: •Advertising •Direct Marketing •Public Relations •Sales Promotion Traditionally, sales Promotions have been used by marketer to increase sales in the short term. However, in the last few decades this communication tool has evolved and now is considered from a strategic point of view. For this reason, it is necessary to realize new studies in this area and study how consumers evaluate sales promotions.
Sales promotions have grown in both importance and frequency over the past few decades. Although an accurate estimate for total sales promotions expenditures does not exist, we can be sure that the trend is up. Sales promotion serves three essential roles: It informs, persuades and reminds prospective customers about a company and its products. Even the most useful product or brand will be a failure if no one knows that it is available. As we know, channels of distribution take more time in creating awareness because a product has to pass through many hands between a producer and consumers.
Therefore, a producer has to inform channel members as well as ultimate consumers about the attributes and availability of his products. The second purpose of promotion is persuasion. The cut throat competition among different products puts tremendous pressure on their manufacturers and they are compelled to undertake sales promotion activities. The third purpose of promotion is reminding consumers about products availability and its potential to satisfy their needs. From these elements Sales Promotion is the element which is in the focus of this project.
Further Sales Promotion is quite broad term it includes- Consumer Oriented Sales Promotion Trade Oriented Sales Promotion Tools of Consumer Oriented Sales Promotion There are so many tools or technique available to the marketers for achieving objective of sales promotion. These tools should be used considering all other factors affecting such as cost, time, competitors, availability of goods etc. These tools are as under. 1. Coupons 2. Price-Off 3. Freebies 4. Scratch Cards 5. Lucky Draws 6. Bundling Offer 7. Extra Quantity