Documente Academic
Documente Profesional
Documente Cultură
SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)
ACKNOWLEDGEMENT
I express my sincere thanks to the management of my college for giving me the opportunity to experience the working of one of the most relevant enterprises for my training programme. I am grateful to my institute Director for his excellent co-operation with the industry for the summer internship Program and thus giving me an opportunity to enhance my management and technical skills in the sense of the organizational activity. First of all I would express my heartfelt gratitude to my mentors Prof. Meenal Dhotre, who helped me in every aspect of my project from start to end. Without her active support this project would not have been success. I also feel greatly indebted for the privilege of having Mr.Sanoj Alinkil, DGM (Marketing) & Ms. Zaara Hooda (Asst. Marketing Manager) as project guide who gave me an opportunity to work on this unique and splendid project. I am grateful to them for their direction, assistance and guidance. Their recommendations and suggestions have been valuable for the success of this project. Finally, I also would like to express my deepest gratitude towards Vishwakarma Institute of Management for providing me an opportunity to undergo this internship program.
TITTLE
EXECUTIVE SUMMARY SECTOR INTRODUCTION COMPANY PROFILE
PAGE NUMBERS
1-2 3-7 8-15
4.
PROJECT INTRODUCTION
16-32
5.
DATA ANALYSIS AND INERPRETATIONS a) SWOT Analysis b) Cost Effective Methods of Marketing for the Loot. c) Study of Promotional Schemes OBSERVATIONS & FINDINGS
33-53
6.
54
7.
LIMITATIONS
55
8.
RECOMMENDATIONS
56
9.
CONCULSION
57
ANNEXURE
EXECUTIVE SUMMARY
THE LOOT is one of an emerging multi branded discount chain having 35 stores with presence in apparels, accessories and footwear. Mr. Jay Gupta is the Managing Director of the LOOT. The concept of Loot addresses the wide range of brands - national as well as international which are of interest to the mass market. They are the brands that provide More for less. Loot offers minimum discounts of 25% up to 60%. The Loot has a wide range of apparels, accessories & footwear for both men women and even kids. The Loot is the only such format which offers discounts throughout the year.
OBJECTIVE Primary objective of the project was to design cost effective promotional activities and understand the preferences of the target customers for the Loot. Project has a supportive objective of finding out the perception of consumers on various sales promotion activities & to examine the effect, on the sales & footfalls.
RESEARCH METHODOLOGY The questionnaire for the Loot was designed in such a way so as the find out the perception of the customers, which would help in analyzing whether such schemes would be recommended in future. The data collected was done by interviewing all the store managers across Mumbai city.
TOOLS USED The questions were asked in order to understand the various sales promotions used by Loot, the customers interest in the scheme as well as the effect on net footfalls and sales. ANALYSIS The data gathered was firstly sorted and tabulated & represented by the use of graphs and charts, as well as in the form of responses of the shoppers.
FINDINGS The Loot should offer Membership Cards to all the customers to ensure Customer Loyalty. The Customers at Loot have a preference for both cash discounts and free gifts. Various differential outcomes are observed by customers in prevailing different schemes. Mens denim and casuals are popular among stores. The customers like better discounts on prevailing offers and schemes like Buy 1 get 2 free.
2.1. RETAILING
It consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. A retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain.
growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector. All these trends and developments present a great business opportunity for software and hardware vendors from across the globe. Indian solution providers are targeting this segment have reason to rejoice. For while organized retail occupies a miniscule two to three percent of the overall Indian retailing industry, that is poised to change.
Government Supported
PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Convenience Pop/Kiranas Stores Mom and Pop/Kiranas
Modern Formats/ International Exclusive Brand Outlets Hyper/Super Markets Departmental Stores Shopping Malls Concept Stores
Source of Entertainment
2.6.3. HYPERMARKETS
These are generally large self-service outlets, offering a variety of categories with deep assortments. These stores contribute 30% of all food and grocery organized retail sales. Example: Big Bazaar. It is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an
enormous range of products under one roof, including full lines of groceries and general merchandise. When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of their routine weekly shopping needs in one trip.
Category Stores Men/ Women/Footwear/Accessories Men/ Women/Footwear/Accessories Men/ Women/Footwear/Accessories & Lifestyle products
The Loot currently operates 35 stores in cities like Mumbai, Navi- Mumbai, New- Delhi, Bangalore, Pune, Goa, Surat, Ahmedabad, Jabalpur, Jalgaon, Amritsar, Aurangabad and Nashik. Shortly Opening Stores in Mysore, Raipur, Baroda, Guwahati, Kalyan in Mumbai are on the anvil. To propel the growth of the company and to move to the next level, The LOOT has invested skillfully in IT. The company focus is also on personnel training and great emphasis is being laid on preparing the back end to take growth to about 100 stores by the year 2008-2009.
Tier I
Delhi Bangalore(Marathalli ) Banshankari Rajaji Nagar Mumbai Marine lines Bandra Andheri Malad Parel Chembur Hughes Road Mahim Link Road -Malad Sion Mumbai Central Kalyan Vasai Andheri Lokhandwala Santacruz
Tier II
Pune Ahmedabad Navi Mumbai Surat Goa Pune Aundh Solapur Bhopal Trivendrum Patna Pune (Fatima Nagar, M.G. Road, Satara Road) Nagpur Indore Mangalore Bhopal
Tier III
Nasik Aurangabad Mysore Jabalpur Raipur Jalandar Amritsar Jalgaon Ambala Bikaner Ahmednagar Shillong Guwahati Guwhati Faridabad Gaziabad Kutch Vapi Hubli Belgaum
The LOOT is currently Operational in 32 stores across India. The cities in green are at a nascent stage.
He along with a team of professional have now mapped up the growth of THE LOOT to about 100 Crores by 2008-2009. He feels that he has got a model which will work in any town in this country; hence he sees no hitch in the growth, and however he is truly aware of the competitive market of Indian Retailing & hence adding a lot of USP into his business, which will always keep him different from other players in the market.
3.8. ACHIEVEMENTS In 2005 won an award for the best performing store in India (adidas) As per The Franchising World, The Loot is amongst the Top 50 business opportunities (2008) in India Nominated by India Retail Forum
2005 2006 2007 2007 2007
As Value retailer of the year As Value retailer of the year For Innovative Concept For Retail Marketing Campaign For Retail Design and Visual Merchandising
3.9. WAREHOUSE
The LOOT is the first Surplus multi brand discount retailers who have put up a technologically upgraded warehouse with a stocking capacity of over 10 lacs pieces at any point of time to meet requirements up to 400 stores without any interruptions with full logistics in place. IT investments to match growth needs e.g... Point Of Sale, Distribution, Enterprise Indias first 10000 + sq feet retail franchisee format in our segment
Procurement
Sourcing from Low Cost manufacturers and retail them as private Brand
Centralized Warehouse
Sale to stores
3.11. The LOOT sells 60 National & International brands under our roof
To design cost effective promotional activities. To understand the preferences of the target customers. To find out the perception of consumers on various sales promotion schemes. To examine the effect on the sales and footfalls. To suggest ways to increase point of purchase sales.
4.1. ADVERTISING
Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. There are many advertising 'media' such as newspapers (local, national, free, trade), magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus sides).
Hold Interest
Arouse Desire
Obtain Action
Newspaper
Magazine
Radio
Internet
INCREASING FOOTFALLS
It is strongly recommended that one focuses on developing and educating the market. Location is one of the key elements for having high footfalls You can create a low-cost fliers campaign giving attractive offers and tie up with the local newspaper vendor to insert the handbills. Build customer loyalty by creating a point-based rewards programme. Most successful consumer durable or music retailers do this to ensure repeat purchasing. Ensure that the excitement level in the store is always high. To work closely with multiple vendors to ensure you have some exciting scheme every month.
4.7. COMPARISON BETWEEN ABOVE THE LINE & BELOW THE LINE ADVERTISING.
Definition
An immediate or delayed incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration.
Form of Communication
Mass media
Type of Communication
Impersonal to customers.
Types
Direct mail and Printed media(usually involve TV & Radio advertising, no motion graphics), Web & Internet banner public relations and ads sales promotions
Conventional
Unconventional
Suitability
Cost
Comparatively high
Comparatively Low
4.8.1. NEWSPAPERS
The market The display advertising component of the newspaper market in India for 2007 was valued at Rs. 9,290 crore. This is a growth of 18% over 2006 (Rs7, 856 crore). Print, in spite of being the biggest incumbent medium, continued to attract the largest share of advertising spends. Publications are also actively looking at ways to tap into the local advertising market with Go local drives by way of new supplements. With restrictions in OOH (out-of-home) medium usage in some cities, publications are increasingly targeting retailers and cashing in on their diverted OOH spends. The reader The India reader has never had it better, has a choice of multiple flavors and publishing houses are more than willing to cater to his/her tastes. The future Rising literacy levels and limited access to the Internet will be the key reasons why print will continue to grow. Just as in 2007, this year will see a host of new launches. Newsprint prices are on the rise and the next few quarters will continue to see increasing prices and shortages. This will put pressure on margins, forcing publishers to look at new formats/revenue streams. Growth in transport infrastructure will result in the launch of commuter newspapers across cities.
E.g. For instance, Delhis underground will have 100 stations in three years time and this is the target group most coveted by advertisers, and media houses are already launching publications to tap into this bunch.
4.8.2. MAGAZINES
Niche is the watchword here A spate of new launches is expected, with almost a dozen global players planning India editions. The market Niche international titles are flocking to India and not to be outdone, local publication houses are launching targeted special interest titles to cash in on the advertisers liking for suitable editorial environments for their brands The future The market is expected to see a spate of new launches in the coming months, with almost a dozen global players planning to launch India editions.
4.8.3. TELEVISION
Television is one medium that has surprised even the media pundits and delivered higher growth than expected. As newer channels are launched and fragmentation continues, we expect similar growth in the coming year. The market 2007 witnessed the launch of over 30 new channels across genres. Advertisers in these categories value impact as much as cost efficiency in their choice of media and believe that TV is more suited to their lifestyle approach to advertising. Regional/niche channel launches have, however, helped in expanding the market by reducing the entry cost for many advertisers from categories like real estate, retail, education and dot-com. The future The key drivers for this growth will be: Launch of new channels and the resultant audience fragmentation leading to higher cost per contact. Increased launch activity by advertisers in sectors like cellular service, DTH (direct-to-home), personal finance and FMCG. New channel launches will reduce the entry cost for first-time advertisers who will increasingly sample the medium.
4.8.4. RADIO
A dream come true for retailers. The entry of FM channels into smaller markets will increase the reach of the medium The market Radio has become the integral part of many campaigns.
The top categories contributing to the growth of radio are banks, financial institutions, telecom, retail, media (TV channel promotions and films), auto, real estate and IPOs. Radio has become a retailers dream come true and almost 70% of the deals are tactical in nature (linked to brand promotion rather than brand building).
The players
Radio channels with the highest number of operational stations are Radio Mirchi with 32 stations, Radio City with 16 stations, Big FM with 44 stations and My FM with 17 stations.
The product
Today, 70% of the total radio revenues come from spot buys and activations (1012%) and innovations (18-20%) bring in the balance.
The audience
The primary target group for radio is the 18-34 age group.
The future
This growth would be driven by: Entry of FM channels into smaller markets. Multiple ownerships of channels in the city will help networks in providing station bouquets covering different target segments.
4.8.5. OUTDOOR
Its a market waiting to take off, with site owners, such as airport authorities, realizing the potential The market The city beautification drive by the metropolitan corporations is causing a rationalization of larger format OOH (out-of-home) media such as hoardings. Interestingly, there is a rise in development of smaller frequency builder and ambient OOH media such as pole kiosks and bus shelters, to name a few. Key advertiser categories such as automotive and financial services use OOH mediums tactically to lend support to local retail channels and dealerships. The future Advertisers dont seem to question its efficacy as they do for emerging media. The burgeoning of mall spaces as well as the modernization and expansion of existing infrastructure is bound to increase over the next five years when there would also be new Airports built too.
4.9.2. CINEMA
Cost effective and high impact Advertisers can effectively showcase their brands against an entertainment backdrop The strong growth of cinema in India in the last five years has implications not just for film producers, distributors, audiences and cinema hall owners, but also for advertisers reaching out to film-going audiences. There is no time delay in the advertising message reaching even the smaller towns. Cinema advertising is finding easier acceptance in the media plan for many brand categories. Advertisers use cinema to effectively showcase their brands against an entertainment backdrop and access the star power that drives consumers to theatres. Even though cinema has lower reach than TV, it is a far more cost effective and high impact medium.
Organized retail is booming in India and as a result, retail media is beginning to take a more definitive form and has grown by 50% from a Rs150 crore medium in 2006 to Rs.225 crore in 2007. Retail media in India currently consists of traditional options such as facades/show windows, static media in stores such as standees and drop-down banners. In addition to these, retail television and store magazines have emerged as popular mediums. Activation/contests (including kiosk/promoters/sampling, etc.) have become effective modes to increase interactivity and engage the consumer. These options are available in destinations such as malls, quick service restaurants (QSRs, including coffee chains), department stores, music stores, supermarkets, cinema (excluding screenings) and other locations such as consumer durable chains and health and wellness chains. The players Future Media India Ltd is one of the early movers in this space with a pan-India retail media offering across formats. Other key players in the retail media space are department stores like Shoppers Stop, coffee chains like Caf Coffee Day and music outlets like Planet M. Advertising expenditure on retail TV is expected to increase by 300% by the end of 2008. The future Possible drivers of future growth:
Use of technologies like video mining and RFID (radio frequency identification) by retailers and vendors would help to customize offers for consumers and also put metrics in place for advertisers.
5. MONEY REFUNDS
Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer. Customers often view these schemes with some suspicion particularly if the method of obtaining a refund looks unusual or onerous.
PART - A
SWOT ANALYSIS FOR THE LOOT
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT). SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.
SWOT ANALYSIS In SWOT, strengths and weaknesses are internal factors, whereas opportunities and threats are external factors. SWOT for LOOT STRENGTHS LOOT knows its home market well and has already reacted to changing competitive conditions in it by opening its own discount stores. It has a very New Innovative concept of offering discounts throughout the year. It has a diverse range of retail outlets with national coverage.
It is a store of Value for Money. A wide range of different brands all under one roof. Complete outlet with the right mix of apparel, from semi-formals to casuals, for both men and women, along with sportswear, footwear, accessories and kids wear. LOOT is a very profitable organization, earning Rs. 52 crore in the financial year 2007-2008.
WEAKNESSES Some of the locations of the stores are not at convenient places hence it has less fleet of foot compared to other retailers. LOOT reputation comes up only as a discounted store. As Loot is Opportunity Buyers, they sometimes might not get Customers the right size they are looking for. LOOT is one of the largest retail chain, despite its IT advantages, could leave it weak in some areas due to the huge span of control. OPPORTUNITIES LOOT has been doing well in terms of adding new premium products. Extending this range further promises more customer loyalty. A developing market such as Internet, i.e. by creating its own website, blogs and groups would create Brand Awareness. Loot could also look in future in extending its range from accessories, designer wears to even home furnishing. Promoting its Private label range, would increase its awareness in addition to bringing higher margins of profits.
Franchising would help in fast expansion of these stores and can counter the threat posed by other retailers. As Brands are recognized internationally, market brings in lot of scope for future expansion plans.
THREATS Larger competitors ready to challenge Loots now overly dominant position. There is still potential for other international players to move into the Indian market, which could challenge Loots position in the long run.
PART - B
FINDING COST EFFECTIVE METHODS MARKETING FOR THE LOOT 5B.1. FREE STUFF
To promote the goods in the store by giving freebies along with the purchase up to certain predefined amount. It can be any accessories like bottles, ear tops and caps. This not only provokes the buyer to purchase the goods worth the amount but also helps in clearing the slow moving stocks in the store
E.g. Eccentrics bottles or umbrellas, deodorants free on a purchase of goods worth
Rs.1000 and above. Distribute specialty products such as pens, diaries or mugs with our store's logo. Kids are very fond of toys and gifts. They get really happy when they receive a toy in any form. E.g. A coloring book, fancy pencils and small toys to even tattoos, all these can be used to promote our kids collection section. E.g. Toys related to a specific movie release.
5B.2. COUPONS
Coupons should motivate the consumer to not only purchase the product but to take notice of the brand. Coupons are used to Entice Return of Former Customers It can generate a short-term boost in traffic to most retailers. Only a small portion of coupons may actually be redeemed, however establishing brand awareness is one of the long-lasting effects of a coupon promotion.
Evaluating the method the coupon is delivered along with the coupon response, product sales and profits can help determine which promotion or coupon works best with the audience. E.g. Customers can be issued coupons of worth say amount Rs.100 on a purchase of say Rs.1000 which they can redeem on their next purchase. Discount Coupons are very popular among youth; they can be easily distributed in colleges and other hang out places like cafes, restaurants and pubs.
5B.4. CONTESTS
Solve questions and you win something. E.g. Euro Cup Contest, Cricket. These days a lot of shows like Indian Idol, Lux Junoon are seen on TV, they are very popular among youth, people are very crazy of these shows; they themselves form good contest questions.
5B.5. SWEEPSTAKES
They depend on luck. A Lucky draw could be arranged in the store. E.g. Fill this form and earn a chance to win exciting gifts.
5B.7. FLYERS
Flyers can be a cheaper option compared to other means of advertising. Flyers should be very attractive and colorful They should be designed to grab the attention of the people. E.g. Flyers can declare in bold its offers and discounts that they cant miss; it should be such that people bound to visit our store and prevail it.
5B.9. SMS
SMS advertising is the latest and the most popular form of advertising. Through SMS one can reach the target customers directly. E.g. Recently, a trend of Color SMS has been started, where the logo of the company will appear as it is, at the end of each SMS one forwards. This would help LOOT to create Brand awareness among youth as well as other target customers.
5B.11. ALLOWANCES
It is promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way. E.g. Promoting RED TAPE, NIKE, PUMA and other brands and earn certain revenue in return.
5B.12. ONLINE
5B.12.1. Building presence online through a website A website is essentially your shop window online, so it is important that visitors can quickly and easily find the information they need. An online presence would create awareness about Loot on a mass scale; as Internet is gaining importance day by day. 5B.12.2.Advertise online Social networking and other community sites are generating a lot of interest at the moment. E.g. Blogs, Communities, groups would just make wonders for LOOT, Creating Loot Communities on Orkut Creating these groups, and through various forums people can easily give Loot its feedback. 5B.12.3.Develop an e-marketing plan Asking visitors to register on your site is an incredibly useful way of finding out more about them. E.g. If Loot has a customer's email address and if they have indicated they would be interested in receiving information from you, Loot could start to target them with special offers, an e-newsletter or future product information 5B.12.4. Updates & Maintenance Once we've built our site, it needs constant maintenance and monitoring to ensure you stay visible in search engine rankings and you provide information that entices customers to return.
5B.13.4. Loot Platinum card Membership Card - Card can be given to customers who purchase goods worth at least Rs.15000 & above. - In addition they would get reward points on every next purchase. - When they reach certain level, they could be awarded with the next level membership. Members can earn 2 points on every Rs.100 they spend an can redeem say up to 100 points and get Rs.100 off on next purchase after a certain pre-decided period only. Gold and Platinum Card Shoppers would also be prevailed with an additional discount of Rs.5% and 10% respectively on every purchase they make above Rs.1000.
5B.14. EVENTS
Events can gain a lot of popularity and publicity. They can be targeted for customers of any group age. E.g. Events can be in-store level E.g. Womens Day Celebration that we had in our store in March; New Year Bash Celebration; Childrens Day; Independence and Republic Day are some others. Events could also be held in partnership with a discotheque or a pub. E.g. The Best dancer could win gift vouchers from The Loot Organizing Fashion Shows at college level during their college fest could promote our clothes line, popularity and increase Brand awareness. Being a part of the below events will create awareness at an Inter-collegial level
5B.16. TV SERIALS
Advertising on TV can be a costly affair. Instead TV serials can work well; where the space of the stores can be easily leased out to the production house and in place of that Loot would get a spot on TV. E.g. Popular TV Serials include Dil Mil Gaye which is quiet popular among youth on Star One. Kuchh iss Tarahh on Sony TV which is again popular both among youth and working class.
5B.17. BARTER
Bartering goods and services with other businesses. Try to trade for something before you buy it. Barter deals usually require little or no money. E.g. To barter with a radio station i.e. holding up a contest with the radio channel and giving vouchers to the listeners, in-return playing their radio station at all our outlets.
Even special paid advertisement screen are shown before the movie runs or during intervals can also be targeted. E.g. we can also benefit if we lure our customers to win Free Tickets for a movie on a purchase of goods worth a predefined amount. The customers, who find this offer tempting, may loosen their pockets a little more than pre-planned. Barter deals can also be worked against them; cinema halls can do their movie screening posters at our Stores while Loot showcases its schemes and discounts on their screens.
Loot is quiet successful in Building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
PART - C
SALES PROMOTIONS
INTRODUCTION
Sales promotions have become a vital tool for marketers and its importance has been increasing significantly over the years. In India, sales promotions expenditure by various marketing companies is estimated to be Rs. 5,000 crores and the emphasis on sales promotion activities by the Indian industry has increased by 500 to 600 percent during the last 3 to 5 years. Given the growing importance of sales promotion, there has been considerable interest in the effect of sales promotion on different dimensions such as consumers price perceptions, brand choice, brand switching behavior, evaluation of brand equity and effect on brand perception and so on. One of the purposes of a consumer promotion is to elicit a direct impact on the purchase behavior of the firms customers Research evidence suggests that sales promotions positively affect short-term sales Research on price promotion has consistently reported high sales effect and high price elasticity for brands which are on promotion. Amongst the elements of marketing mix, sales promotions have long-term influence on brand equity buyers suggest that monetary and non-monetary promotions are useful to create brand equity because of their positive effect on brand knowledge structures.
METHODOLOGY
The study was based on primary data derived through sample survey using pre-tested structured instrument (questionnaire). The instrument consisted of questions pertaining to experience in availing schemes, interest in schemes, perception about the scheme etc. The questions were framed such a way to identify different types of sales promotions and the perception of the customers, whether the scheme would be recommended in future.
5C.1.3. Inference:
Sales and footfalls remained the same at all stores. The excitement of the Euro Cup could have been pepped up, if the Winning gift was known.
5C.2.3. Inference:
The Scheme did work well for stores like Sion & Marine Lines, so similar promotional activities could work great for such outlets. These stores were successful in increasing the footfalls of women customers and sales of womens clothing. The Customers at Vashi Store were not interested, as they were not willing to travel all the way to Andheri, for the event. Nor did they like the Treskeen Salon vouchers that were offered, again they felt it was worthless traveling this far. The Andheri Store does not have many women walk-ins, the scheme too did not attract many customers.
No. of Pieces Sold for Puma Before and After Sale Posters 200 No.of Pieces 150 100 50 0
em bu M r ar in eL in es Ba nd ra M ah i nd he ri m
Before After
Ch
Stores
NET INCREASE IN THE NUMBER OF PIECES SOLD CAN BE SEEN IN THE FOLLOWING GRAPH.
Percentage
Net Increase
Stores
5C.3.2. Inference:
The above figures clearly speak for themselves that Puma Discount offers have done stunningly wonderful in all the outlets. The Sales and Footfalls have also increased considerably at all the outlets. Puma Offers are very simple yet attractive and hence they have been successful in pulling in the customers. Promoting other Brands in future could prove to be very effective from both Marketing as well as operation point of view.
This Scheme however, if introduced at a slightly earlier time than other stores, it might have proved to pull in more walk-ins as till then we would be the first to enter the race of offering great discounts on Big brands.
5C.4.3. Inference
A message should be sent across all stores on the genuineness of the scheme. The scheme has not proved to be very successful in increasing the ticket size.
5C.5. RANK THE BELOW IN ORDER OF THE FASTEST TO THE SLOWEST SELLING ITEMS: - Mens Denims, Mens Shirts & T-shirts,
Womens Tops & t-shirts, Womens Denim, Shoes & Accessories. The Ranks given by most of the stores were in the following order. 1> Mens Denim 2> Mens Shirts and T-shirts 3> Womens Denim 4> Womens Tops & T-shirts 5> Shoes & Accessories
The Distribution of Flyer activity did not seem to be a success, as the hit ratio turned out to be nil in spite of the vast distribution.
The above figures state that the flyers have gone unnoticed in the eyes of our dear customers. Schemes on flyers may not have been very attractive. Flyer distribution in future should be well reflected upon before putting in action.
5C.7.2. FREE GIFT This was the Scheme that Loot offered to our customers. I.e. On Purchase of Rs.1500 & above Free cap Rs. 2500 & above - Free T-shirt Rs. 3500 & above - Free Bag This scheme created quite an excitement among the customers as they liked the free gifts and were ready to increase their ticket size to avail this scheme.
5C.7.3. Inference
Free Gift is more beneficial in terms of sales, as customers are willing to increase their ticket size if they find the gift attractive. Customers at all stores preferred Cash Discount over Free Gift.
However, both play an equally important role : With Cash Discount we can expect Customer Loyalty and with Free Gifts, we can persuade the customers to increase their ticket size. Thus both these schemes can directly or indirectly increase sales.
CHAPTER 7 LIMITATIONS
LIMITATIONS
There are always some shortcomings in a survey. A few errors may have occurred in spite of efforts to avoid the same. The Survey is only limited to Mumbai outlets. Researcher found lack of time for completing the survey. The time period of the project is 8 weeks, which may not be enough to understand the whole market. Some of the answers by respondents were very biased. Different views are observed from customers of the same area and in such cases, analysis was difficult. The respondents in the survey may not be true indicators of the population in that area, so result of analysis may vary accordingly. The findings of the research hold true only for the particular time period when the research was done.
CHAPTER 8
RECOMMENDATIONS
RECOMMENDATIONS
The following recommendations may possibly prove to be beneficial for Loot to improve its present customer base as well as increase its awareness.
The Loot should start offering Membership Cards for all its Customers. This would ensure Customer Loyalty. And an opportunity for all the loyal customers of the Loot to get added benefits in the form of points, rewards or discounts.
Promoting Cash Discounts & Freebies for the customers have proved to be a success for all operational stores. E.g. Buy 1 Get 2 Free, Buy 3 get 5 Free, Buy 5 Get 7 free. E.g. Freebies like Cap, deodorants, towels, T-shirts, bags etc.
Loot should promote its in-house brands, which will help the company to create its presence in the market and thus prove to aid maximum buys, winning higher margins of profit.
While promoting any event the area specificity and the target audience should be aimed at very specifically.
CHAPTER - 9 CONCLUSION
CONCLUSION
The Loot is reached its Growth Stage. More Players have entered the market, fuelling overall growth. Advertising & Promotional Spends are bound to increase in order to create Brand Awareness & Brand Building. Creating brand line extensions, Innovating new products and making use of different value adds: would prove to be beneficial. Making use of methods of promotion that are persuasive and which have a nature to create brand preference are the best gears.
ANNEXURE
BIBLIOGRAPHY References: http://www.livemint.com/2008/04/20235752/A1EC8C62-2DE9-4D6D-9E7C9B8670B66420ArtVPF.pdf http://www.warc.com/LandingPages/Generic/Results.asp?Ref=210 http://retail.about.com/od/marketingsalespromotion/Marketing_Sales_Promotion. htm www.nielsen.com. http://www.warc.com/LandingPages/Generic/Results.asp?Ref=210 www.adexindia.com http://retail.about.com/od/marketingsalespromotion/a/marketing_ideas.htm http://www.mjcopywriting.co.uk/images/meritus/Retail_Canada_store_visit.pdf http://www.rediff.com/money/2003/oct/17malls.htm www.wikipedia.com http://marketingteacher.com/Lessonstore.htm
ii.
iii.
Did your sales and footfalls increased, decreased or remained the same during that period?
Somewhat increased
Decreased
ii.
Did the customers show interest in filling up the lucky draw forms for Womens day event?
Yes
No
somewhat interested
iii.
Did the customers show interest in redeeming the Treskeen Salon Vouchers given to them while billing?
Yes
No
Cant say
If No, what was the reason? Not interested Found it expensive Travelling issues
iv.
Did your sales & footfalls increased, decreased or remained the same during the period?
Somewhat increased
Decreased
C. Puma Discounts
i. Yes Did the Puma Sale posters attract customers? No cant say
Did you find increase in footfalls during the discounts? No Somewhat increased Remained the
iii.
Was there any change in your sales? Decreased Remained the same
Increased
iv.
Please specify the no of pieces of Puma Sold before the discounts were put up?
v.
Please specify the no of pieces of Puma Sold after the discounts were put up?
ii. Yes
Were the customers willingly to filling up the forms for Club Mahindra? No Somewhat yes
iii.
______________________________________________
iv. Yes
Did your ticket size increase while the offer was on? No Remained the same
E. Rank the below from one to five in the order of the fastest to the slowest selling items in your store.
Items Mens Denim Mens Shirts & T- Shirts Womens Denim Womens Tops & T- Shirts Shoes & Accessories Ranks
F. FLYER ACTIVITY
i. Please Specify the no. of flyers distributed and returned during the period 20th June08 to 20th July08, ( 1 month) from your store? Flyers Distributed: ______________ (in numbers) Flyers Returned: ______________ (in numbers)
Cash Discount ii. Yes iii. Yes If No, Please specify why?
Did the free Gift offered help increasing the ticket size? No Somewhat yes
________________________________________________________