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In partial fulfilment of the requirements for the award of MASTERS OF BUSINESS ADMINISTRATION (M.B.

A) Submitted to:
Prof. Divakar Joshi
(H.O.D. Management)

Submitted by:
Kushak Kumar
Roll No.:7045224080

MBA-IV

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CERTIFICATE
This is to certify that the project work titled Effectiveness of Promotional Strategies in Reliance Fresh is a bonafide work done by KUSHAK KUMAR for the award of MASTERS OF BUSINESS ADMINISTRATION (M.B.A). i conducted my project under guidance of Mr. Divakar Joshi.

Date:

Project Guide
Prof. Divakar Joshi (H.O.D. Management Studies)

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ACKNOWLEDGEMENT
It is indeed a human element to say thank you to those who are either inspiring or have been catalysts in producing a meaningful existence. As the researcher, I would like to acknowledge my profound gratitude to one and all who has been a part of this project in various ways/ forms/ levels. Categorically, I deem it an opportunity to express my gratitude to towards RELIANCE FRESH RETAIL, Mr. JASPREET SINGH , Manager, CHANDIGARH and Mr. Divakar Joshi, Faculty Guide for providing an opportunity to dwell into the understanding of the project. I express my sincere gratitude to Dr. O. N. Kapoor for providing me this window of opportunity. I would like to express my sincere gratitude towards all colleagues in RELIANCE FRESH RETAIL, CHANDIGARH & all respondents of my research who have given me their precious time & view, without their contributions this project would not have completed. KUSHAK KUMAR

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Executive Summary
This report has studied the various promotional strategies of Reliance Fresh which affects customers decision for purchasing products, and the first part of the study concentrates on the promotional strategies in RELIANCE FRESH RETAIL. The second part of the study concentrates on the study the effectiveness of promotional strategies that attracts customers. To determine the strength of Reliance and its brand. To study the convenience of promotional strategies.

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CONTENT
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Title Introduction Objectives of the study Need for Study Methodology Promotion Strategies Analysis and interpretation Findings Scope of the Study Limitations of the Project Conclusions Recommendations Questionnaire Bibliography

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Introduction

Introduction
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Traditionally retailing in India can be traced to the emergence of the neighborhood Kirana stores catering to the convenience of the consumers and era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission In 1980s experienced slow change as India began to open up economy. 1. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains 2. Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches 3. The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. 4. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. 5. Post 1995 onwards saw an emergence of shopping centers, a. mainly in urban areas, with facilities like car parking b. targeted to provide a complete destination experience for all segments of society 6. Emergence of hyper and super markets trying to provide customer with 3 Vs - Value, Variety and Volume 7. Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid. 8. At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. 13,000 crore

The big retail drive is on


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Companies like Reliance, Bharti and Subhiksha are in a race that is fuelling the real estate growth.Big retail is on a roll in India. Giants such as Reliance Retail, Bharti and Subhiksha are planning national roll outs of their retail outlets, with varying degrees of segmentation. As an industry, retailing could see investments of over $10 billion over the next three to four years and every crore of retail investment would see demand for 10,000 sq ft. Industry experts believe that even if only $2 billion of the projected investment materialises, it would mean that there would be a demand for almost 10 million sq ft in the next two to three years from retail alone. If all the planned retail investment happens, the space requirement would be 50 million sq ft. With organised retail contributing over 40% to the Rs 64,000 crore real estate sector in India, Gibson Vedamani, chief executive officer, Retailers Association of India says, Over the past three to four years, the growth of retailing and the demand of retailers has motivated the realty sector to aggressively look at developing properties for retailing, specifically malls. Earlier malls were restricted to just shopping centers but now malls are considered the right profile to cater to shopping needs under one umbrella. Each and every need of customers right from their footfalls to quick turnaround at the cash counters should be met so that customers do not have to wait for long in the queue

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especially during weekends. Well, this can be done when the number of cash counters in hypermarkets are increased at every store level. Reliance Retail Ltd, which operates 135 grocery retail chain stores called Reliance Fresh, has decided to invest Rs 25,000 crore by 2012 in its retail business. The investments would also be made in setting-up 400 small format durable outlets called Reliance Digital in rural and semi-urban markets. This will be the second major durable retailing initiative in the domestic market after competitor Tata Groups Infiniti Retail-owned Croma. According to a Reliance Retail executive, With rural markets already contributing 60% to the overall Cathode Ray Tube (CRT) TVs market, there is a good potential for categories such as music systems and DVD players to grow there. Reliance Retail, Bharti Retail and Subhiksha propose to serve all regular shopping requirements of an average Indian household. This will include all food and grocery categories, fresh fruits and vegetables, meat and poultry, dairy products, staples, FMCG and processed foods, electronics and appliances, clothing and footwear, furniture and furnishing, and other household articles. Bharti Retail will keep adding to the product portfolio in line with consumer aspirations, preferences and trends in the international market.

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Development of the mall industry depends on two key business sectorsthe real estate as well as the retail. The demand for new retail spaces will be spurred on by such new retail ventures. Also, such large-scale retail forays tend to change and modify the governing rules, norms and, in some cases, even the tax structures of a country. These contribute to catalyse the retail industry growth further into a virtuous cycle ensuring that the demand for retail real estate is even higher in the medium term.

Retailing formats in India


Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof.Examples include Shoppers Stop, Piramyd, Pantaloon. Department Stores: Departmental Stores are expected to take over the apparel business from exclusive brand showrooms.

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Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors. Hypermarts/Supermarkets: Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale

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or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. MBOs : Multi Brand outlets, also known as Category Killers, offer several brands across a single product and Metros. category. These usually do well in busy market places

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The Company

Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company
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also has plans to train students and housewives in customer care and quality services for part-time jobs.

Reliance Fresh recently (24th Jan, 2007) opened several "Fresh" outlets in Chennai, New Delhi, Hyderabad,Jaipur, Mumbai, Chandigarh, Ludhiana increasing its total store count to 40. Reliance is still testing its retail concepts by controlled entry beginning in the southern states

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According to Deccan Herald, the company is planning on opening new stores with store-size varying from 1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG products and dairy products. Each store is said to be within a radius of 1-2 km of each other, in relation to the concept of a neighbour store. However, this is only the entry roll-out that the company has planned. Bangalore is said to have 40 stores in all by the end of the year. In a dramatic change due circumstances prevaling in UP, West Bengal and Orissa, It was mentioned recently in News Dailies that, Reliance Retail is moving out stocking. Reliance Retail has decided to minimise its exposure in the fruit and vegetable business and position Reliance Fresh as a pure play super market focusing on categories like food, FMCG, home, consumer durables, IT, wellness and auto accessories, with food accounting for the bulk of the business.

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The company may not stock fruit and vegetables in some states, Orissa being one of them.

Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the company said the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farm-to-fork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. Reliance may exit some businesses If the business does not increases by March 2008.In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore, starting with Bangalore.
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According to reports, customers like the chain because the produce is generally fresh, the shops are air-conditioned and the prices are much lower than those of open-air markets or mobile vendors. These are sellers who trundle around neighborhoods with carts laden with vegetables and fruit. Residents enjoy the convenience of buying vegetables right outside their door. But the vendors and small shopkeepers fear they will not survive the Reliance onslaught.

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Because it buys in bulk directly from farmers, Reliance Fresh enjoys economies of scales, which it passes on to customers in the form of low prices and discounts. Vendors have to battle many odds. The supply chain is so inefficient that the produce they bring to the towns is not very fresh by the time it arrives. In fact, according to experts, about half the countrys food and vegetables rot before they reach the shelves or market stalls. India lacks cold storage and refrigerated transport all things Reliance has built for its new chain.

Reliance Fresh, a subsidiary of Reliance Industries, is investing $5.6 billion in hundreds of stores. The company, already Indias top private oil refiner and petrochemical maker, is at the lead of the large chain stores that are storming into Indian organized retail, which now makes up only about 5 percent of the retail market.

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The retail revolution in India is touching almost everyone. Indians are switching from small shops and open-air markets to shopping malls and supermarkets. Reliance is on the vanguard of this transformation. But Wal-Mart is coming soon, and two other supermarket chains Britains Tesco, and Carrefour of France are itching to enter the Indian market. The losers are likely to be the estimated 12 million Indians whose livelihoods depend on their small shops. The number of mobile vegetable vendors is not known.

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RETAIL PROMOTION:
Is broadly defined as any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm. The best promotion will include both long-term and short-term strategies for attracting the customers you want while making the most available profit. This will include the typical marketing system of the 4 P's. These are Promotion, Product, Price, and Placement - especially in retail stores.

Long-term strategies gradually build public awareness and tend to give your sales a gradual boost that is permanent in nature. These include basic advertisements and high profile activities. Short-term investment usually offer some sort of incentive and you can get an immediate boost in sales that is temporary in nature. These include discounts, offers, and gifts. Both strategies will build goodwill for you and your company and give your reputation some positive backing for future promotion. By using proper placement with search engines, you can receive both short and long-term results depending on the type of business and associating with similar businesses.

Steps in planning a promotion strategy:


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Goals are stated in specific and measurable terms. Positive word of mouth

(WOM) is an important long-term goal. 2 An overall promotion budget is set on the basis of one of these techniques:

all you can afford incremental, competitive parity, etc. 3 The promotional mix is outlined, based on the firms budget, the type of

retailing involved, the coverage of the media, and the hierarchy of effects. 4 The promotional mix is enacted. Included are decisions involving specific

media, promotional timing, message content, sales force composition, particular sales-promotion tools, and the responsibility for coordination. 5 The retailer systematically reviews and adjusts the promotional plan,

consistent with its preset goals.

Promotion Tools used in Reliance Fresh are:1. Premiums (gifts): Merchandise offered at a relatively low cost or free as

an incentive to purchase a particular product. A with pack premium accompany the product inside or on the package. A self liquidating premium is sold below its normal retail price to consumers who request it.
2. Frequency Programs: Programs providing rewards related to the

consumers frequency and intensity in purchasing the companys products or services.


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3. Prizes (Contests ,sweepstakes):prizes are offers of the chance to win cash,

trips as a result of purchasing something. A contest calls for consumers to submit an entry to be examined by a panel of judges who selects the best entries sweepstakes asks consumers to submit their names in a drawing.
4. Tie in promotions: to or more brands or companies team upon coupons

refunds and contests to increase pulling over.


5. Cross promotion: using one brand to advertise others non competing

brands
6. POP and Demonstrations: POP demonstrations and presentations take

place at point of purchase or sale.

7. Price off: a straight discount off the list price on each item purchased

during a stated time period.


8. Free goods: offs of extra cases of retail to customer who buy certain

quantity or size
9. Price packs: offers to the customers saving off the regular price of the

offered price. A reduced pack is a sold to product at single price. Banded


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Pack is two related products banded together such as tooth paste and tooth brush
10. Cash refund offers (refunds): provide a price reduction after purchase:

consumer sends a specified proof of purchase like bill.

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Objectives

Objective of the study


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Primary Objective
To study the promotional strategies in RELIANCE FRESH RETAIL.

Secondary Objectives
To study the effectiveness of promotional strategies that attracts customers. To determine the strength of Reliance and its brand. To study the convenience of promotional strategies.

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Need for study

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Need For Study


In the retail market, small changes can make or break you. This is what makes some people love owning retail stores and other people loathe it. Promotional strategies for retail are pretty unique. They really require a light touch, a sensitive eye, and constant attention to the smallest and most insignificant details.

Promotional strategy, in fact, encompasses almost every aspect of running and operating a store. When the market was good, you could afford to let little things slide. You could put off updating your retail displays, for example, or not use cutting-edge advertisements. It didnt matter there were so many customers that everyone was getting enough business to stay afloat. Nowadays, however, people are much more careful with their money. Using the most effective and the most cost-effective promotional strategies is crucial. Today when it comes to any business there are thousands of ways to promote it. The best thing to keep in mind, however, is we target demographic and investment requirements. Is Reliance Fresh trying to interest kids in your product? Does Reliance Fresh want to cater to the 40-50 year old crowd who visit retail stores?
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Much of Reliance Fresh promotion will be based on who exactly you are selling products? We find the effectiveness of promotional strategies for Reliance Fresh Retail.

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Research Methodology
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Research Methodology
Research Design: Descriptive In Nature
The research purely describes the current scenario of the Reliance Fresh, its potential and all the possible combinations of the market forces that attract the customers. And so the research is purely descriptive in nature.

Sampling:
Sampling area: Chandigarh Sec -18,19,22 Sampling size: 100 people Sampling structure: Shopkeepers : 25

Reliance Employees : 10 Customers : 65

Sampling method: Judgmental Sampling

Data gathering:
Primary Data: The primary data was collected using an interview schedule with the aid of structured questionnaire prepared with respect to the objective of the study.

Secondary Data: through internet, Company publications & Books.

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Analysis & Interpretation

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Analysis and Interpretation


1)What is good about Reliance fresh to attract the customers?
As per analysis service of the company is the most important factor for Reliance Fresh. That good service of the company is the major factor that attracts customer most. Factors attracting customer
35 30 25 20 15 10 % of 5 Respondents 0

Brand nam e

Service

Quality

Price

Factors Reliance giving both service and good quality as the same valuation. This shows that Reliance Fresh concentrates on service and good quality for selling its products. The best thing which emphasis the sales is the service and good quality because retail sector mainly sales their products by the service and good quality. The company has given maximum importance to the service then to quality and good brand name to 3rd place and 4th to prices
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2) Which promotional scheme attracts customer most

Frequency Programs Free Goods Coupons Price packs Product warranties Tie in promotions Sample Demonstration

The prime motive for the customer to spend less and get more benefits. The promotional schemes which attract customer most is Free goods and then in the
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2nd place they give priority to the frequency programs and then come the place of demonstration and sample and so on.

3) Expected services in Reliance Fresh

user friendly

Availability

Responsiveness

Cleanliness

presentation

The Reliance fresh is more user friendly than the other stores and here is lot of varieties of products be available. The presentation is good in reliance than others. The above figure shows customers easily know about the new

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Effectivness promotion

40 35 30 25 20 15 10 % of 5 0 Respondents

Yes No

Factors

promotional products and reliance is much responsive. The cleanliness is good also. This shows customers are satisfied with the promotional strategies.

4) Main company objectives:

Reliance Retail Objective


35 30 25 20 15 % of 10 Respondents 5 0 Brand image Sales turnover Profit

Objectives

For brand image of Reliance Fresh has given a high percentage for 1st rank with 62.5 %.

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Most of the respondents have given brand image by segment the first rank and at the 2nd place they had given to the sales turnover as the major objective of the company. 3rd objective is profit of the company.

5) Term of promotional schemes which are in demand Term of promotion


40 35 30 25 20 15 10 5 0 % of Respondents 1day 1 to 5 day 1 to 7 day

Days

The term of promotion are 1 day and 1-7 days are more acceptable in Reliance Fresh. Companys respondents about 70% have chosen it.

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6). what type of customers are frequently visiting the store?

Type of customers
50 40 30 20 10 % of 0 Respondents
Teenagers Old people Family

Teenagers

Old people

Family

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Mostly all the Retail given response that family is first priority and teenagers also then old people I 3rd place.

7). which are the most effective methods for

promotion generally used at reliance fresh ?

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Frequency Programs Free Goods Coupons Price packs Product warranties Tie in promotions Sample Demonstration

The effective methods used by Reliance fresh for promotion which attract customer most is freegoods, Frequency programs, demonstration. In second place sample then in the last price pack, product warranties and coupons.

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Findings

Findings
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As per analysis good service of the company is the most important factor for the sales it helps to promote other products by educate the customer about the uses of products. Brand image by segment is the main objective of the companies after that it comes sales and profit. So, for achieving major percentage of market share reliance are trying different types of promotional strategies to reach all types of customer of the society. The most effective methods used by Reliance fresh for promotions are freegoods, Frequency programs and through demonstration. The prime motive is to give the reliance fresh customer maximum satisfaction and value for their money. The duration of promotional strategies for 1 day and 1-5days are more preferable in Reliance Fresh to attract more customers. The Retail given response that family is first priority because they get all the materials under one shop, teenagers are in second place due to the status symbol and in last place the old people. So its necessary to target the family by making strategy according to it. The promotional strategies being review and monitor on the daily basis because according to the season, festival & other occasion.

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Scope of study

Scope of the Study


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1. The result of this research can be considered for using it in improved future growth. The scope of the study is limited to Chandigarh sec 18,19,22. 2. The scope of the project to assist Reliance Fresh retail to get an insight about promotional strategies which affect the decisions of customers. 3. This project would be useful for further causal and descriptive studies to formulate a scientific method of evaluation of the effectiveness of promotional strategies. 4. The study will help in improving the promotional strategies for the growth of Reliance Fresh retail and the convenience of the Reliance Fresh employees by these strategies.

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Limitations

Limitations of the Project


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When coming to the limitation of this project , the major limitation is that , when approaching a kiryana shop and speaking directly about there products they refuses to hear as it is a business where they are not suppose to reveal their shop details to strangers. So, we have to approach the kiryana shops as the customer who has to purchase products. There is large number of retail outlet in Chandigarh. Visiting to each outlet personally is not possible within a short period of time. So retail outlet has been selected on the basis of their potential sale. Only those outlets have been taken into consideration whose sale is considerably high. Since the questionnaire was a bit large, the customers was hesitating to answer as it would steal away their precious time. Since the sample size was small because of the time constraint, the results of the project cannot be expected to be accurate to cent percent. Since the shopkeepers are not literate in most of the cases it is difficult to get the answer of some very important question.

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Conclusion

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Conclusion
The size of the market has grown and the size of the middle class population in India is indeed vast and the existing player has tried to cover it. The opportunities before the players are therefore a plenty in terms of target audience. Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, reliance is aggressively working on introducing a panIndia network of retail outlets in multiple formats. A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. By creating value at all levels, reliance will actively endeavor to contribute to India's growth. The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and supplier.

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A true marketing organization pays attention not only to the communications, but also to the desired benefits of the product, its costs to the target audience, and where it will be available. Finally, the promotional messages must reach people where their ears are, not where the organization wants to place them. It is necessary to tweak the 4 P's for the convenience of the customer. From puppet shows to virtual reference, a true promotional strategy must be in place to optimize satisfaction of customer wants and needs. Promotional strategies should make customers feel special for shopping. Then they will come back again!

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Recommend ation
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Recommendations
1. Implementation of electronic system for the display of updated price. Due to day to day variation in prices the customer get confuse. 2. Proper display of the products because it is difficult to find a product by customer. 3. In Reliance Fresh there is a limited quantity of a product sometime customer does not get it so according to the demand the quantity be increase. 4. Free home delivery service being provide so that good public relations being happen. 5. Increase the size of store at the case of access material it is difficult to store the material. 6. Installation of games to the children so that they enjoy to come there again & again. Also toys being given to the children like a Mc Donalds.

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7. Use a electronic display for promotional schemes at the place of paper it helps to reduce the cost and it must be more attractive. 8. Adding variety so that customer does not go to other stores. 9. Create calendars of events it helps to promote the store. 10.Use Short messages (sms) for giving the information about the new schemes in the store. 11.Effective Promotion of Product is Business Cards & website. Through the website customer easily purchase a product online and also it boost the sale and promotion of the company.
12. Use the other promotional techniques like a new product launch then its

fragrance being spray in the retail shop so by fragrance attract by the product or it become a brand image in there mind.

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Questionnair e

Bibliography
Books
1) Kothare, C.R, Research methodology Second Edition, wishwar

prakashan, New Delhi (1997) 2) Malhotra Naresh K.,Marketing Research An Applied Orientation
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3) Kotler Philip,Marketing management11th Edition.

Website 1. www.google.co.in
2. www.reliancefresh.info/ 3. www.india-reports.com 4. www.business-standard.com 5. www.window2india.com/ 6. www.india-reports.com 7. www.globalfoodchainpartnerships.org

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