SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Current Trends Survey& Suggestions

Submitted by Group#5
Ilhan KHAN, Gaurav LALWANI, Ravi RAMCHANDANI, Shubhangi SARAF, Kanchan TIWARI, Mathilde DURAND, Marie GUILLEMOT, Ankit SETHI

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Objectives Trade Survey Introdution Approach Current Trends Introduction Survey& Suggestions

Shopping Mall [shop-ing mall] Noun A large retail complex containing a variety of stores and restaurants housed in a series of connected or adjacent buildings or in a single, large building.

Shopping Malls (India)

Neighborhood Centre

Community Centre

Regional Mall

Super Mall

Area: 42,000 - 210,000 sqft Number of anchors: 1 Anchor Type: Supermarket Primary Trade Area: 2 3 km

Area: 1,40,000 - 490,000 sqft Number of anchors: 2 or more Anchor Type: Discount Departmental Store, Supermarket, Home, Apparel Primary Trade Area: 3 5 km Infiniti Mall, Andheri

Area: 500,000 - 1,120,000 sqft Number of anchors: 2 or more Anchor Type: Full Departmental Store, Hypermarket, Fashion, Apparel Primary Trade Area: 4 -12 km High Street Phoenix, Parel

Area: 1,120,000 + sqft Number of anchors: 3 or more Anchor Type: Full Departmental Store, Hypermarket, Fashion, Apparel Primary Trade Area: 6 -25 km

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Objectives Trade Survey Introdution Approach Current Trends Introduction Survey& Suggestions

Special events and promotions

Mall specific Sales Promotions Cultural/Theme based events Mall wide sale

SALES PROMOTION PROJECT

January, 14th 2013

Conclusion Introduction Objectives & CustomersTrends Objectives Trade Survey Introdution Approach Current Survey& Suggestions Approach

Our Objectives:
1. To establish a relationship between various demographics and deal proneness 2. To get an understanding of the Malls and the Stores attitude towards promotions 3. To establish the affinity of Consumers to Sales and Discounts

Our General Approach :

Approach Primary Consumers Traders Secondary Internet Magazines

Questionnaires were floated and filled by around 50 people

Direct interviews with certain store managers

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Current Trends Approach Survey& Suggestions

The Customers Questionnaire :

1. Demographics

2. Importance given
to different Sales promotions

3. Affinity to Promotions

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Survey Trade Current Trends Survey& Suggestions

Trade Survey :
2 mastige brand, 2 luxury brand and 1 premium brand and multi-brand retail stores interviewed Sales Duration Discount Offered Sales/Footfall Increase Communication mode to existing customers Mass media

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Survey Trade Current Trends Survey& Suggestions

Parameters
Sales Duration No fixed period Depends on Stock Globally decided Not Fixed Try to change every year Jan to Feb Twice a year Globally decided 45 Days Twice a year One Month Twice a year One Month Twice a year & on local festivals Twice a year Sale continues till stock lasts

Discount Offered

40-50% discount Gradually increases to 70% 80-100% increase in footfall by Messages to existing customer Ads in print & internet

30-40% discount

Usually flat 50% This year in multiples of 13 (13, 26,39..) 20-30% increase in footfall Messages to existing customer Catalogues

30-50% Discount increases gradually Increase of 4050% in footfall & 20-30% in billing Messages to existing customer Ads in print & internet

10-70% discount Discount increases gradually 30-40% increase in footfall Messages to existing customer Ads in print & internet

Increase in Sales & Footfall

Not disclosed

30-40% increase in footfall Messages to existing customer Ads in print & internet

Communication

No comm

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Survey Trade Current Trends Survey& Suggestions

Retail

A Premium Multi-Brand Store, Madura Group

Each salesman has its own clientele list and is responsible for all the business from them Publishes catalogue of the latest collection Has a preview for loyal customer a week prior to when the Sale starts This year(2013) the discount offered are in multiples of 13 (13%, 26%,39%..) Minimalistic boards of Sale & percentage of Sale on individual products is nowhere mentioned Send gifts such as passes for a customers favorite club on his Birthday/Annivarsary Private Labels are never on Sale

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Survey Trade Current Trends Survey& Suggestions

Most Successful Sales Promotion: Flat 50% Sale

ATL activities: Publish in Leading newspaper and Internet

Decision to offer Sale made from Global HQ

Existing loyal customers are informed through Messages and Personal Calls in Week 0

Stores opens the Sale to people at large

Franchise take a call to extend the Sale beyond the normal period

Increase discount gradually as the Sale season progresses

May advertisements promotions in newspapers

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Survey Trade Current Trends Survey& Suggestions

Comparison between high end mall and mid size mall:

No loud sales promotion / communication inside mall premises

Huge sales promotion banner display in mall

Sales promotion activities are done independently by the stores

No activity by the mall to promote shopping

Close coordination with brands in sales promotion activities

Special days like Infinity mall on 50% off

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Customers Trends Current Survey& Suggestions Survey

Demographic Analysis
Age
40 20 44%
18-25 26-35 36-45 46-55 Male

Gender

56%

Female

Occupation 8%
30%
Business Service House Keeper Student

Family Income
30 20 10 0

10%

52%

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Customers Trends Current Survey& Suggestions Survey

Deal Proneness
Do you wait for sales promotion?
4% 26% Can't say

Do you buy more during sales promotion?

4% 8% Can't say No 60% 28% Sometimes Yes

40%
30%

No Sometimes Yes

Do you switch Brands during sales promotion?

4% 40% 20% 36% Can't say No Sometimes Yes

78% of the people surveyed either buy a brand on deal or prefer to wait to take advantage of the same

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Customers Trends Current Survey& Suggestions Survey

Deal Proneness & Demographics

Age

Income

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Customers Trends Current Survey& Suggestions Aspects

Deal Proneness & Demographics

Occupation

Gender

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Customers Trends Current Survey& Suggestions Aspects

Deal Preference
Population
60% 50% 40% 30% 20% 10% 0%
Contests Lucky draw Loyalty programmes

Buy One Get One free

Free gift Exchange offer Refunds/Cash Back

Discount

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Customers Trends Current Survey& Suggestions Survey

Hypotheses Testing
H0: There is significant relationship between consumer attitude toward cash discount offers and age groups.

H0: There is significant relationship between consumer attitude toward cash discount offers and free gift.

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Introduction Objectives Trade Survey Introdution Approach Customers Trends Current Survey& Suggestions Survey

Hypotheses Testing
H0: There is significant relationship between mall loyalty and coupon offers.

H0: There is significant relationship between deal proneness and income group.

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Conclusion Introduction Objectives Trade Survey Introdution Approach Current Trends Survey& Suggestions & Suggestions

Suggestions : Increase Malls Management

Data Collection & Analysis: in order to make a targeting as relevant as possible Loyalty Program: to attract and retain customers, and add extra value to their shopping experience Specific promotions from the mall itself (regardless of brand promotions strategies) : i.e coupons check book Communication through Malls Brand : to make customers more conscious about mall sales promotion

SALES PROMOTION PROJECT

January, 14th 2013

Customers Conclusion Objectives Trade Survey Introdution Approach Current Trends Survey& Suggestions