Adi Project on Loot

7/28/2019 Adi Project on Loot

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A PROJECT REPORT

ON

COST EFFECTIVE METHODS OF MARKETING

FOR

THE LOOT (INDIA) PVT. LTD.

BY

NISHA TANNA

UNDER THE GUIDANCE OF

PROF. MEENAL DHOTRE

SUBMITTED TO

UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD

OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

THROUGH

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE-48.


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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 recommendationsand 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.


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TABLE OF CONTENTS

SR. No. TITTLEPAGE

NUMBERS1. EXECUTIVE SUMMARY 1-2

2. SECTOR INTRODUCTION 3-7

3. COMPANY PROFILE 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

33-53

6. OBSERVATIONS & FINDINGS 54

7. LIMITATIONS 55

8. RECOMMENDATIONS 56

9. CONCULSION 57

ANNEXURE


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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.


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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.


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CHAPTER 2

SECTORINTRODUCTION


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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 orproducts 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.

2.2. INDIAN RETAIL

Retail is Indias largest industry, accounting for over 10 percent of the

countrys GDP and around eight percent of employment. Retail in India is at the

crossroads. It has emerged as one of the most dynamic and fast paced industries with

several players entering the market. That said, the heavy initial investments required

make break even hard to achieve and many players have not tasted success to date.

However, the future is promising; the market is growing, government policies are

becoming more favorable and emerging technologies are facilitating operations.

Retailing in India is gradually inching its way to becoming the next boom

industry. The whole concept of shopping has altered in terms of format and consumer

buying behavior, ushering in a revolution in shopping. Modern retail has entered India

as seen in sprawling shopping centers, multi-storied malls and huge complexes offer

shopping, entertainment and food all under one roof.

The Indian retailing sector is at an inflexion point where the growth of

organized retail and growth in the consumption by Indians is going to adopt a higher
http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Supply_chain


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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.

2.3 EVOLUTION OF INDIAN RETAIL

Exclusive BrandOutletsHyper/SuperMarketsDepartmentalStoresShopping MallsConcept Stores

WeeklyMarkets

Village FairsMelas

ConvenienceStores

Mom and

Pop/Kiranas

PDS OutletsKhadi StoresCooperatives

Traditional/

PervasiveReach

Government

Supported

Historic/

RuralReach

Modern Formats/

International

Source ofEntertainment

NeighborhoodStores/

Convenience

Availability/Low Costs /Distribution

ShoppingExperience/Efficiency


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2.4. ORGANIZED RETAIL ACROSS THE WORLD

2.5. KEY RETAIL GROWTH DRIVERS


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2.6. MODERN FORMATS

2.6.1. DEPARTMENT STORE

These are the general merchandise retailers offering various kinds of quality

products and services. It is a retail establishment which specializes in selling a wide

range of products without a single predominant merchandise line. Department stores

usually sell products including apparel, furniture, appliances, electronics, and

additionally select other lines of products such as paint, hardware, toiletries,

cosmetics, photographic equipment,jewelry,toys, andsporting goods.

2.6.2. SUPERMARKETS/CONVENIENCE STORES

It is a self-service store offering a wide variety of food and household

merchandise, organized into departments. It is larger in size and has a wider selection

than a traditional grocery storeand it is smaller than a hypermarket orsuperstore. The

supermarket typically comprises meat, fresh produce, dairy, and baked goods

departments along with shelf space reserved forcannedand packaged goods as well

as for various nonfood items such as household cleaners, pharmacyproducts, andpet

supplies. Most supermarkets also sell a variety of other household products that are

consumed regularly, such as alcohol (where permitted), household cleaning products,

medicine, clothes, and some sell a much wider range of nonfood products.

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
http://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Retailing#Retail_typeshttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Superstorehttp://en.wikipedia.org/wiki/Meathttp://en.wikipedia.org/wiki/Producehttp://en.wikipedia.org/wiki/Dairyhttp://en.wikipedia.org/wiki/Canninghttp://en.wikipedia.org/wiki/Canninghttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Pethttp://en.wikipedia.org/wiki/Alcoholic_beveragehttp://en.wikipedia.org/wiki/Medicinehttp://en.wikipedia.org/wiki/Clothinghttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Retailing#Retail_typeshttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Superstorehttp://en.wikipedia.org/wiki/Meathttp://en.wikipedia.org/wiki/Producehttp://en.wikipedia.org/wiki/Dairyhttp://en.wikipedia.org/wiki/Canninghttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Pethttp://en.wikipedia.org/wiki/Alcoholic_beveragehttp://en.wikipedia.org/wiki/Medicinehttp://en.wikipedia.org/wiki/Clothinghttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Retailing


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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.

2.6.4. DISCOUNT STORES

These are the stores or factory outlets that provide discount on the MRP items.

They focus on mass selling and reaching economies of scale or selling the stock left

after the season is over.It is a type ofdepartment store, which sell products at prices

lower than those asked by traditional retail outlets. Most discount department stores

offer wide assortments of goods; others specialize in such merchandise as jewelry,

electronic equipment, or electrical appliances. Discount stores differ because they sell

branded goods and prices vary widely between different products.

2.6.5. MULTI BRAND OUTLETS

The customers can easily bargain on the MRP. But most of the people think

multi-brand retailing is more viable option for the retailers and it is attractive from the

customers point of view as well. People can definitely go to the branded showrooms

to see the products; they can buy it even, especially when he wants any particular

product of any brand. Multi-brand retail outlet is more attractive from the consumers

point of view it gives customers option to as people will get more options to choose

from wide range of products and they will get it all under one roof.

2.6.6. SPECIALTY STORES/CONCEPT STORES

The retail chains, which deal in specific categories and provide deep

assortment in them are specialty stores. Examples are RPG's Music World, Mumbai's

bookstore Crossword, etc.
http://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Product_(business)http://www.naukrihub.com/india/retail/overview/retail-formats/http://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Product_(business)http://www.naukrihub.com/india/retail/overview/retail-formats/http://en.wikipedia.org/wiki/Department_store


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CHAPTER 3

COMPANYPROFILE


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3.1. THE HISTORY OF LOOT

The Loot is a multi brand discount store, offering customers a wide range of

products with discounts ranging between 25% to 60% off through out the

year.

The Loot offers the right mix of apparel, from semi-formals to casuals, for

both men and women, along with sportswear, footwear, accessories and kids

wear..

They showcase brands like Kappa, Bossini, Adidas, Nike, CAT, ID, Spykar,

Liliput, Giny & Jony, Disney, Ruff Kids, Lee Youth, W, Welspun, Puma,

Reebok, Fila, Umbro, New Balance, Van Huesen, Allen Solly, Arrow, Lee,

Lee Cooper, Wrangler, Pepe Jeans, Parx, Park Avenue, Colours, Blackberrys,

Riffle, Ragz Jeans, Recap, SF jeans, Thomas Scott, Red Tape, Marco Ricci,

Rifle and international brands like Banana Republic, GAP, Old Navy &

Mercedes.

New Arrivals include FCUK, Calvin Klein John Player, Excalibur, Flying

Machine, Barbie.

The LOOT is one stop-fashion destination showcasing global brands at

unbelievable prices for all brand freaks in the city.

The LOOT started in the year 2004 as a Value Retail format. Post the launch

and the stupendous success of the first store in the year in the year 2004. The LOOT

has set up 20 outlets, which are currently operational in the year 2005.The LOOT was

nominated in India Fashion Forum for the best value store in India: and in 2006. In

2007 Loot was nominated by Indian retail forum for Retail Design & Visual

Merchandising


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3.2. STRENGTHS OF THE LOOT

The LOOTs Strengths as a retailer lies in proper procurement and an

excellent supply chain management. This helps in getting better pricing from the

manufacturer and thereafter passing the benefit on to the consumer. The LOOT

currently offers the right of mix of mens and womens semi- formal, casuals, sports

category of garments, footwear & accessories, kids wear etc.

3.3. THE COMPANY HAS 4 MAIN FORMATS AS BELOW:

SMALL 1000 2000 Category Stores

MEDIUM 2000 4000Men/

Women/Footwear/Accessories

LARGE 4000 8000Men/


XTRA LARGE 8000 +

Men/


& 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.


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3.4. LOOT STORE LOCATIONS

The LOOT is currently Operational in 32 stores across India. The cities in green are at

a nascent stage.

Tier IDelhiBangalore(Marathalli)

BanshankariRajaji Nagar

Mumbai

Marine linesBandra

AndheriMaladParelChemburHughes RoadMahimLink Road -MaladSionMumbai Central

KalyanVasai

AndheriLokhandwalaSantacruz

Tier II

PuneAhmedabadNavi MumbaiSuratGoaPune AundhSolapur

BhopalTrivendrum

Patna

Pune (Fatima Nagar,M.G. Road, SataraRoad)

NagpurIndoreMangaloreBhopal

Tier III

NasikAurangabadMysore

JabalpurRaipur

JalandarAmritsar

JalgaonAmbalaBikanerAhmednagar

ShillongGuwahatiGuwhatiFaridabadGaziabadKutchVapiHubliBelgaum

Operational 35 storesIn progress 29 stores


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3.5. EXECUTIVE BOARD OF THE LOOT

3.5.1. MR.JAY GUPTA: MANAGING DIRECTOR

The man behind The Loot Mr. Jay Gupta was born in the village of Birganj,

Nepal, and after doing his schooling from Dr. Grahams School in Kalimpong,

Darjeeling. He graduated from S.I.E.S. College, Mumbai. Barely out of college, he

started his business in 1996, initially to get into the garment and footwear business by

opening some franchisees stores for brands like Colour Plus, Adidas, Nike,

Weekender etc. After exploring and researching various options, Jay zeroed in on the

idea of giving the best brands to the customers at the bet prices, all under one roof.

From this idea and value proposition, the concept of Indias first MULTI

BRANDED DISCOUNT CHAIN, WAS BORN. As many other pioneers who took on

the challenge of questioning paradigms, The Loot too was faced with innumerable

obstacles and skepticism in the initial stages. Slowly and steadily, after initial

problems, the concept was giving grudging respect & Appreciation by both customers

& business associates. With each passing day, Jays Appetite to fuel his desires and

ambitions further were driving him to try and achieve more than a single store

success. One became two which became three and then moved to multiple cities and

locations and faunally in a short span of 5 yrs, 35 Loot stores (approximately 160000

sq.ft. retail carpet area) have been set up throughout the country. Cities include

Mumbai, Navi Mumbai and Delhi, Nashik, Pune, Surat, Ahmedabad, Aurangabad,

Jabalpur, Raipur, Ludhaina and a shop in shop with Spencers Malad (Mumbai). The

LOOT has also signed an additional 60000 sq.ft., with stores shortly opening at

Jabalpur, Mysore, Chandigarh, Kalyan, Sonipat, & Kolhapur.


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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.

3.5.2. MR. RAJINDRA PAL CHHABRA: CEO

Mr. RajinderPal. Chhabra the CEO spearheads the Finance and Business

Development division of the chain.

A graduate of the Mumbai University, Mr. Chhabra brings along a wealth of

experience in strategic financial management, having spent 39 fruitful years in the

banking industry. He began his career in finance with the Reserve Bank of India,

where 17 years and then switched over to the Industrial Development Bank of India

where he rose to become the Chief General Manager before retiring in March 1998.

Prior to joining The Loot, Mr. Chhabra served as the Director of Garware

Chemicals and Garware Polyester, overseeing all operation of the plants, including

production, marketing, administration besides fianc and account. His expertise in

financial planning and managerial skills will certainly give thrust to The Loots

growth plan.


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Nominated by India Retail Forum

As per The Franchising World, The Loot is amongst the

Top 50 business opportunities (2008) in India

2005

2006

2007

2007

2007 For Retail Design and Visual Merchandising

For Innovative Concept

For Retail Marketing Campaign

As Value retailer of the year

As Value retailer of the year

3.6. BRAND AMBASSADOR

MR.GULSHAN GROVER

The Loot concept revolves around the villainous character who is a skilled

lootera and makes leading International and Domestic brands available at discounted

rates (up to 60%) to the consumers. Through this campaign, the Loot aims to leverage

the negative shades of Gulshan Grover to lure the consumers by influencing their

desire for great steals on Big brands.

3.7. COMPANYS USP

BUY 1 GET 1 FREE

365 DAYS DISCOUNT

UPTO 60% OFF

MINIMUM 25% IOFF

NO FAKES NO SECONDS

3.8. ACHIEVEMENTS

In 2005 won an award for the best performing store in India (adidas)


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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

3.10 BUSINESS CONCEPT & MODEL

The Loot is appropriately and uniquely positioned to meet this

proposition i.e. Quality at an Affordable Price.

Sourcing fromLow Cost

manufacturersand retail them

as private Brand

Sourcingsurplus

products fromnational &

InternationalBrands

Centralized

Warehouse

Sale tostores

Procurement

Sale at minimum 25% to

60% discounts on ActualMRP of BrandedProducts


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3.11. The LOOT sells 60 National & International brandsunder our roof


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CHAPTER 4

PROJECTINTRODUCTION


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OBJECTIVES OF THE STUDY

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.


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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).

Reminder

Pionee

ring

Competitiv

e

KindsOf

ProductAdvertisi

ng

4.2. Kinds of Advertising


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4.5. IT'S ALL ABOUT FOOTFALLS AND CONVERSIONS

Most malls today justify their rentals on the basis of "footfalls" (or the number

of people who visit the mall) and "conversions" (the number of the "footfalls" that

open their wallets).

One of the biggest challenges for retailers is determining the factors that drive

footfall into stores. The consultants have enabled the retailer to plan advertising spend

and predict the adverse effects of season and prepare promotions accordingly.

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.


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4.6. TYPES OF ADVERTISING

ABOVE THE LINE

Above the line (ATL) is an advertising technique using mass media to promote

brands. Major above-the-line techniques include TV and radio advertising, web and

internet banner ads. This type of communication is conventional in nature and is

considered impersonal to customers.

Above the line is a type of advertising through media such as TV, cinema,

radio,print, banners and search engines. It is more effective when the target group is

very large and difficult to define. But, if the target group is limited and specific, it is

always advisable to use Below the line promotions for efficiency and cost-

effectiveness.

THROUGH THE LINE

Through the line(TTL) refers to an advertising strategy involving both above

and below the line communications in which one form of advertising points the target

to another form of advertising thereby crossing the 'line'.

Example: A TV commercial that says 'come into the store to sample XYZ product'. In

this example, the TV commercial is a form of 'above the line' advertising and once in

the store, the target customer is presented with 'below the line' promotional material

such as store banners, competition entry forms etc.
http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Brandshttp://en.wikipedia.org/wiki/TVhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Webhttp://en.wikipedia.org/wiki/Advertising#Mediahttp://en.wikipedia.org/wiki/Tvhttp://en.wikipedia.org/wiki/Filmhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Print_mediahttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Search_enginehttp://en.wikipedia.org/wiki/Target_grouphttp://en.wikipedia.org/w/index.php?title=Through_the_Line_(advertising)&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Through_the_Line_(advertising)&action=edit&redlink=1http://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Mass_mediahttp://en.wikipedia.org/wiki/Brandshttp://en.wikipedia.org/wiki/TVhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Webhttp://en.wikipedia.org/wiki/Advertising#Mediahttp://en.wikipedia.org/wiki/Tvhttp://en.wikipedia.org/wiki/Filmhttp://en.wikipedia.org/wiki/Radiohttp://en.wikipedia.org/wiki/Print_mediahttp://en.wikipedia.org/wiki/Web_bannerhttp://en.wikipedia.org/wiki/Search_enginehttp://en.wikipedia.org/wiki/Target_grouphttp://en.wikipedia.org/w/index.php?title=Through_the_Line_(advertising)&action=edit&redlink=1


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BELOW THE LINE

Below the line (BTL) sales promotions are short-term incentives, largely

aimed at consumers. Below-the-line' promotion or communications, refers to forms of

non-media communication, even non-media advertising. Below-the-line promotions

are becoming increasingly important within the communications mix of many

companies.

Some of the ways by which companies do BTL (below the line) promotions

are by exhibitions, sponsorship activities, public relations and sales promotions like

giving freebies with goods, trade discounts given to dealers and customers, reduced

price offers on products, giving coupons which can be redeemed later etc.

BTL promotions are gaining popularity among all big companies nowadays

considering their effectiveness because of the "individual customer promotion" at a

price, which is much lesser than the normal media promotions.


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large and difficult todefine.

Target group is limitedand specific.

Cost Comparatively high Comparatively Low


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4.8. METHODS OF ABOVE THE LINE SALES PROMOTION

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.
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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.


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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.


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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.


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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 (10-

12%) 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.


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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.


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4.9. OTHER EMERGING MEDIA INCLUDE:

4.9.1 DIGITAL

Solutions that click with clients

Internet searches, networking sites and mobile services are becoming increasingly

popular

The market

The digital media, comprising Internet and mobile, is the fastest growing medium,

albeit accounting for only 2% of total media spends.

Most categories are using the medium for lead generation.

Advertisers are moving away from pure display advertising to Internet search as

the returns are measurable and, hence, it is easier to evaluate the efficiency of the

campaign.

The players

The key players can be categorized into search engines (Google), horizontal

portals (Yahoo and Rediff).

Sites like Orkut and Facebookhave become youth icons.

A lot of advertisers used these platforms to generate positive word-of-mouth.

The future

Social media is gaining relevance in building communities.

With the ever increasing demand for digital media and increase in spends by top

categories, Internet, search and mobile services are expected to grow in 2008 by

60%, 80% and 60%, respectively.


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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.

4.9.3. RETAIL MEDIA

Shopping for ad space?

Restrictions on OOH and the boom in organized retail are giving a boost to this

segment

The market


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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 toRs.225 crore in 2007.

Retail media in India currently consists of traditional options such as

facades/showwindows, 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:


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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.


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4.10.METHODS OF BELOW THE LINE SALES PROMOTION

1. PRICE PROMOTIONS

Price promotions are also commonly known as" price discounting". These can be

done in two ways:

1. A discount to the normal selling price of a product, or

2. More of the product at the normal price.

Alt Price promotions however can also have a negative effect by spoiling the brand

reputation or just a temporary sales boost (during the discounts) followed by a lull

when the discount would be called off.

2. COUPONS

3. GIFT WITH PURCHASE

4. COMPETITIONS AND PRIZES

This is an important tool to increase brand awareness amongst the target consumer. It

can be used to boost up sales for temporary period and ensure usage amongst first

time users.

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.

6. FREQUENT USER/LOYALTY INCENTIVES

7. POINT-OF-SALE DISPLAYS

Shopping habits are changing for the people living in metropolitan cities. People

prefer big retail outlets like Big Bazaar to local kirana stores. Most of the decisions of

buying are taken by the virtue of point-of-sale displays in these retail outlets.


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CHAPTER 5

DATA ANALYSIS&

INTERPRETATION

Part - A


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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 externalfactors.

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.


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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.


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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.


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PART - B

FINDING COST EFFECTIVE METHODS MARKETING FOR THE LOOT

5B.1. FREE STUFF

To promote the goods in the store by givingfreebiesalong 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 clearingtheslow 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 aspens, diaries ormugs with ourstore'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 toEntice Return of Former Customers

It can generate ashort-term boostin 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.


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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.3.SCRATCH CARDS

E.g. SCRATCH & WIN EXCITING PRIZES.

To Issue Scratch cards and win an assured prize. It can either be an additional

discount or a certain sum off or even a free gift.

Scratch Cards can also be Tied Up with a SMS company, where the no. on the

card would be sent as SMS to a mobile company and an SMS would be returned

back to the customers offering discounts.

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.


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5B.6 .POINT OF PURCHASE (POP)

E.g. Flags and Danglers can be used as an effective in-store promotion tool.

They can be used to attract the customers and speak out for themselves about the

various schemes and promotional activities in the store.

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 tograb 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.8. NGO ACTIVITIES

The Cash counter at our outlets could have a box labeled for a cause.

E.g. For Cancer Patients, Old age homes, Disabled children or even for an orphanage.

This would not only help all the needy people but will also help building LOOT in a

so called term Corporate Social Responsibility. This can be run throughout the year.

Get an Old pair of your clothes and Get a new one for a certain price less.

But it might be so, that it gets difficult at an operational level, in constraint to the no.

of clothes, getting the right weight and sufficient space.

Instead LOOT can organize it by:-

E.g. Get 3 Old pair of Jeans and Get a New 1 @ Additional 5% off* - The old clothes

would be given to a trustable charity.

-- Similar schemes can be done for old shirts, t-shirts, shoes etc. They can be run for a

week at least once in 2 or 3 months.


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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.10. WORD OF MOUTH

Indians still trust recommendations from others over any other kind of advertising,

making word-of-mouth advertising the most powerful tool in the industry today is

the cheapest form of advertising

Word of mouthbrings with it a big trust factor, which is quite often missing in

other forms of advertising.

So we have to make sure that the customers at Loot are fully satisfied with our

clothingline, ambience and of course ourservice.

E.g.Short-term incentives and the appropriate trainingto all the sales force

would encourage the purchase or sale of a product or service

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.


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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-newsletterorfuture 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.


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5B.13. LOYALTY CARD

Loot has made its presence throughout the country. Naturally every store has its

own customer base which is quiet huge to handle.

Here Loyalty Card can make such huge data handling simpler.

Loyalty Card will not only help in tracking our customers visiting any outlet at

any given point of time but will also help in trace the loyalty of the customers.

E.g. there can be 4 level memberships for our card.

5B.13.1. Loot BRONZE card Membership Card

- Card can be given to all customers who purchase goods worth at least Rs.1500 &

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.

5B.13.2. Loot SILVER card Membership Card

- Card can be given to customers who purchase goods worth at least Rs.4000 &

above



membership.

5B.13.3. Loot GOLD card Membership Card


above



membership.


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5B.13.4. Loot Platinum card Membership Card


above.



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; ChildrensDay; 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


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Malhar of St Xaviers

Umang of NM and other colleges.

5B.15. IN-FILM ADVERTISING

So far Loot has not been seen in any in- film advertisements. Though a lot of factors

depend on the success of the film and the star cast. If chosen well, Loot can easily

reach its target audience.

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 includeDil 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.


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5B.18. T IE UPS

5B.18.1. BPOs

BPO companies have easy provision of entrance for different age groups at

different levels, as well as they seem to be very beneficial for the crowd in

monetary terms.

A majority of age group between 20 35 years are their target.

Such a crowd is usually tempted with discounts or coupons in any form: Loot can

look forward in seeking some form of tie-up with these organizations.

5B.18.2. Coaching classes

Students these days are more regular at the coaching classes than at the colleges.

Some tie-up with the classes can be beneficial as we can directly hit our target

populace.

5B.18.3. Fast Foods Joints & Caf outlets

Fast food joints and other hits like Pizza hut, Dominos, Only Parathas, CCD,

Barista; they have become the hotspot and the frequent hangout places.

A Tie-up of some kind with these joints could prove to be a beneficial deal for

both.

E.g. We can offer the customers eating at the joints with Loot vouchers as well as

give Loot customers to win the vouchers to eat at these joints too.

Advertising of such kind would prove to create a lot of Brand Awareness for Loot.

5B.18.4. Cinema Halls

A lot of crowd is pulled at Cinema Halls. Putting Up Loot Posters; roll ups

outside them can help Loot gain a lot of attention.


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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.

5B.19. ROAD SHOW S

The Loot is quiet successful in running up store launch events with its new Brand

Campaign with Mr. Gulshan Grover as its Brand Ambassador.

The creative concept adopted by Bollywoods original bad guy Mr. Gulshan

Grover have created history in the various cities across India as he and his

entourage of bikers crash the barricading wall of The Loot cartons at the entrance

of the store.

The gang then proceeds to fill their gunny bags with goodies offered at

unbelievable prices

With its distinctive inauguration act is now become signature to The LOOT,

contrary to the mundane ribbon cutting. The LOOT display furthers the stores

integral message Great Steals on Big Brands.

This unique concept has helped Loot gain a lot of media coverage and popularity

as it is only one of its kind.

Loot should continue such launches in future too.

5B.20. PUBLIC RELATIONS


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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 offunfavorable rumors,stories, and events.

CHAPTER 5

DATA ANALYSIS&

INTERPRETATION

Part CStudy of Promotional

Schemes


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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.

OBJECTIVES OF THE STUDY

The specific objectives of the study were:

1. To examine the perception of customers on various sales promotion activities.


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2. To examine the differential effect, on the sales & footfalls.

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. EURO CUP CONTEST

5C.1.1. Description:

Customers were asked to fill a contest form, where they had to guess the country

that wins the Euro Cup football match.

5C.1.2. Response of Customers:

Most Customers at all stores willingly filled the forms.

Some store Managers faced difficulty, as the countries participating were

unknown to the customers.

The Winning Prize was unknown, so some of the customers were hesitant in

filling up the form.

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.


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5C.2. WOMENS DAY SCHEME

5C.2.1.Description:

Stores were decorated at all outlets; Treskeen Salon vouchers (Scheme 10%

discount at their salon) were distributed to customers who had a billing of

Rs.1200/ and above. Lucky draws were kept for free makeovers, hairstylist & hair

braiding, etc for all women winning the draw to be held on Womens Day and

Event was held at the Mahim store

5C.2.2. Response of Customers:

Sion store: The walk -ins at this store are usually women, hence this scheme did

wonders and the receivedgood response from women customers visiting the store.

Marine Lines Store: Women's walk-ins did see marginal increase.

Vashi, Andheri, MaladStores - Did not find any change in walk-ins.

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.


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5C.3. PUMA DISCOUNTS


Puma discounts had very attractive & eye catching posters at all the Loot Outlets,

offering discounts up to 50%.

Analysis of Puma pieces that have been sold is taken from the period as given below:

No. of Pieces sold from 1st July 08 to 13th July08, a span of2 weeks

i.e. before the Puma Discounts.

No. of pieces sold in the week from 14th to 20th July08, a span of1 week,

I.e. afterthe Puma discount offer.

No. of Pieces Sold for Puma Before and After

Sale Posters

0

50

100

150

200

Mahim

Andher

i

Chembu

r

Marine

Lines

Bandra

Stores

No.o

fPieces

Before

After


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NET INCREASE IN THE NUMBER OF PIECES SOLD CAN BE SEEN IN THEFOLLOWING GRAPH.

Net increase number of pieces sold

0

5

10

15

20

25

30

35

40

45

Mahim

Andheri

Chembu

r

Marine

Line

s

Bandra

Stores

Percentage

Net Increase

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.


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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. CLUB MAHINDRA OFFER


The Club Mahindra offered Loot customers exciting 3 days and 4 nights stay

at their resort. This offer was for the exclusively for all the Lucky Customers who

make the highest billing in the week.

5C.4.2. Response of the Customers

Many Customers were already members of Club Mahindra.

Customers across all stores doubted the credibility of the offer.

Customers were not interested in filling up details.

Many had the notion and not so good experiences with Club Mahindra.

They doubted that even if they would win the even, they would be asked to pay a

certain sum, which they were not ready to forfeit.

Store Managers at all outlets really have to push the customers to even filling up

the form.

** However, most customers at the Parel Outlet felt the same, but on pursuing they

were ready to increase their Ticket size for it.

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.


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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.

TheRanks 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

5C.6. EFFECTIVENESS OF DISTRIBUTION OF FLYERS FROM 20THJUNE - 20TH JULY

FLYERS

DISTRIBUTED FLYERS RETURNED

Bandra 2500 nil

Mahim 7000 3

Andheri 9000 nil

Marine Lines 4000 6

Malad 2000 nil

Vashi 10000 nil

5C.6.1. Inference:

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.


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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.CASH DISCOUNT VS FREE GIFT

5C.7.1. CASH DISCOUNT

Customers at all stores always ask for some additional discounts specially if the

Bill amount is more.

Loyal Customers of Loot expect some additional discounts; either in form ofcash

back, reward points.

Customers visiting our stores are eagerly looking forward to tie up with Loot in

the form of some membership also.

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.


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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 6

OBESERVATIONS

&

FINDINGS


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OBESERVATIONS & FINDINGS

The Schemes and visuals regarding certain schemes should be loud enough and

more attractiveso as to gain the shoppers attention.

The Scheme should be displayed to all, so that it is easily conveyed to allas soon

as they enter the store.

The Schemes undertaken at the store level should also consider the effectiveness

on the sales and footfalls.

Promotingindividual brands has helped increase sales & footfalls.

Cash Discounts & promoting sales throughfreebiesare all time welcome.

Our company should consider planning events according to area specificity.

Customers showed little interestin tying up with Club Mahindra.

Flyer activity results have so far not seemed to be fruitful.


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CHAPTER 7

LIMITATIONS


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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.


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CHAPTER 8

RECOMMENDATIONS


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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.


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CHAPTER - 9

CONCLUSION


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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.


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ANNEXURE


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BIBLIOGRAPHY

References:-

http://www.livemint.com/2008/04/20235752/A1EC8C62-2DE9-4D6D-9E7C-

9B8670B66420ArtVPF.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
http://www.livemint.com/2008/04/20235752/A1EC8C62-2DE9-4D6D-9E7C-9B8670B66420ArtVPF.pdfhttp://www.livemint.com/2008/04/20235752/A1EC8C62-2DE9-4D6D-9E7C-9B8670B66420ArtVPF.pdfhttp://www.warc.com/LandingPages/Generic/Results.asp?Ref=210https://hermes044.vnuinc.org/exchange/Melinda.Butts/Drafts/RE:%20FOR%20WEBSITE.EML/GlobalConsConf_June07.doc/Documents%20and%20Settings/buttsme01/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/LEIBFRIEPA01/Application%20Data/Mic%20http://www.warc.com/LandingPages/Generic/Results.asp?Ref=210http://www.adexindia.com/http://retail.about.com/od/marketingsalespromotion/a/marketing_ideas.htmhttp://www.mjcopywriting.co.uk/images/meritus/Retail_Canada_store_visit.pdfhttp://www.rediff.com/money/2003/oct/17malls.htmhttp://www.wikipedia.com/http://marketingteacher.com/Lessonstore.htmhttp://www.livemint.com/2008/04/20235752/A1EC8C62-2DE9-4D6D-9E7C-9B8670B66420ArtVPF.pdfhttp://www.livemint.com/2008/04/20235752/A1EC8C62-2DE9-4D6D-9E7C-9B8670B66420ArtVPF.pdfhttp://www.warc.com/LandingPages/Generic/Results.asp?Ref=210https://hermes044.vnuinc.org/exchange/Melinda.Butts/Drafts/RE:%20FOR%20WEBSITE.EML/GlobalConsConf_June07.doc/Documents%20and%20Settings/buttsme01/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/LEIBFRIEPA01/Application%20Data/Mic%20http://www.warc.com/LandingPages/Generic/Results.asp?Ref=210http://www.adexindia.com/http://retail.about.com/od/marketingsalespromotion/a/marketing_ideas.htmhttp://www.mjcopywriting.co.uk/images/meritus/Retail_Canada_store_visit.pdfhttp://www.rediff.com/money/2003/oct/17malls.htmhttp://www.wikipedia.com/http://marketingteacher.com/Lessonstore.htm


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QUESTIONNAIRE

A. Euro Cup Contest

i. Were the customers willing to fill up the contest forms?

Yes No

ii. If No, then what was the reason?

Unaware of playing teams No time not interestedIf any other reason please specify________________________________________

iii. Did your sales and footfalls increased, decreased or remained the same

during that period?

Increased Somewhat increased Decreased Remained the same

B. Womens Day Scheme

i. Did the visual merchandise at the store attract customers?

Yes No cant say

ii. Did the customers show interest in filling up the lucky draw forms for

Womens day event?

Yes No somewhat interestedIf No, then what was the reason?

____________________________________________________________________


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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 issuesIf any other reason please specify

__________________________________________________________________

iv. Did your sales & footfalls increased, decreased or remained the same

during the period?

Increased Somewhat increased Decreased Remained the same

C. Puma Discounts

i. Did the Puma Sale posters attract customers?

Yes No cant say

ii. Did you find increase in footfalls during the discounts?

Yes No Somewhat increased Remained thesame

iii. Was there any change in your sales?

Increased Decreased Remained the same


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iv. Please specify the no of pieces of Puma Sold before the discounts were put

up?

From 1st July 08 to 13th July08 . (2 weeks);--

Pieces: - ___________

v. Please specify the no of pieces of Puma Sold afterthe discounts were put

up?

From 14st July 08 to 20th July08 . (1 week);-

Pieces: - ___________

D. Club Mahindra Offer

i. Were the customers excited to make the highest billing to be the winner of

the week?

Yes No

ii. Were the customers willingly to filling up the forms for Club Mahindra?

Yes No Somewhat yes

iii. If No, what was the reason?

Already members Not interestedIf any other reason please specify

______________________________________________

iv. Did your ticket size increase while the offer was on?

Yes No Remained the same


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E. Rank the below from one to five in the order of the fastest to

the slowest selling items in your store.

Items Ranks

Mens Denim

Mens Shirts & T- Shirts

Womens Denim

Womens Tops & T- Shirts

Shoes & Accessories

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)

G. CASH DISCOUNT VS FREE GIFT

i. What do customers at Loot prefer most?

Cash Discount Free Gift Bothii. Did the free Gift offered help increasing the ticket size?

Yes No Somewhat yes

iii. Would you recommend continuing such schemes in future?

Yes No

If No Please specif h ?