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Contents
INTRODUCTION ....................................................................................................................................... 3
THE PURPOSE OF SALES PROMOTION ...................................................................................................... 4
METHODS FOR SALES PROMOTION ......................................................................................................... 5
MOST FAMILIAR SALES PROMOTION METHODS....................................................................................... 5
Rebates ............................................................................................................................................... 5
Coupons .............................................................................................................................................. 5
Samples ............................................................................................................................................... 5
Premiums ............................................................................................................................................ 5
Frequent-User Incentives .......................... ............................... ...................... ................................ ...... 5
Point-of-Purchase Displays ........................ ............................... ...................... ................................ ...... 6
Trade Shows ........................................................................................................................................ 6
Buying Allowances ............................................................................................................................... 6
Cooperative Advertising ........................... ................................ ...................... ................................ ...... 6
INDUSTRY SIZE ......................................................................................................................................... 7
MAJOR PLAYERS ...................................................................................................................................... 7
OBJECTIVE ............................................................................................................................................... 8
SCOPE ...................................................................................................................................................... 8
HYPOTHESIS ............................................................................................................................................ 8
RESEARCH DESIGN ................................................................................................................................... 9
A) SAMPLING TECHNIQUES .................................................................................................................. 9
SAMPLE SIZE .................................................................................................................................... 9
SAMPLING METHOD ........................................................................................................................ 9
Exploratory research study............................................................................................................... 9
QUESTIONNAIRE ............................. ......................... ................................ ...................... ........................ 10
Objectives of the questionnaire: ........................................................................................................ 10
Questionnaire Design Process ....................... ................................ ...................... ............................... 10
Determining the Order of Questions .................................................................................................. 10
Form and Layout of questionnaire: .................................................................................................... 11
Reproduction of the Questionnaire ......................... ................................ ...................... ..................... 11
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Pretesting .......................................................................................................................................... 11
Step 1 Specify the Information Needed ................................................... ...................... ................. 12
Step 2 Type of Interviewing Method ........................... ................................ ...................... ........ 12
Step 3 Individual Question Content ......................... ................................ ....................... ................ 12
Step 4 Overcoming Inability and Unwillingness to Answer .............................. ........................ ........ 13
Step 5 Choosing Question Structure ............................ ................................ ...................... ....... 13
Step 6 Choosing Question Wording ................................................................................................ 14
Step 7 Determine the Order of Questions .......................... ................................ ...................... .. 14
Step 8 Form and Layout ................................................................................................................. 15
Step 9 Reproduction of the Questionnaire ..................................................................................... 15
Step 10 Pretesting .......................................................................................................................... 15
CONCLUSION ......................................................................................................................................... 16
SAMPLE QUESTIONNAIRE ...................................................................................................................... 17
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INTRODUCTION
All human actions have one of these seven causes: chance, nature, compulsion, habit,
reason, passion and desire. As a human being the major cause to take over this project was
reason. The reason is to accomplish our task, aim, and motive of enhancing our knowledge and
to know more about the consumer durable industry. Consumer durables have become inseparable
in this era of modernization and thus influence even the common mens life. This is one of the
fastest growing industries with a growth of about 8% every year. Invention and the launch of
new technology is the most important tool of this industry. To maintain the quality of products
provided to the customers the companies dealing in the consumer durable products has to
undergo extensive study and research work. This project work is a small attempt to understand
the dealer and retailer in regards to the colour television Air conditioners and to find out the
position and sales promotional tools of Samsung among its competitors.
The consumer durable market in India has seen a proliferation of brands and product categories
in recent years. Most major international brands from Japan, Korea, US, Europe and China have
been launched in India with varying degrees of success. One of the largest barriers to entry for
any brand in India is the distribution network. The cost of servicing the network is huge for any
brand. The consumer is aware of the cost-benefit, or value for Money aspect. Financing options
are crucial in case of high-priced products. They increase the affordability for a Wide segment of
population. Like in any country, the consumer durable industry in India is largely dominated by
colour televisions (CTV), which account for 56% of the consumer durables industry.
Promotion is one of the four elements of marketing mix (product, price, promotion,
distribution). It is the communication link between sellers and buyers for the purpose of
influencing, informing, or persuading a potential buyer's purchasing decision. The specification
of five elements creates a promotional mix or promotional plan. These elements are personal
selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix
specifies how much attention to pay to each of the five subcategories, and how much money to
budget for each. A promotional plan can have a wide range of objectives, including: sales
increases, new product acceptance, creation of brand equity, positioning, competitive
retaliations, or creation of a corporate image. There are different ways to promote a product in
different areas of media. Promoters use internet advertisement, special events, endorsements, and
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newspapers to advertise their product. Many times with the purchase of a product there is an
incentive like discounts, free items, or a contest. This is to increase the sales of a given product.
THE PURPOSEOFSALES PROMOTION
Sales promotion activities may be used singly or in combination both offensively and
defensively to achieve one goal or a set of goals. Sales-promotion tools vary in their specific
objectives. A free sample stimulates consumer trial whereas a free management-advisory service
aims at cementing a long-term relationship with a retailer. Sellers use incentive-type promotions
to attract new users, to reward loyal customers and to increase the repurchase rates of occasional
users. Sales promotions used in markets of high brand similarity produce a high sales response in
the short run but little permanent gain in market share. In markets of high brand dissimilaritysales promotions can alter market share permanently. Sales promotions enable manufacturers to
adjust to short-term price they can charge because they can always discount it. They induce
consumers to try new products instead of never straying from current ones. They lead to more
varied retail formats such as the everyday-low-price store and the promotional-pricing store.
They promote greater consumer awareness of prices. They permit manufacturers to sell more
than they would normally sell at the list price. They help the manufacturer adapt programs to
different consumer segments. Consumers themselves enjoy some satisfaction from being smart
shoppers when they take advantage of price specials. Today many marketing managers first
estimate what they need to spend in trade promotion then what they need to spend in consumer
promotion. Whatever is left they will budget for advertising. The question of whether or not sales
promotion weakens brand loyalty is subject opt different interpretations. Sales promotion with its
incessant price off, coupons, deals, and premiums, may devalue the product offering in buyers
mind.
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METHODSFORSALES PROMOTION
Most sales promotional methods can be classified as promotion techniques either for consumer
sales or for trade sales.
1. A consumer sales promotion method attracts consumers to particular retail stores and
motivates them to purchase certain new or established products.
2. A trade sales promotion method encourages wholesalers and retailers to stock and actively
promote a manufacturers products.
MOSTFAMILIARSALES PROMOTIONMETHODS
Rebates A rebate is a return of part of the purchase price of a product. Usually the rebate is
offered by the producer to consumers who send in a coupon along with a specific proof of
purchase. Rebating is a relatively low-cost promotional method.
Coupons A coupon reduces the retail price of a particular product by a stated amount at the
time of purchase. These coupons may be worth anywhere from a few cents to a few dollars. They
are made available to customers through newspapers, magazines, direct mail, online, and in shelf
dispensers in the store. Coupons may also offer free merchandise either with or without an
additional purchase of the product.
Samples A sample is a free product given to customers to encourage trial. Samples may be
offered via online coupons, direct mail, or in stores. Samples are the most expensive sales
promotion technique.
Premiums A premium is a gift that a producer offers the customer in return for using its
product.
Frequent-User Incentives Frequent-user incentives are programs developed to reward
customers who engage in repeat (frequent) purchases. Frequent-user incentives build customer
loyalty. An airlines frequent-flyer program is one example of a frequent-user incentive.
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Point-of-Purchase Displays A point-of-purchase display is promotional material placed
within a retail store. It may actually hold merchandise or inform customers of what the product
offers and encourage them to buy it. Most point-of-purchase displays are prepared and set up by
manufacturers and wholesalers.
Trade Shows A trade show is an industry wide exhibit at which many sellers display their
products. Some trade shows are organized exclusively for dealersto permit manufacturers and
wholesalers to show their latest lines to retailers. Others are promotions designed to stimulate
consumer awareness and interest.
Buying Allowances A buying allowance is a temporary price reduction to resellers for
purchasing specified quantities of a product. A buying allowance may serve as an incentive toresellers to handle new products, stimulate purchase of items in large quantities.
Cooperative Advertising Cooperative advertising is an arrangement whereby a
manufacturer agrees to pay a certain amount of the retailers media costs for advertising the
manufacturers product.
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INDUSTRYSIZE
About Rs 23,000-crore consumer durables industry can be divided into two types: consumerelectronics and consumer utilities. Consumer Electronic industry has a size of around Rs. 102
billion. The Indian television industry has a size of around Rs 96 billion comprising colour
television (CTV) of Rs 91 bn and B&W TV market of Rs 5 bn and other markets (primarily
video equipment) of Rs. 4-6 billion. In terms of volumes the CTV market was estimated at 9.05
million units and the B&W TV market at 2 million units during calendar year
2004. Refrigerators constitute the second largest product segment within the Indian consumer
durables sector in India with an estimated annual turnover of Rs 39 bn during FY2005 with an
estimated sale of 4.1m units. The size of the room Air-conditioners industry is estimated at 1.1
m in volume terms, and Rs 24 bn in value terms. Washing machines sales in India aggregated an
estimated 1.37m during FY2004 or around Rs 11 bn in value terms.
MAJOR PLAYERS
The major players in the consumer durables industry operating in different sectors such as air
conditioners, washing machines, refrigerators & television: Blue Star Ltd., Mirc Electronics Ltd.,
Whirlpool of India Ltd., Philips (India) Ltd., Sony Corporation Ltd., Samsung India Ltd., LG
Electronics India Ltd., Videocon International Ltd., Thomson Ltd. & Daewoo Ltd.
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OBJECTIVE
The objective of the report is to identify the best sales promotional tools for consumer durable
products for dealers and retailers.
SCOPE
y Impact of consumer durables (being taken in to the study) on the consumers.
HYPOTHESIS
y Culture affects of the consumers buying behavior on consumer durables.y Effect of sales promotional tools on dealer and retailers.y May be other promotional tools are not much effective.
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RESEARCHDESIGN
A)SAMPLINGTECHNIQUES
SAMPLESIZE
A sample of 15-30 should be chosen. Both dealers and retailers should be considered in
the sample.
SAMPLINGMETHOD
Exploratory research study
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. Our research is comparative in nature.
MethodofData collection: In order to study the consumer perception regarding the uses
of Samsung Products with respect to other companies in Hyderabad both primary and
secondary data will be collected.
The study proposed to collect Primary data through questionnaire using surveymethod.
The secondarydata as it has always been important for the completion of any reportprovides a reliable, suitable, equate and specific knowledge. The data will collect from
various magazines, fact sheets newspapers and websites published by the company.
Sampling Technique: The study proposed to use convenience sampling.
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QUESTIONNAIRE
y A questionnaire is a formalized set of questions for obtaining information fromrespondents.
Objectives of the questionnaire:
y It must translate the information needed into a set of specific questions that therespondents can and will answer.
y A questionnaire must uplift, motivate, and encourage the respondent to become involvedin the interview, to cooperate, and to complete the interview.
y A questionnaire should minimize response error.Questionnaire Design Process
Specify the information needed. Specify the type of interviewing method. Determine the content of individual questions. Design the question to overcome the respondents inability and unwillingness to answer. Decide the question structure Determine the question wording Arrange the questions in proper order. Identify the form and layout. Reproduce the questionnaire. Eliminate bugs by pre-testing.
Determining the Order ofQuestions
Opening Questions
y The opening questions should be interesting, simple, and non-threatening.Type of Information
y As a general guideline, basic information should be obtained first, followed byclassification, and, finally, identification information.
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Difficult Questions
y Difficult questions or questions which are sensitive, embarrassing, complex, or dull,should be placed late in the sequence.
Form and Layout of questionnaire:
y Divide a questionnaire into several parts.y The questions in each part should be numbered, particularly when branching questions
are used.
y The questionnaires should preferably be precoded.y The questionnaires themselves should be numbered serially.
Reproduction of the Questionnaire
y The questionnaire should be reproduced on good-quality paper and have a professionalappearance.
y Questionnaires should take the form of a booklet rather than a number of sheets of paperclipped or stapled together.
y Each question should be reproduced on a single page (or double-page spread).y Vertical response columns should be used for individual questions.y Grids are useful when there are a number of related questions they use the same set of
response categories.
y The tendency to crowd questions together to make the questionnaire look shorter shouldbe avoided.
y Directions or instructions for individual questions should be placed as close to thequestions as possible.
Pretesting
Pretesting refers to the testing of the questionnaire on a small sample of respondents to
identify and eliminate potential problems.
y A questionnaire should not be used in the field survey without adequate pretesting.
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y All aspects of the questionnaire should be tested, including question content, wording,sequence, form and layout, question difficulty, and instructions.
y The respondents for the pretest and for the actual survey should be drawn from the samepopulation.
y Pretests are best done by personal interviews, even if the actual survey is to be conductedby mail, telephone, or electronic means, because interviewers can observe respondents'
reactions and attitudes.
y After the necessary changes have been made, another pretest could be conducted by mail,telephone, or electronic means if those methods are to be used in the actual survey.
y A variety of interviewers should be used for pretests.y The pretest sample size varies from 5 to 10 respondents for each wave.y Protocol analysis and debriefing are two commonly used procedures in pretesting.y Finally, the responses obtained from the pretest should be coded and analyzed.
Step 1 Specify the InformationNeeded
1. Ensure that the information obtained fully addresses all the components of the problem.Review components of the problem and the approach, particularly the research questions,
hypotheses, and specification of information needed.
2. Prepare a set of dummy tables.3. Have a clear idea of the target population.
Step 2 Type ofInterviewingMethod
1. Review the type of interviewing method determined based on considerations.Step 3 IndividualQuestion Content
1. Is the question necessary?2. Are several questions needed instead of one to obtain the required information in an
unambiguous manner?
3. Do not use double-barreled questions.
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Step 4 Overcoming Inability and Unwillingness to Answer
1. Is the respondent informed?2. If respondents are not likely to be informed, filter questions that measure familiarity,
product use, and past experience should be asked before questions about the topicsthemselves.
3. Can the respondent remember?4. Avoid errors of omission, telescoping, and creation.5. Questions which do not provide the respondent with cues can underestimate the actual
occurrence of an event.
6. Can the respondent articulate?7. Minimize the effort required of the respondents.8. Is the context in which the questions are asked appropriate?9. Make the request for information seem legitimate.10.If the information is sensitive:
a. Place sensitive topics at the end of the questionnaire.b. Preface the question with a statement that the behavior of interest is common.c. Ask the question using the third-person technique.d. Hide the question in a group of other questions which respondents are willing to
answer.
e. Provide response categories rather than asking for specific figures.f. Use randomized techniques, if appropriate.
Step 5 ChoosingQuestion Structure
1. Open-ended questions are useful in exploratory research and as opening questions.2. Use structured questions whenever possible.3. In multiple-choice questions, the response alternatives should include the set of all
possible choices and should be mutually exclusive.
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4. In a dichotomous question, if a substantial proportion of the respondents can be expectedto be neutral, include a neutral alternative.
5. Consider the use of the split ballot technique to reduce order bias in dichotomous andmultiple-choice questions.
6. If the response alternatives are numerous, consider using more than one question toreduce the information processing demands on the respondents.
Step 6 Choosing Question Wording
1. Define the issue in terms of who, what, when, where, why, and way (the six Ws).2. Use ordinary words. Words should match the vocabulary level of the respondents.3. Avoid ambiguous words: usually, normally, frequently, often, regularly, occasionally,
sometimes, etc.
4. Avoid leading questions that clue the respondent to what the answer should be.5. Avoid implicit alternatives that are not explicitly expressed in the options.6. Avoid implicit assumptions.7. Respondent should not have to make generalizations or compute estimates.8. Use positive and negative statements.
Step 7 Determine the Order ofQuestions
1. The opening questions should be interesting, simple, and non-threatening.2. Qualifying questions should serve as the opening questions.3. Basic information should be obtained first, followed by classification, and, finally,
identification information.
4. Difficult, sensitive, or complex questions should be placed late in the sequence.5. General questions should precede the specific questions.6. Questions should be asked in a logical order.7. Branching questions should be designed carefully to cover all possible contingencies.
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8. The question being branched should be placed as close as possible to the question causingthe branching, and (2) the branching questions should be ordered so that the respondents
cannot anticipate what additional information will be required.
Step 8 Form and Layout
1. Divide a questionnaire into several parts.2. Questions in each part should be numbered.3. The questionnaire should be pre-coded.4. The questionnaires themselves should be numbered serially.
Step 9 Reproduction of the Questionnaire
1. The questionnaire should have a professional appearance.2. Booklet format should be used for long questionnaires.3. Each question should be reproduced on a single page (or double-page spread).4. Vertical response columns should be used.5. Grids are useful when there are a number of related questions which use the same set of
response categories.
6. The tendency to crowd questions to make the questionnaire look shorter should beavoided.
7. Directions or instructions for individual questions should be placed as close to thequestions as possible.
Step 10 Pretesting
1. Pretesting should be done always.2. All aspects of the questionnaire should be tested, including question content, wording,
sequence, form and layout, question difficulty, and instructions.
3. The respondents in the pretest should be similar to those who will be included in theactual survey.
4. Begin the pretest by using personal interviews.
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5. Pretest should also be conducted by mail or telephone if those methods are to be used inthe actual survey.
6. A variety of interviewers should be used for pretests.7. The pretest sample size is small, varying from 15 to 30 respondents for the initial testing.8. Use protocol analysis and debriefing to identify problems.9. After each significant revision of the questionnaire, another pretest should be conducted,
using a different sample of respondents.
10.The responses obtained from the pretest should be coded and analyzed
CONCLUSION
Care should be taken while preparing the questionnaire as consumer durables are costly
products and it requires good services. Hence, a sensitive questions should be asked. The
sales promotional tools may affect the dealers and retailers behavior while selecting the
product to keep in their shop.
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SAMPLEQUESTIONNAIRE
Study of consumer durables market for Samsung electronics limited with special reference to
Hyderabad.
Name of the shop: _____________________________
Address: ____________________________________
____________________________________________
Contact number: _______________________________
1. Which is consumer durable product you sold from your shop?a) C-TVb) Refrigeratorc) Washing machined) DVDe) Microwave
2. How many number of companys product you sold from your shop?a) Oneb) Twoc) Threed) Foure) More than four
3. Which is the major brand of colour television you sold from your shop?a) LGb) Samsungc) Onidad) Videocone) Others
If others please specify ____________________________________
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4. What is the important parameter for more sales of colour television brand?a) Priceb) Servicec) Qualityd) Promotione) Others
If others please specify _____________________________________
5. Which major brand of refrigerator is sold from shop?a) LGb) Godrejc) Samsungd) Whirlpoole) Kelvinator
If others please specify _______________________________________
6. What is important parameter for more sales of Refrigerator brand?a) Priceb) Qualityc) Serviced) Promotione) Others
If others please specify ________________________________________
7. Which is the major brand of washing machine you sold from your shop?a) Samsungb) LGc) Whirlpoold) Godreje) Others
If others please specify ________________________________________
8. What is the important parameter for more sales of washing machine brand?a) Priceb) Qualityc) Serviced) Promotione) Others
If others please specify ________________________________________
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9. Which is the major brand of DVD you sold from your shop?a) Samsungb) LGc) Whirlpoold) Godreje) Others
If others please specify ________________________________________
10.What is the important parameter for more sales of DVD brand?a) Priceb) Qualityc) Serviced) Promotione) Others
If others please specify ________________________________________
11.Which is the major brand of Microwave you sold from your shop?a) Samsungb) LGc) Philipsd) Sonye) Others
If others please specify ________________________________________
12.What is the important parameter for more sales of Microwave brand?a) Priceb) Qualityc) Serviced) Promotione) Others
If others please specify ________________________________________
13.Which companys product gives high profit margin?a) Samsungb) LGc) Videocond) Sonye) Others
If others please specify _________________________________________
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14.What are the sales promotion tools mostly used by companies?a) Rebatesb) Couponsc) Premiumsd) Discountse) Others
If others please specify __________________________________________
15.Which sales promotional tools are highly profitable?a) Rebates
b) Coupon
c) Premiums
d) Discounts
e) OthersIf others please specify __________________________________________
16.What are your suggestions regarding sales promotional tools for consumer durables?________________________________________________________________
________________________________________________________________
Thankyou