Sales Promotion of Television Industry

SALES PROMOTION TELEVISION INDUSTRY

RESEARCH EXTRACT

Introduction:

Sales promotion consists of a variety of companies. Sponsored

promotional activities that supplement both advertising and personal set up.

These activities are impersonal and can be directed at industrial buyers,

intermediaries or consumers.

Sales promotion consists of a diverse collection of incentive tools, mostly

short term, designed to stimulate quicker or greater purchase of particular

products or services by consumers of the trade.

Sales promotion tools vary in their specific objectives. Incentive type

promotions are used to attract new buyers, to reward loyal customers and to

increase the repurchase rates of the occasional users. Sales promotion often

attracts the branch switchers, because users of other brands and categories do

not always notice or act on a promotion.

In using the sales promotion a company must establish its objectives,

select the tools develop the program, a pretest the program, implement and

control it and evaluate the results.

Objective:

To understand and analyze various factors influencing sales promotion

program in home appliances (TELEVISION) industry.

DEPARTMENT OF MANAGEMENT STUDIES CITY COLLEGE1


To know the factors which influence the purchase decision?

To measure the sales promotion effectiveness in home appliances

( TELEVISION) Industry.

It attracts the brand switchers and increases the sales volume.

Scope of study

The scope of the study gives an idea to develop the sales promotion

activities in home appliances (Television) industry. It involves the evaluation of

the present promotional activities. With the help of the study we can give

suggestion regarding sale promotion and services offered by the home

appliances (Television) industry. The study brings an awareness of the sales

promotional activities by advertising in an accepted media.

Research methodology

Research design is the arrangement of condition for collection and

analysis of data in a manner that aims to combine relevance to the research

purpose with economy in procedures. The research design used for this study is

Descriptive Research. It focuses on the accurate description of the variables in

the problem model. Any source of information can be used in a descriptive

study, although most studies of this nature rely on secondary data source of

survey research. The sampling design followed in the survey is simple random

probability sampling in which each population element has a known and equal

chance of selection.



Sample unit:

Generally customers as a source of primary data collection have been

surveyed for the purpose of obtaining information.

Sample size

For this research work due to time constraint the sample size taken is 250.

Sampling procudure:

Consumers have been surveyed through the questionnaire in personnel.

Contribution of the study

The main purpose of the study is to know the effectiveness of the promotional

activities in the home appliances (TELEVISION) industry. From the study we

expect to know to what extent the promotional activity benefited to the industry

and what the things are that customer expects to do from the industry to improve

sales.

The effectiveness of promotional activities helps the company to increase the

sales and encourage the repeat purchase. We also try to know the awareness of

the sales promotional activities as advertising plays an important role in sales

promotion.



INTRODUCTION

BACKGROUND OF THE STUDY

Sales promotion consists of a variety of companies. Sponsored

promotional activities that supplement both advertising and personal set up.

These activities are impersonal and can be directed at industrial buyers,

intermediaries or consumers.

Sales promotion consists of a diverse collection of incentive tools,

mostly short term, designed to stimulate quicker or greater purchase of particular

products or services by consumers of the trade.

Sales promotion tools vary in their specific objectives. Incentive type

promotion is used to attract new tiers, to reward loyal customers and to increase

the repurchase rates of the occasional users. Sales promotion often attracts the

branch switchers, because users of other brands and categories do not always

notice or act on a promotion.

In using the sales promotion a company must establish its objectives,

select the tools develop the program, a pretest the program, implement and

control it and evaluate the results.



Where advertisement offers a reason to buy, sales promotion offers an

incentive to buy. Sales promotion includes tools for consumer promotion

(samples,coupons,cash refund, price off,premiums,prizes,patronage rewards,

free trials,warranties,tie-in-offers cross promotion, point of purchase displays and

demonstration);trade promotion(price off, advertising and display allowances and

free goods);and business and sales force promotion(trade shows and

conventions, contests for sales reps and specialty advertising)



STATEMENT OF THE PROBLEM

Accessing the product promotion strategy of home appliances

(Television) companies, the study is applied descriptive in nature. It also tends to

find impact of different communication channels and advertisement on

consumers. At the same time it was intended to find out the fastest moving

Television brand in the market, it also intended to find out the customer

satisfaction level of different brands of Television users.



NEED AND IMPORTANCE OF THE STUDY

The scope of the study gives an idea to develop the sales promotion

activities in home appliances (Television) industry. It involves the evaluation of

the present promotional activities. With the help of the study we can give

suggestion regarding sale promotion and services offered by the home

appliances (Television) industry. The study brings an awareness of the sales

promotional activities by advertising in an accepted media.



OBJECTIVES OF THE RESEARCH

To understand and analyze various factors influencing sales promotion

program in home appliances (Television) industry.

To know the factors which influence the purchase decision.

To measure the sales promotion effectiveness in home appliances

(Television) Industry.

It attracts the brand switchers and increases the sales volume.



REVIEW OF LITERATURE

PURPOSE

The literature review section critically examined the recent or historically

significant research studies, company data or industry reports that acts as a

basis for the purpose to study. To begin with research discussion of the related

literature and relevant secondary data from a comprehensive perspective moving

to move specific studies that are associated with research problem. Basically the

literature should be applied to the study that the researcher proposes. The

literature may also explain the need for the proposed work to apprise the short

comings and informational gaps in secondary data sources. This analysis may go

beyond scrutinizing the availability or conclusions of past studies and their data,

to examining the accuracy of secondary sources, the credibility of secondary

sources, and the appropriateness of earlier studies. A choice often reveled by

this exercise is that of using a secondary data approach instead of collecting

primary data. So, last but not the least a comprehensive review lays a basis

choice.



METHODOLOGY

The review of literature session analyzes the significant research studies.

The secondary data may be used as a sole for a research study. Since in many

research situations one cannot conduce primary research because of physical,

legal or cost influences. The researcher procured and compiled the data in its

normal operations within its premises. The researcher has collected the company

profile and the sample profile from the various internal reports by the company.

The external secondary data recourses has been obtained by researcher from

the Central library, Government sources, Commercial sources and Industrial

sources as well as from the internet.

In the present scenario, the Internet facilitate the researcher in such way

that where the researcher can collect everything. Perhaps, it includes the profile

of the company, library sources as well as historically significant research

studies.



CONCLUSION

The review of literature has facilitated the researcher to have a familiarity

with the research problem undertaken and also is indicates the deficiencies as

well as informational gap. In result of this the researcher can make the primary

data collection more specific and more relevant research study. It has helped the

researcher to explore the research problem in an improved way. It has change

the earlier idea of the research. The review of literature are an integral part of a

large a research study or of a report to justify having bypassed the cost and

benefits of doing primary research. Primarily the research is depending on

primary data through the literature review helped the researcher to understand

more inside to the research problem by analyzing relevant research studies. For

any research problem, when secondary data is too exhaustive, the researcher

could depend on secondary sources. With the short span of time the literature

review has helped the researcher to have a strong background of the study.



METHODOLOGY

Type of Research:

The research design constitutes the blueprint of the collection,

measurement and the analysis of data. The research design is the plan and

structure of investigation so conceived as to obtain answers to research

questions. The plan is the overall scheme or program of the research. The

researcher has adopted descriptive research studies. Descriptive research is

used to describe the conditions that are prevailing in the place where the

research study was conducted.

Sampling Technique:

Sampling is simply the process of learning about the population on the

basis of a sample. Thus in a sampling technique instead of every unit of the

universe only a part of the universe is studied and conclusions are drawn on the

basis for the entire universe.

A sample is a subset of the population units.

The researcher has adopted Random Sampling because population is known.

Sample size:

The researcher’s main concentration is to reduce the cost substantially.

Now if the researcher surveyed to a relatively smaller number of units would

mean relatively high cost per interview. Hence, the sample size consists of 250

for this research.



Sample Description:

The study was conducted with in the limits of Bangalore City. It covers

various places like J P nagar, Indhira nagar , Koramangala and B T M layout.

Instrumental Techniques:

The researcher has done the communication method by having a

structured non-disguised questionnaire. A structured non-disguised questionnaire

is the one where the listing of questions is in a prearranged order where the

objective of the enquiry is reveled to the respondents. Most market studies use

this type of questionnaire. It may be mentioned that in large majority of cases it

has been felt that the respondents should be taken in to confidence and clearly

told why the survey is being undertaken so that the respondents would realize its

relevance and give desired information accurately. The structured non-disguised

questionnaire consists of dichotomous questions, multiple choice questions,

ranking scales, and close-ended questions.

The researcher has used structured non-disguised questionnaire.

Actual Collection of Data:

The researcher has collected the actual data through personal survey with

the help of a structured non-disguised questionnaire.



The researcher has to exercise great care in choosing the method on the

basis of a couple of criteria or considerations which he thinks are important in the

survey so the given short span of time, if the researcher would go ahead with

mail survey or email survey or personal observation never be cost effective, so in

order to overcome from all these difficulties the researcher has done the actual

field work by personal survey. In this process the researcher has submitted a

well-structured questionnaire to the respondents by meeting them personally.

Tools Used For Testing of Hypothesis:

In attempting to arrive at decisions about the population, on the basis of

sample information it is necessary to make assumptions or guesses about the

population parameter involved. Such an assumption is called statistical

hypothesis, which may or may not be true. The procedure, which enables the

researcher to design on the basis, is sample regards whether a hypothesis is true

or not is called test of hypothesis or test of significance.

The null hypothesis asserts that there is no significant difference between the

statistics and the population parameters and what ever is observed difference is

there, is merely due to fluctuations in sampling from the same population. Null

hypothesis is thereby denoted by the symbol H0. Any hypothesis, which

contradicts the H0, is called an alternate hypothesis and is denoted by the

symbol H1.

The researcher has used chi-square analysis.



CHI-SQUARE TEST

The 2 is one of the simplest and most widely used non-parametric

test in statistical work. It makes no assumptions about the population being

sampled. The quantity 2 describes the magnitude of discrepancy between

theory and observation i.e. with the help of 2 test we can know whether a given

discrepancy between theory and observation can be attributed to chance or

whether it results from the inadequacy of the theory to fit the observed facts. If 2

is zero, it means that the observed and expected frequencies completely

coincide. The greater the value of 2, the greater will be the discrepancy

between observed and expected frequencies.

The formula for computing chi-square is –

2 = (O-E) 2/E

Where, O=Observed frequency

E=Expected or theoretical frequency

Other Software used for Data Analysis:

For the data analysis and the subsequent interpretation, the researcher

has adopted advanced version of MS Excel 2000. This application software has

facilitated the researcher to construct the frequency table, various types of

graphs and to find out the average responses form the sample. By this

automated data analysis it has minimized the researcher’s time constraints and

reduced human error and also accurate outlay of information.



HYPOTHESIS

Table Number 1.

Table shows the relation between the various sales promotion tools and the

opinion of the respondents.

Chi-Square Analysis.

ParametersStrongly Agree Agree Neutral Disagree

Strongly Disagree Total

Exchange offer 80 70 40 33 27 250

Discount offer 90 63 32 35 30 250

Prices 95 80 28 25 22 250

Warranties 70 85 43 32 20 250

Tie-in-offer 65 78 70 20 17 250

Total 400 376 213 145 116 1250Source: Primary Data.

Ho: There is no significant association between the sales promotion tools and the

opinion of the respondents about sales promotion tools.



H1: There is a significant association between the sales promotion tools and the

opinion of the respondents about sales promotion tools.

Degree of freedom =16

Level of significance =5%

Calculated value= 47.791

Table value = 21

Inference

Since the table value is less than the calculated value. So Hypothesis is

rejected. Hence there is a significant association between the sales promotion

tools and the opinion of the respondents about sales promotion tools.



Table 2:

Table showing which company’s televisions they are using

Particulars No of respondents Percentage

L.G 107 43

SAMSUNG 55 22

BPL 53 21

OTHERS 35 14

SOURCE: primary data

INTERPRETATION:

43% of them say LG, 22% of them say samsumg and 21% of them say its

BPL while 14% of them say its others.



GRAPH 1:

Graph showing which company’s televisions they are using

Source: Table no 2



TABLE 3:

Table showing which company does live demonstration.


L.G 75 30SAMSUNG 53 21

BPL 72 29OTHERS 50 20


INTERPRETATION:

30% say its LG, 29% say BPL and 21% of them say its SAMSUNG while

20% of them say other companies live demonstration is good.



GRAPH 2:

Graph showing which company does live demonstration

Source: Table no 3



TABLE 4:

Table showing consumer education.


L.G 73 29SAMSUNG 77 31

BPL 65 26OTHERS 35 14


INTERPRETATION:

31% of the customers say SAMSUNG, 29% of them say LG, 26% of the

customers say its BPL while 14% of them say its others.



GRAPH 3:

Graph showing consumer education.

Source: Table no 4



TABLE 5:

Table showing media suitable for television advertisement


Magazines 25 10Television 180 72FM Radio 7 3Outdoor 38 15


INTERPRETATION:

72% of the customers say its television, 15% say outdoor, 10% say

magazines while 3% say its FM Radio.



GRAPH 4:

Graph showing media suitable for television advertisement

Source: Table no 5



TABLE 6:

Table showing gift offered by various companies.


Yes, always 75 30

Depend on the

brand name

115 46

No, will go for the

own brand

60 24


INTERPRETATION:

46% of the customers say it depends on the brand name and 30% of

them say yes, always, while 24% of them say no, will go for the own brand.



GRAPH 5:

Graph showing gift offered by various companies

Source: Table no 6



TABLE 7:

Table showing sales promotion tools.

Particular Strongly agree

Agree Neutral Disagree Strongly disagree

Exchange offer

80 70 40 33 27

Discount offer

90 63 32 35 30

Prizes 95 80 28 25 22

Warranties 70 85 43 32 30

Tie-in offers

65 78 70 20 17


INTERPRETATION:

23% of the customer say discount offer, 18% of them also say its warranties,

20% of them say exchange offer, 23% of them say prizes while 16% of them say

its Tie-in-offers.



GRAPH 6:

Graph showing sales promotion tools.

Source: Table no 7



TABLE 8:

Table showing point of purchase display.


L.G 73 29

SAMSUNG 77 31

BPL 65 26

OTHERS 35 14


INTERPRETATION:

31% of the customers say its SAMSUNG, 29% of them say LG, 26% of

them say BPL, while 14% say others.



GRAPH 7:

Graph showing point of purchase display.

Source: Table no 8



TABLE 9:

Table showing demand of companies trade shows and fairs


L.G 43 29

SAMSUNG 115 31

BPL 52 26

OTHERS 40 14


INTERPRETATION:

31% of the customers say its SAMSUNG, 29% of the customers say LG,

26% of them say BPL while 14% of them say its others.



GRAPH 8:

Graph showing demand of companies trade shows and fairs

Source: Table no 9

TABLE 10:



Table showing demand of companies cross promotion activities.


L.G 40 16

SAMSUNG 102 41

BPL 83 33

OTHERS 25 10


INTERPRETATION:

41% of the customers say its SAMSUNG, 33% of them say its BPL, 16% of

them say LG while 10% of them say its others.

GRAPH 9:



Graph showing demand of companies cross promotion activities.

Source: Table no 10

TABLE 11:



Table showing level of satisfaction.


Yes 180 72

No 70 28


INTERPRETATION:

72% of them say yes while 28% of them say no.

GRAPH 10:



Graph showing level of satisfaction

Source: Table no 11

TABLE 12:



Table showing reason for satisfaction.


Prices are cheap &quality is good

53 21

Durable 60 24

Friendly sales team 45 18

Brand image is demanding

92 37


INTERPRETATION:

37% of the customers say brand image is demanding, 24% of them say

durable, 21% of them say prices are cheap and quality is good while 18% of

them say friendly sales team.

GRAPH 11:



Graph showing reason for satisfaction

Source: Table no 12

CONCLUSION OF ANALYSIS



Majority of the customers say they own L G television followed by that is

Samsung with 22%.

Majority of the customers live demonstrations of L G is more effective

compared to other television company.

Majority of the customers say that Samsung is providing better customer

education more than any other company

Majority of the customers say that advertisement through television is

more effective.

If any gifts are offered with the brand majority of the customer say that it

depend on the brand name which is provided followed by that is yes ,

always

Majority of the customers say that Samsung trade shows and fairs are on

demand but some says that its cross promotion activities are in demand.

Majority of the customers are satisfied with the brand and the reason for

that is brand image is demanding and it’s durable.

SUMMARY AND CONCLUSION



CONCLUSIONS FROM THE STUDY

Sales promotion is a most important aspect in any company, the study

was conducted in the home appliances industry regarding sales promotion. The

researcher was helpful to gain some knowledge about the organization and also

about sales promotion conducted in the organization. The company is getting the

feedback from the respondents who are using the television.

Based on the study made the researcher has given few findings and suggestions

regarding the sales promotions of the industry.

IMPLICATION



All the three companies that are LG, SAMSUMG, and B P L companies

will be able to face the steep competition from the local manufacturers who are

also quite competent with the Television manufacturing technology. Since price is

the main factor for most buyers, companies will be able to stay in the market with

competitive price and may be with a lower profit margin, which can be

compensated through flat screen. This technology is not readily available with the

local manufacturers.

Companies will be able to convince the customers in a dignified manner

rather than buying their minds through gift schemes.

SUGGESTIONS:



Since majority of the customers is in favor of live demonstration of LG.

they should prioritize more in rest of the sales promotional tools to attract

more customers.

In case of Samsung it provides better customer education and fabulous

trade shows but it has to focus more on live demonstration exchange

offers, discount offer, prices warranties and so on.

In the sales promotional tools BPL is highly lacking behind compared to

LG and Samsung. Therefore, they should do something to uplift these

tools in order to attract the customers.


Sales Promotion of Television Industry

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