Classification of Empirical Work on Sales Promotion: A Synthesis for Managerial Decision Making

Sales Promotion activities have gained strategic focus as markets are getting complex and competitive. Key managerial concerns in this area are budget allocation across elements of promotions as well as trade vis. consumer promotion, how to design individual sales promotion techniques and a calendar in face of competitive promotions, how to manage them and evaluate the short-term and long-term impact of the same. The objective of this paper is to present, through Meta-analysis, an overview of recent contributions appearing in scholastic journals relevant to the field of Sales Promotion, to classify them into different classificatory framework, report key findings, highlight the managerial implications and raise issues. The database used is the EBSCO host available on VSLLAN (Library)- Indian Institute of Management Ahmedabad). The selection procedure consisted of peer-reviewed scholarly contributions for recent five year period. Out of more than 700 articles 64 article were selected which were analyzed for classifying them into • Perspective addressed: Manufacturer, retailer or consumer. • Market [country where the research was undertaken] • Type of promotion activity addressed - coupon, contest, price cut etc. • Management function addressed: planning, implementation, control [evaluation] • It was found that majority of the articles addressed manufacturers perspectives ; almost all studies were done in developed countries ; coupon as a consumer promotion tool was widely researched; and more than half of the articles were addressing planning related issues. Finally attempt has been made to synthesize managerial implications of the studies under broad topic areas for guidelines for managers.

Indian Organised Apparel Retail Sector and DSS (Decision Support Systems)

Indian apparel retail sector poses interesting challenges to a manager as it is evolving and closely linked to fashions. Appealing mainly to youth, the sector has typical information requirements to manage its operations. DSS (Decision Support Systems) provide timely and accurate information & it can be viewed as an integrated entity providing management with the tools and information to assist their decision making. The study exploratory in nature, adopts a case study approach to understand practices of organized retailers in apparel sector regarding applications of various DSS tools. Conceptual overview of DSS is undertaken by reviewing the literature. The study describes practices and usage of DSS in operational decisions in apparel sector and managerial issues in design and implementation of DSS. A multi brand local chain and multi brand national chain of apparel was chosen for the study. Varied tools were found to be used by them. It was also found that for sales forecasting and visual merchandising decisions, prior experience rather than any DSS tool was used. The benefits realized were; “help as diagnostic tool”, “accuracy of records and in billing”, “smooth operations”. The implementation issues highlighted by the store managers were; more initial teething problems rather than resistance on the part of employees of the store, need for investment of time & money in training, due to rapid technological advancements, time to time updation in DSS tools is required . Majority of operational decisions like inventory management, CRM, campaign management were handled by ERP (Enterprise Resource Planning) or POS (Point of Sale). Prioritization as well as quantification of benefits was not attempted. The issues of coordination, integration with other systems in case of ERP usage, training were highlighted. Future outlook of DSS seems bright as apparel retailers are keen to invest in technology.

Loyalty Programme Applications in Indian Service Industry

Retaining all customers would not be a good idea for any business. In contrast, allowing the profitable customers to leave would be an even worse idea. Consequently the real solution rests in knowing the value of each customer and then focusing loyalty efforts on those customers. Customers are more likely to be loyal to a group of brands than to a single brand. This is particularly true if the chosen brand is the category leader and costs more. In contrast to the one – brand- for – life mentality of the past, today’s consumers are blatant in their divided loyalties, for their own safety and pleasure. The conceptual framework presented helps to understand the evolving logic of loyalty programs and process of implementing the same. Applications in different service industry for building and sustaining loyalty provide an overview of the status of such programmes.

Incentive Outlay Ratios in Fast Moving Consumer Goods Sector

Inflationary trends in economy have led to increased media costs, forcing many companies to increased expenditure on sales promotion activities. It has been recognized that well-planned sales promotion activities have a strategic role to play in brand building and enhancing customer loyalty. This study examines the nature of schemes offered in the FMCG(fast moving consumer goods) category, to find out ratio of incentive and outlay (which the consumer is expected to make to avail sales promotion offers), explore the relationships, find out the rationale behind these offers, and provide guidelines to managers designing sales promotion activities. Eight different product categories were selected for the study. Information on actual offers made in these categories in a quarter was compiled and tabulated through content analysis in terms of brand, MRP(maximum retail price), offer(size of the incentive offered), nature of the scheme, pack being promoted, and outlay. Variations in I/O(incentive-outlay) ratios across product categories revealed that the non-food category exhibited more variations than the food category.The level of incentive in the nonfood category was higher than that of the food category , 0.33(33percent) was the most frequently offered level of incentive, Bonus pack followed by free gift and price offs were the popular tools used across product categories , Except for toilet soaps, in other categories medium to large pack was promoted more often. The findings suggest that managers need to be creative to create an impact , otherwise consumers would tend to be less loyal to any brand in a category and drift from one promoted brand to another. Several propositions generated in this research need to be addressed in future research. Factors to be considered and managerial issues concerning the design are also discussed.

Measuring Consumer Preferences for Sales Promotion Schemes through Conjoint Design in FMCG Sector

Fast moving consumer goods in India is characterized by intense competition leading to brand proliferation in various categories. Using consumer sales promotion to differentiate ones offer has been a common practice in matured urban markets. More and more budget is allocated to these activities in order to lure the consumers. In such a scenario, it is very essential to study how consumers make their choices in FMCG category where there are several brands in the consideration set of a consumer. The financial risk being low consumers do not mind switching from one brand to another due to sales promotion offer. Hence it would be of interest to a marketer to learn about consumer preferences with respect to sales promotion offers; what schemes do consumers prefer for what kind of brands, which media they prefer to learn about the schemes, whether they prefer incentive immediately or at a later date. It was found that deal proneness prevailed across different demographic segments. Price cut nature of promotions was found to be preferred. Out of the nine concepts presented to the respondents; they preferred a price cut nature of promotion on a national brand with an immediate incentive and awareness created at point of purchase. The study would provide insights to a brand manager in designing a scheme.