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- INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
IJM
Volume 7, Issue 2, February (2016), pp. 52-65
http://www.iaeme.com/ijm/index.asp ©IAEME
Journal Impact Factor (2016): 8.1920 (Calculated by GISI)
www.jifactor.com
A STUDY ON EFFECTIVE BRAND PROMOTIONAL STRATEGIES
INFLUENCING CUSTOMERS
Dr. K. Abdus Samad
Director, Jamal Institute of Management, Jamal Mohamed College, Tiruchirappalli
Mr. M. Sabeerdeen
Assistant Professor, Jamal Institute of Management,
Jamal Mohamed College, Tiruchirappalli
ABSTRACT
The paper aims to investigate the effectiveness of brand promotional strategies by Max
retail, which influences the customers to purchase. Data set included use of and influence of
outdoor and in-store promotional tools. These were investigated to determine impact and
effect of the promotions. There is a good response about the hoardings kept in the store and
POP for the internal communications and promotions and through this research study, many
of the customers have shown their neutral opinion about the contests/sweepstakes/games. One
third of the respondents are responded that the paper advertisement helps them to know the
offers of Max.
The majority of the respondents also stated that that the discount coupon is good
stimulator for them to shop at the store. With regard to availability, the store is having
different brands cloths available everywhere without any issue of product out of stock. The
research and data collection done which are limited to Chennai consumers only. Future
investigation can focus on other geographies in the areas where the stores are located.
Key words: Brand, Promotions, Marketing, Promotional mix
Cite this Article: Dr. K. Abdus Samad and M. Sabeerdeen. A Study on Effective Brand
Promotional Strategies Influencing Customers. International Journal of Management, 7(2),
2016, pp. 52-65.
http://www.iaeme.com/ijm/index.asp
1. INTRODUCTION
Promotion may be defined as “the co-ordination of all seller initiated efforts to set up channels of
information and persuasion to facilitate the scale of a good or service.” Promotion is most often
intended to be a supporting component in a marketing mix. Promotion decision must be integrated and
co-ordinated with the rest of the marketing mix, particularly product/brand decisions, so that it may
effectively support an entire marketing mix strategy. The promotion mix consists of four basic
elements. They are advertising, personal selling, sales promotion and publicity
52
Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
Advertising is the dissemination of information by non-personal means through paid media
where the source is the sponsoring organization.
Personal selling is the dissemination of information by non-personal methods, like face-to-
face, contacts between audience and employees of the sponsoring organization. The source of
information is the sponsoring organization.
Sales promotion is the dissemination of information through a wide variety of activities other
than personal selling, advertising and publicity which stimulate consumer purchasing and
dealer effectiveness.
Publicity is the disseminating of information by personal or non-personal means and is not
directly paid by the organization and the organization is not the source.
2. ADVERTISING
The word advertising originates from a Latin word advertise, which means to turn to. The dictionary
meaning of the term is “to give public notice or to announce publicly”. Advertising may be defined as
the process of buying sponsor-identified media space or time in order to promote a product or an idea.
The American Marketing Association, Chicago, has defined advertising as “any form of non-personal
presentation or promotion of ideas, goods or services, by an identified sponsor.” Advertisement is a
mass communicating of information intended to persuade buyers to by products with a view to
maximizing a company’s profits.
The elements of advertising are:
It is a mass communication reaching a large group of consumers.
It makes mass production possible.
It is non-personal communication, for it is not delivered by an actual person, nor is it
addressed to a specific person.
It is a commercial communication because it is used to help assure the advertiser of a long
business life with profitable sales.
Advertising can be economical, for it reaches large groups of people. This keeps the cost per
message low.
The communication is speedy, permitting an advertiser to speak to millions of buyers in a
matter of a few hours.
Advertising is identified communication. The advertiser signs his name to his advertisement
for the purpose of publicizing his identity.
The messages carried in- Newspapers and magazines; radio and television broadcasts; Circular of
all kinds, (whether distributed by mail, by person, thorough tradesmen, or by inserts in packages);
Dealer help materials, Window display and counter – display materials and efforts; Store signs, motion
pictures used for advertising, Novelties bearing advertising messages and Signature of the advertiser,
Label stags and other literature accompanying the merchandise.
3. SALES PROMOTION
Sales promotion is one of the most loosely used terms in the marketing vocabulary. We define sales
promotion as demand. Stimulating devices designed to supplement advertising and facilitate personal
selling. In other words, sales promotion signifies all those activities that supplement, co-ordinate and
make the efforts of personal selling and advertising more effective. It is non recurrent in nature which
means it can’t be used continuously.
4. CONCEPT OF SALES PROMOTION
Sales promotion consists of diverse collection of incentive tools, mostly short-term designed to
stimulate quicker and / or greater purchase of a particular product by consumers or the trade. Whereas
advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes
tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties,
demonstrations, contest); trade promotion (for example buying allowances, free goods, merchandise
53
Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
allowances, co-operative advertising, advertising and display allowances, dealer sales contests); and
sales-force promotion (for example bonuses, contests, sales rallies).
Sales promotion efforts are directed at final consumers and designed to motivate, persuade and
remind them of the goods and receives that are offered. Sales persons adopt several techniques for sales
promotion. Creative sales promotion can be very effective. It is the marketing manager‟s responsibility
to specify promotion objectives and policies.
5. SALES PROMOTION
According to American Marketing Association “ Those marketing activities other than personal selling
advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display
shows and exhibitions, demonstrations and various non-recurrent selling efforts not in the ordinary
routine.”
W.J. Stanton defines sales promotion as all those activities other than advertising, personal selling,
public relations and publicity that are intended to stimulate customer demand and improve the
marketing performance of sellers.
6. PURPOSE OF SALES PROMOTION
Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trial, while a
free management advisory service cements a long-term relationship with a retailer. From the
marketer’s perspective, sales promotion serves three essential roles it informs, persuades and reminds
prospective and current customers and other selected audiences about a company and its products. The
relative importance of those roles varies according to the circumstances faced by a firm.
The most useful product or brand will be a failure if no one knows it is available! Because
distribution channels are often long, a product may pass through many lands between a producer and
consumers. Therefore, a producer must inform middlemen as well as the ultimate consumers or
business users about the product. Wholesalers, in turn must inform retailers and retailers must inform
consumers. As the number of potential customers grows and the geographic dimensions of a market
expand, the problems and costs of informing the market increase. Another purpose of sales promotion
is persuasion. The intense competition among different industries puts tremendous pressure on the
promotional programmes of sellers. In India, even a product designed to satisfy a basic physiological
need requires strong persuasive promotion, because consumers have many alternatives to choose from.
In the case of luxury product, for which sales depend on the ability to convince consumers that the
products benefits exceed those of other luxuries, persuasion is even more important.
Consumers also must be reminded about a product’s availability and its potential to satisfy. sellers
bombard the market place units hundreds of messages every day in the hope of attracting new
consumers and establishing markets for new products. Given the intense competition for consumers‟
attention, even an established firm must constantly remind people about its brand to retain a place in
their minds. Much of a firm’s sales promotion may be intended simply to offset competitors marketing
activity by keeping its brand in front of the market.
SHORT-TERM RESULTS
Sales promotion such as coupons and trade allowances produce quicker, more measurable sales results.
However critics of this strategy argue that these immediate benefits come at the expense of building
brand equity. They believe that an over emphasize on sales promotion may undermine a brand’s future.
COMPETITIVE PRESSURE
If competitors offer buyers price reductions, contest or other incentives, a firm may feel forced to
retaliate with its own sales promotions.
BUYERS’ EXPECTATIONS
Once they are offered purchase incentives, consumers and channel members get used to them and soon
begin expecting them.
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
LOW QUALITY OF RETAIL SELLING
Many retailers use inadequately trained sales clerks or have switched to self service. For these outlets,
sales promotion devices such as product displays and samples often are the only effective promotional
tools available at the point of purchase.
7. TYPES OF SALES PROMOTION
In using sales promotion, a company must fulfill the objectives of the organization. Sales promotion
objectives are derived from broader promotion objectives, which are derived from more basic
marketing objectives developed for the product. The specific objectives set for sales promotion will
vary with the type of target market.
For consumers, objectives include encouraging purchase of larger-size units, building trial among
non users and attracting switches away from competitors‟ brands. For retailers objectives include
inducing retailers to carry new items and higher levels of inventory, encouraging off-season buying,
encouraging, stocking of related items, off setting competitive promotions, building brand loyalty of
retailers and gaining entry into new retail outlets. For sales force, objectives include encouraging
support of a new product or model, encouraging more prospecting and stimulating off-season sales.
Many sales promotion tools are available to accomplish these objectives at the consumer level, and
at the middle men level. For the purpose of convenience, the types of sales promotion methods may be
grouped under three categories:
1. Types of sales promotion directed at consumers.
2. Types of sales promotion directed at dealers and distributors.
8. CONSUMER PROMOTION TOOLS
The main consumer promotion tools include samples, coupons, cash refund offers, price packs,
premiums, prizes, patronage rewards, free trials, product warranties, tie-ins, and point of purchase
displays and demonstrations.
Samples
Samples are offers of a free amount or trial of a product to consumers. The sample might be delivered
door to door sent in the mail, picked up in a store, found attached to another product or featured in an
advertising offer. Sampling is the most effective and most expensive way to introduce a new product.
Coupons
Coupons are certificates entitling the bearer to a stated saving on the purchase of a specific product.
Coupons can be mailed, enclosed in or on other products or inserted in magazine and newspaper
advertisements. Coupons can be effective in stimulating sales of a mature brand and inducing early trial
of a new brand.
Cash Refund Offers or Rebates
These are like coupons except that the price reduction occurs after the purchase rather than at the retail
shop. The consumer sends a specified “proof of purchase” to the manufacturer, who in turn „refunds‟
part of the purchase price by mail. Cash refunds have been used for major products such as
automobiles as well as for packaged goods.
Price Packs
These are offers to consumers of savings off the regular price of a product, flagged on the label or
package. They may take the form or a reduced-price pack which is single packages sold at a reduced
price (such as two for the price of one) or a banded pack, which is two related products banded together
(such as a tooth brush and tooth paste). Price packs are very effective in stimulating short term sales,
even more than coupons.
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
Premiums or Gifts
These are merchandise offered at a relatively low cost or free as an incentive to purchase a particular
product. Sometimes the package itself, is a reusable container may serve as a premium. A self-
liquidating premium is an item sold below its normal retail price to consumers who request it.
Prizes
These are offers of the chance to win cash, trips or merchandise as a result of purchasing something.
Pepsi-cola offered the chance to win cash by matching numbers under the bottle cap with numbers
announced on television. Sometimes the prize is a person, offering the winner either cash or dinner
with actor Sharuk Khan.
Patronage Awards
These are values in cash or in other forms that are proportional to one’s patronage of a certain vendor
or group of vendors. Most airlines offer “frequent flyer plans” providing points for miles traveled that
can be turned in for free airline trips. Cooperatives pay their members dividends according to their
annual patronage. Le Meridian adopted an “honored guest” plan that awards points for users of their
hotels.
Free Trials
Free trails consist of inviting prospective purchasers to try the product without cost in the hope that
they will buy the product. Thus, often we see, auto dealers encourage free test drives to stimulate
purchase interest.
Product Warranties
These are an important tool, especially as consumers become more quality sensitive. Companies must
carefully estimate the sales-generating value against the potential costs of any proposed warranty
programme.
Tie-in Promotions
These are becoming increasingly popular. In a tie in promotion two or more brands or companies team
up on coupons, refunds and contests to increase their pulling power. Companies pool funds with the
hope of broader exposure, while several sales forces push these promotions to retailers, giving them a
better shot at extra display and ad space.
Point-of-Purchase Displays
These take place at the point of purchase or sale. Display of visible mark or product at the entrance of
the store is an example. Unfortunately many retailers do not like to handle the hundreds of displays,
signs and posters they receive from manufacturers. Hindustan Lever often use this tool to promote its
products in the retail market.
Product Demonstrations
Products are being shown in action. Consumers can visit the store and see the usage of product in live
action so that doubts of the consumers can be clarified in the store itself. When a new product is
introduced in the market, the sales promotional tool is often used. For example ultra modern grinder
mixie being used by the company to demonstrate its specialty than the other product.
9. TRADE PROMOTION TOOLS
More sales promotion rupees are directed to the trade than to consumers. Manufacturers seek the
following objectives in awarding money to the trade:
Trade promotion can persuade the retailer or wholesaler to carry the brand.
Trade promotion can persuade the retailer or wholesaler to carry more than it normally carries.
Trade promotion can induce the retailers to promote the brand through featuring, display, and
price reduction.
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
Trade promotion can stimulate retailers and their sales clerks to push the product.
Manufacturers use several promotion tools. Some of which are mentioned below:
Price – Off
Manufacturers may offer a price – off, which is straight discount off the list price on each case
purchased during a stated period of time. The offer encourages dealers to buy a quantity or carry a new
item that they might not ordinarily buy. The dealers can use the buying allowance for immediate profit
or price reductions.
Allowance
Manufacturers may offer an allowance in return for the retailer’s agreeing to feature the manufacturer’s
products in some way. An advertising allowance compensates retailers for advertising the
manufacturer’s product. A display allowance compensates them for carrying a special display of the
product.
Free Goods
Manufacturers may offer free goods, which are extra cases of merchandise to middlemen who buy a
certain quantity of items.
Push Money
Manufacturers may offer push money which is cash or gifts to dealers or their sales force to push the
manufacturer’s goods.
Specialty Advertising Items
Manufacturers may offer free specialty advertising items to the retailers that carry the company‟s name
such as pens, pencil, calendars, paper weights, and memo pads.
As the number of competitive sales promotions have increased, friction has been created between
the company’s sales force and its brand managers. The sales force says that the retailers will not keep
products on the shelf unless they receive more trade promotion money, while the brand managers want
to spend their funds on consumer promotion and advertising.
10. SALES PROMOTION STRATEGIES AND PRACTICES
The sales promotion strategy is an important element in overall marketing strategy. Sales promotio n
strategy involves identification of objectives, effective communication for attracting attention,
allocation of budget, determining the correct promotional mix, introduction of strategic approach and
finally evaluation. We shall study about each one of them briefly here.
OBJECTIVES
The marketer should determine his sales promotion objectives. He should determine what is to be
accomplished and what kind of buyer responses are desired. Sales promotion tasks should be objective
oriented. These tasks are informing, persuading and reminding the customers about the products. The
sales manager should inform consumers about his product and should highlight its special features. He
has not only to inform the customers but persuade them to buy it.
COMMUNICATION
Sales promotion should attract the attention of the target audience. If the prices, discounts, off season
facilities etc, are not adequately and effectively communicated, the effort of sales promotion would be
wasted. A point to be noted here is that the audience evaluates not only the message but also the source
of the message in terms of its credibility. The purpose of communication is to persuade potential
customers to purchase the product.
The sales manager determines the message to be aimed at the target market to gain product
acceptance. The overall marketing objectives define the role of communication in sales promotion.
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
Identifying the target audience is the main task of a sales promotion communication. The audiences
response to the message source helps determine the effectiveness of the message.
11. MEDIUM OF REACH
Sales promotion may adopt different methods for approaching people. Strategic variables are taken into
account while deciding a particular method of sales promotion. Consumer promotion has been
considered a very effective mode of sales promotion; potential consumers are offered samples,
coupons, etc; to promote sales. The point of purchase display is a silent strategy to trigger off buying
decisions. Retailers rely on in-store displays to familiarize customers with their product. A showroom
display makes it easy for prospective buyers to familiarize themselves with the different features of the
product. Trade promotion through buying allowance, free goods, merchandise allowances, push money
etc; help to enhance sales by retailers and traders. Packaging is another important form of promotion,
Business users or Households Middlemen and their Sales Forces
Coupons Free goods
Cash rebates Advertising allowances
Premiums (Gifts) Contests for sales people
Free samples Product demonstrations
Contests Trade shows
Point of purchase displays Exhibitions
Product demonstrations Advertising specialties
Trade shows and exhibitions Point-of-purchase displays
Advertising specialties Training sales forces
particularly for consumer goods. It may carry selling messages and information about the product. A
good package design attracts the shopper’s attention away from other products. It is a proper of blend
of color, design and shape.
The following table shows major sales promotion devices, grouped by Target Audience.
12. LITERATURE REVIEW
Becker & Keith (2014) The purpose of this paper is to estimate individual promotional campaign
impacts through Bayesian inference. Conventional statistics have worked well for analyzing the impact
of direct marketing promotions on purchase behavior. However, many modern marketing programs
must drive multiple purchase objectives, requiring more precise arbitration between multiple offers and
collection of more data with which to differentiate individuals. This often results in datasets that are
highly dimensional, yet also sparse, straining the power of statistical methods to properly estimate the
effect of promotional treatments.
Dash, Mihir (Sep 2009) Even though there are several companies that provide mobile
telephone services, two companies, namely Airtel and Hutch, control the student
segment in Karnataka. In order to attract customers, both companies offer several
special promotional schemes, month to month. Some of these promotional schemes are:
unlimited free SMS, unlimited free outgoing calls within home network, and full talk-
time. The effect of these promotional schemes has been large-scale brand-switching
behaviour of customers. This study extends the authors’ earlier analysis of the extent
of brand-switching in the mobile telephone services among students in Bangalore,
Karnataka. The Markov brand-switching model is extended to include brand loyalty,
and the effect of each combination of promotional strategies adopted by the two
companies is analysed in this new model. The optimal mixes of promotional strategies for
the two companies are then found using game-theoretic techniques. Finally, as the
analysis above is based on sample data, sensitivity analysis is performed to assess the
effect of sampling/estimation error on the results.
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
Afra, Kia (Jun 2010) Although it was historically overshadowed by Universal City's grand
opening in March 1915, Selig Polyscope's July 1915 promotional excursion commemorating the
opening of the Selig Zoo offers significant insight into the relationship of film studios, exhibitors, the
press, and audiences during the 1910s. This paper examines Selig's two-part promotional strategy to
reach audiences and fans: directly, in the form of allowing patrons and locals to interact with Selig stars
producing The Seven Suffering Sisters onboard the journey; and indirectly through press editors who
were encouraged to clip articles in Selig's house organ, Paste-Pot & Shears, and to cover the Selig
Movie Special at every stop on its trip from Chicago to Los Angeles. In this way, Selig circumvented
uncooperative exhibitors and ensured local newspaper promotions for its films and stars.
Sridhar Samuet.al (Jan 1999), The effectiveness of advertising alliance (in which 2 brands from
different product categories are featured together in an advertisement) for introducing new brands is
investigated. The degrees of complementarity between the featured products, type of
differentiation strategy, and type of ad processing strategy are identified as important factors in
determining ad effectiveness. The conceptualization captures the effects of these factors on brand
awareness, brand accessibility, brand beliefs, belief accessibility and brand attitudes. The theory was
tested using print advertisements to manipulate the 3 factors in conditions of high consumer
involvement. The results show an interesting pattern of interactions among the factors, which has
important implications for managers of new and established brands.
13. RESEARCH PROBLEM
The research problem in this study is associated with the effectiveness of brand promotional strategies
by Max Retail which influences the customers.
RESEARCH OBJECTIVES
The prime objective of the study is to analyze the effectiveness of overall brand promotional
activities of Max.
The study aimed to find out the effectiveness of various internal communications tools at Max
store.
Another objective of the study is to know the effectiveness of Loyal Reward Program for
making the regular shopping at Max.
To understand the overall satisfaction of customers of Max.
14. RESEARCH METHODOLOGY
Research Methodology is a plan of action for a research project and explains in details how data are
collected analyzed and interpreted the data so that they will provide meaningful information. It is a way
to solve the research problem .It not only includes the research methods but also consider the logic
behind the methods used in the context. It’s done order to get.
To achieve new insights on to the study.
To portray accurately the characteristics of a particular individual, situation or a group.
To determine the frequency.
RESEARCH DESIGN
“A research design is the arrangement of condition for collection and analysis of data in manner that
aims to combine relevance to the research purpose with economy in procedure.” In fact the research
design is a conceptual structure within which research is conducted it constituted the blueprint for the
collection, measurement and analysis of the data.
The research falls into category of descriptive type, which includes surveys, data collections and
analysis. The major purpose of this descriptive research is to describe the state of affairs as it exists at
present.
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
UNIVERSE
The universe of the research study is the customers of Max in Chennai city in the study period.
SAMPLE SIZE
In this research the targeted respondents from the population is 150 due to limited time placed at the
disposal of the research.
SAMPLING METHOD
Simple random sampling technique has been used to select the sample. A simple random sample is a
group of subjects (a sample) chosen from a larger group (a population).
PILOT STUDY
Pilot study is the preliminary step for the formulation of the Questionnaire. The researcher has
conducted a pilot study with 20 customers and 2 Managers/Executives to know the feasibility. Then
the researcher collected the required correct information and necessary changes were made.
15. METHOD OF DATA COLLECTION
The data was collected using structured questionnaire through interview session to the customer.
DATA ANALYSIS
The researcher administered well-structured questionnaire for the purpose of collecting data. The
researcher also used SPSS Package and MS-Excel for the calculation. The statistical tools that are used
are,
Chi-square Test
ANOVA Test
16. SCOPE OF THE STUDY
This study basically tries to discover the current practice of brand promotional strategies and its
effectiveness by measuring, analyzing and finally suggesting the effective promotional strategies for
the future.
17. LIMITATIONS OF THE STUDY
All the researches are hindered in their smooth flow by some unforeseen problems. The problems arise
in the form of constraints by budget, time and scope of the study. The current project was also faced by
certain problems. Some of the problems faced in the course of the research are as follows:
A strong unwillingness on the part of the customers, to participate and aid the research.
The respondents may not be true in filling the questionnaire.
The study is limited to Max retail store in Chennai
60
Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
18. STATISTICAL ANALYSIS AND INTERPRETATIONS
CHI-SQUARE TEST
TABLE 1GENDER AND IMPACT OF POP
Hypothesis: There is no association between gender and impact of point-of-purchase displays
Cross Tabulation
Point-of-Purchase displays
Strongly Strongly Total
Agree Neutral Disagree
agree Disagree
Male 26 35 20 6 2 89
Gender
Female 15 31 14 1 0 61
Total 41 66 34 7 2 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 4.763a 4 .312
Likelihood Ratio 5.772 4 .217
Linear-by-Linear Association .631 1 .427
N of Valid Cases 150
4 cells (40.0%) have expected count less than 5.
Chi-square value: 4.763
Degrees of freedom: 4
P-value: .312
Result: Hence the P-value is Greater than 0.05, it is not significant. We accept the Hypothesis. There
is no association between gender and impact of point of purchase displays.
TABLE 2 GENDER AND SATISFACTION WITH THE DISCOUNTS AND OFF SEASON
SALES
Hypothesis: There is no association between gender and satisfaction with discounts and off season
sales
Cross tabulation
Discounts and off season sales
Strongly Strongly Total
Agree Neutral Disagree
agree Disagree
Male 25 32 23 5 4 89
Gender
Female 21 19 19 1 1 61
Total 46 51 42 6 5 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 3.401 4 .493
Likelihood Ratio 3.661 4 .454
Linear-by-Linear Association 1.083 1 .298
N of Valid Cases 150
4 cells (40.0%) have expected count less than 5.
61
Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
Chi-square value: 3.401
Degrees of freedom: 4
P-value: .493
Result: Hence, the P-value is greater than 0.05, it is not significant. We accept the Hypothesis. There
is no association between gender and satisfaction with discounts and off season sales.
TABLE 3 GENDER AND IMPACT OF LOYALTY PROGRAM
Hypothesis: There is no association between gender and influence of max loyalty program
Cross tabulation
Loyalty Reward Program
Strongly Strongly Total
Agree Neutral Disagree
agree Disagree
Male 21 45 13 9 1 89
Gender
Female 14 23 22 2 0 61
Total 35 68 35 11 1 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 11.459a 4 .022
Likelihood Ratio 11.944 4 .018
Linear-by-Linear Association .116 1 .733
N of Valid Cases 150
3 cells (30.0%) have expected count less than 5.
Chi-square value: 11.459
Degrees of freedom: 4
P-value: .022
Result: Hence the p-value is lesser than 0.05, it is significant. We reject the Hypothesis. There is
association between gender and influence of max loyalty program.
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
TABLE 4 GENDER AND IMPACT PAMPHLET ADVERTISEMENT
Hypothesis: There is no association between gender and impact of pamphlet advertisement
Cross tabulation
Pamphlet advertisement
Strongly Total
Agree Neutral Disagree Strongly Disagree
agree
Male 16 36 25 10 2 89
Gender
Female 16 25 14 4 2 61
Total Male 61 39 14 4 150
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 2.519a 4 .641
Likelihood Ratio 2.539 4 .638
Linear-by-Linear Association 1.405 1 .236
N of Valid Cases 150
2 cells (20.0%) have expected count less than 5.
Chi-square value: 2.519
Degrees of freedom: 4
P-value: .641
Result: Hence, the P-value is greater than 0.05, it is not significant. We accept the Hypothesis. There
is no association between gender and impact of pamphlet advertisement.
ANOVA TEST
TABLE 5
Sum of Squares df Mean Square F Sig.
Between Groups 3.241 4 .810 .878 .479
Max Price deal is affordable
Within Groups 133.753 145 .922
and attractive
Total 136.993 149
MAX’ service is good Between Groups 3.906 4 .976 1.349 .255
compared to all other multi Within Groups 104.928 145 .724
brand retailer Total 108.833 149
Between Groups 2.655 4 .664 .828 .510
In MAX latest fashion
Within Groups 116.285 145 .802
Available
Total 118.940 149
Between Groups 1.625 4 .406 .511 .727
Contests/sweepstakes/games
Within Groups 115.208 145 .795
influencing to shop at Max
Total 116.833 149
Promotional activities at the Between Groups 3.839 4 .960 1.170 .327
catchment helps to know the Within Groups 118.994 145 .821
offers of Max Total 122.833 149
INTERPRETATION
From the above ANOVA table, it is inferred that age was considered as an analyzing factor the find out
the significant relationship with the dimensions related to the study age is not found to be significant
with all the five factors, affordable price deal, service is good, latest fashion available, influence of
contests/sweepstakes/games and promotional activities at catchment.
63
Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
19. MAJOR FINDINGS OF THE RESEARCH:
Majority of the respondents are male shoppers. Most of the respondents belong to the age
group of 21-30 years age. 38% of the respondents are undergraduates. Nearly 2/5 th of the
respondents are employed and salaried. One third of the respondents come under students and
housewives categories.
53.3% of the respondents responded agreed that the max brand is coming first to the mind
when they think to buy clothing.
Half of the respondents in the sample taken for the research responded agreed that the Max
shopping environment and store design is attractive and trendy.
42% of the respondents responded agreed that the max’ is having different brands cloths
available everywhere without any issue of product out of stock.
45.3% of the respondents responded agreed that the in max’ latest fashion available.
46% of the respondents are agreed that the max’ service is good compared to all other multi
brand retailer.
39.3% of the respondents responded agreed that the Max price deal is affordable and
attractive.
34% of the respondents responded agreed that the satisfied with the discounts and off season
sales.
45.3% of the respondents responded agreed that the loyal reward program induces to shop at
Max regularly.
52.7% of the respondents have given their neutral opinion that the contests/sweepstakes/games
influencing them to shop at Max.
44% of the respondents responded agreed that the Point-of-Purchase displays are helping them
to know offers inside the store.
44% of the respondents responded agreed that the combo-pack deal of Max is attractive to
buy.
41.3% of the respondents responded agreed that the discount coupon is good stimulator for
them to shop.
40.7% of the respondents responded agreed that the pamphlet advertisement helps them to
know the offers of Max.
37.3% of the respondents responded agreed that the paper advertisement helps them to know
the offers of Max.
41.3% of the respondents responded agreed that the banners / hoardings kept in the city helps
them to know the offers.
48% of the respondents responded agreed that the hoardings kept in the store helps them to
know the offers.
50.7% of the respondents responded agreed that the promotional activities at the catchment
help them to know the offers.
46% of the respondents responded agreed that the word of mouth from friends / neighbors
helps them to know the offers.
44% of the respondents responded agreed that the Max overall satisfaction is good compared
to other brands.
There is no association between gender and point of purchase displays.
There is no association between gender and satisfaction with discounts and off season sales.
There is association between gender and influence of max loyalty program.
There is no association between gender and pamphlet advertisement.
64
Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
- International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 52-65 © IAEME Publication
Age is not significant with all the five factors (affordable price deal, service is good, latest
fashion available, influence of contests/sweepstakes/games and promotional activities at
catchment).
20. IMPLICATIONS
Through this research study, many of the customers are showing their neutral opinion about
the Max’ contests/sweepstakes/games, so it is suggested to focus on contests / games to attract
the customers and make them repeated customers.
There is a good response about the hoardings kept in the store and POP, thus it is suggested to
focus more of these kinds as these are the most prominent promotional strategies as for as in
the retail industry is concerned.
Only one third of the respondents are agreed that the paper advertisement helps them to know
the offers of Max, so need much focus on paper advertisements and also need to increase the
frequency of above the line advertisement attractively in order to be in top of mind awareness
when it comes to the branded retail.
Availability of different familiar brands is lacking in the store, so need to focus on the wide
range in order to increase the sales and customer base for the future.
Customers are very satisfied with service of max, thus it is suggested to maintain the quality
of service for the retention of customers.
Also suggested to increase the availability, the collections, increase stocks on kid’s collections
as specified by the respondents during the interviews conducted for this research.
With regard to loyalty program, it is recommended to offer special points (Triple times than
the regular one) to customers for their purchases on their/spouse’/kids’ birthday, and
providing a small gift on the day, this will make them emotional and associated with the retail
brand in the present and the future as well.
21. CONCLUSION
This study has been taken to measure the effectiveness of the promotional strategies, it is concluded
that Max customers are happy with the service provided by the store and the shopping environment.
Currently practicing promotional strategies showing good results in terms of awareness about the
discounts and other offers to the target audiences and recommended to focus on marketing
communications on a frequent basis especially BTL and ATL activations in order to reap the benefits
of increased conversion of customers for the retail organization and increased customer base for the
business. Though the research focused on promotional strategies deployed by one retailer in a
geographical area, the future investigation can also focus on other geographies in the areas where the
stores are located and it can also be focus on other formats of the retail.
REFERENCES
[1] Wells, Burnett & Moraiarty – Advertising Principles and Practices ; Prentice Hall
[2] J. V. Vilanilam & A. K. Varghese – Advertising Basics – A Resource Guide for
Beginners: Response Books, Sage Publications
[3] Advertising and Sales Promotion Management – S.L.Gupta, V.V.Ratra
[4] Advertising Management – concepts and cases Mahendra Mohan.
[5] Branding – Geoffrey Randoll
[6] Strategic Brand Management – Kapferer
[7] Principles and Practice of Marketing – C.B. Memoria and R.L.Joshi
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Dr. K. Abdus Samad and M. Sabeerdeen, “A Study on Effective Brand Promotional Strategies
Influencing Customers” – (ICAM 2016)
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