2. ~ Role Of Promotional Offers In The
Growth Of Retail Industry ~

3. Agenda
 Indian Retail Industry- Introduction
Statistics
Organized Retailing
Unorganized Retailing
 Sales Promotion
Description
Why Sales Promotion?
Various Strategies Applied
 Operation Workout
Excerpts From The Interaction
Insights & Conclusions

4. Indian Retail Industry
Hailed as one of the most promising & sunrise
sectors
Is among the Top 5 retail markets in the world
by economic value
Market Size Is Estimated to be around 22 Lakh
Crores (2012)
Expected to grow at a CAGR of above 20% and
reach 30+ Lakh Crores by 2015

5. Indian Retail Industry
• Interesting fact is more than 95% of this
market is occupied by unorganized retailing
(Refers to the traditional formats of low-cost
retailing, for example, hand cart and
pavement vendors, the local kirana
shops, owner manned general
stores, convenience stores etc)

6. Indian Retail Industry
• Remaining 1,00,000 Crore comes under
Organized Retailing
(Organized retailing, in India, refers to trading
activities undertaken by licensed retailers, that is,
those who are registered for sales tax, income
tax, etc.
These include the publicly traded supermarkets,
corporate backed hypermarkets and retail chains,
and also the privately owned large retail
businesses.)

7. ~Sales Promotion is the process of
communication with individuals or
groups by proper informing and
persuading them to accept the
proposed products~

8. WHY SALES PROMOTION ?
• Creating Interest
• To attract new customers & to induce old
customers to buy more
• It helps to remain competitive
• Useful for the clearance of Inventory
• To stimulate the people to make the buying
decision quickly

9. Various strategies applied
• Store Markdowns ( 10% off on entire product
range till -- -- ----)
• Freebies (Buy 1 Get 1)
• Loyalty Schemes ( Earn 100 reward points by
buying ------)
• Coupons (Show this coupon and get 5% off on the
purchase)
• Contests , Scratch n Win offer etc (Buy xxxxx
before xxxx to stand a chance in winning Laptop
etc)

10. Operation Workout
• In the quest of studying the role of
promotional offers practically , I have visited
Mega Mart store , which is in my reach
• MegaMart is the retail wing of Arvind Brands
, a division of Arvind Ltd , The retail
conglomerate
• It offers Brands like Arrow , Lee , Wrangler
, Flying Machine , New Port , US
polo, Excalibur etc

11. MegaMart (Tenali Store)
• Mr Srinivas partnering with Mr Ravikanth took
the franchisee ship of MegaMart before 1 ½
year and established the store in Tenali on
April 2011

12. Excerpts From The Interaction
• All the promotions are initiated by the
company on behalf of its franchisee stores
• All the hoardings regarding offers are supplied
by the company , even the Advt cost for any
regional/local newspapers is covered by them

13. Excerpts From The Interaction
• When asked about various promotions offered
by the store during the year , he stated –
• In January , Flat 50% off on 3 or more
Garments ( New Year Offer)
• During Ugadi , Buy 2 Get 2 Free on Trousers
and Shirts (on selected items) , Also offered 3
T – Shirts worth 1099 at 399

14. Excerpts From The Interaction
• During April to July 1) Clearance Sale (25-30% off
on selected items 2) Flat 20% off on Fresh Arrivals
• Now , Dussera Diwali Super Dhamaka Offers
(From last month 16th onwards)
- On every purchase of above 5000rs they are
offering Mossimo Bag worth 1499 for FREE
- Upto 50% off , varying across brands (Wrangler
40% off, Lee 40% ,Cherokee 50% , Excalibur 30%
,Flying Machine 30%)

15. Excerpts From The Interaction
- On every purchase above 5000 , customer is
eligible to participate in a draw where 6
Volkswagen Polos are offered

17. Takeaways
• When asked about avg bills per month during
non promotion period (last year , current
year)
• After Inception Initially they used to get
subdued response at around 80 bills per
month (last year)
• This year they got around 120 bills per month
on avg basis from july to october

18. Takeaways
• When asked , if he can quantify that amount
of bills , he mentioned around 2lks per month
hesitatingly
• When asked about the walk-ins during non
promotional period over promotional
period(precisely during this dussra, diwali
season), he said -

19. Takeaways
• Definitely more number of people are visiting
the store due to festive season & limited
period offers , also being the major branded
apparel store in the city , walk - ins are
growing every month and from last 20 days it
was very high

20. Takeaways
• When asked about the turnover from the past
20days - he isn't sure about the exact figure
but he mentioned that they are doing 13k-15k
daily from the past 3weeks
• (Even more during the days near festival)

21. Conclusions
• We can clearly conclude from the above
takeaways that promotional offers play a vital
role in the growth of retail stores
• That too when they are attractively tied during
special occasions , sales are subjected to
dramatic variance on positive side

22. Conclusions
• One more thing worth mentioning is –
As far as I can observe MegaMart (Tenali) is
less aggressive in taking these promotions into
public
They are ignoring the fact that-
Promotions + Occasions when combined with
Strong Advertising campaign do WONDERS
(Be it on Walk- ins , Sales , Store Image etc)

23. Conclusions
• Finally I conclude by quantifying my case
-In this case during promotions sales recorded
60% growth over non promotional period
-No of walk ins are significantly higher during
promotional period when compared to regular
one