Reference no: EM132670173

Assignment: A Study of Soap Segment in Indian FMCG Market

Across the globe, the significance of sales promotion in the marketing mix of the Fast Moving consumer Goods (FMCG)' industry has been increasing day-by-day. In the times of slowdown recession in the economy, the marketers may depend on sales promotion techniques to boost up the consumer demand. Sales promotions generally hit directly at the decision and purchasing stages of the buying process. Thus, they may affect the consumer's buying pattern directly producing immediate results. Generally sales promotion is a tool for boosting sales for FMCG sector as certain products are price sensitive.

With various brands of FMCG in the market, the emphasis on sales promotion in India has increased by over 500%-600% from 2000 to 2008. It is estimated that the marketing companies have spent about INR 5,000 crore (approximately $1054 million) as sales promotion expenditure.

However, the usage of techniques to improve sales in FMCG sector requires the manufacturers to understand consumer perceptions, attitudes and preferences while channelling their sales promotional efforts. These efforts should aim at building product awareness, creating interest in the product, stimulating demand by convincing the customers and reinforcing the brand among the customers.