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A Synopsis On

A COMPARAVATIVE STUDY OF SALES PROMOTIONAL ACTIVITIES OF SONY AND LENOVO LAPTOPS

Submitted By

Shahbaz Ahmad Sarfraz Ahmad


M.B.A. II Year (Marketing) Under The Guidance Of

Prof. Sanjveev Kumar Singh


To Sant Gadge Baba Amravati University, Amravati In The Partial Fulfillment of The Requirement For The Award Of Degree Of

Master of Business Administration

Through Co-ordinate, Department Of Management Studies P.R. Pote (Patil) Education and Welfare Trust Group Of Institutions, Collage Of Engineering And Management Amravati (Maharashtra) 2013-2014

1. INTRODUCATION: SALES PROMOTION


Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes. Sales promotion is needed to attract new customers, to hold present customers, to counteract competition, and to take advantage of opportunities that are revealed by market research. It is made up of activities, both outside and inside activities, to enhance company sales. Outside sales promotion activities include advertising, publicity, public relations activities, and special sales events. Inside sales promotion activities includes window displays, product and promotional material display and promotional programs such as premium awards and contests.

Contents

Consumer sales promotion techniques Trade sales promotion techniques Retail Mechanics Political issues See also References

Consumer sales promotion techniques


Price deal: A temporary reduction in the price, such as 50% off. Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced below cost in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available online. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. Point-of-sale displays:o o o o o o o

Aisle interrupter: A sign that juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: A bin full of products dumped inside. Glorifier: A small stage that elevates a product above other products. Wobbler: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon placed on the 'neck' of a bottle.

o o

YES unit: "your extra salesperson" is a pull-out fact sheet. Electroluminescent: Solar-powered, animated light in motion.

Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each regular meal purchased. Sampling: Consumers get one sample for free, after their trial and then could decide whether to buy or not.

Trade sales promotion techniques


Trade allowances: short term incentive offered to induce a retailer to stock up on a product. Dealer loader: An incentive given to induce a retailer to purchase and display a product. Trade contest: A contest to reward retailers that sell the most products. Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your product on the spot. Training programs: dealer employees are trained in selling the product. Push money: also known as "spiffs". An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function.

Retail Mechanics
Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new marketing initiatives.

Buy x get y free a.k.a. BOGOF for Buy One Get One Free Three for two Buy a quantity for a lower price Get x% of discount on weekdays. Free gift with purchase

Political issues
Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964. Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the most strict regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls.

See also

Alcohol advertising Demand chain Institute of Sales Promotion Marketing Pricing Promotion (marketing) Sales Promotion (magazine) Tobacco advertising

References
1. Jump up ^Taylor, John (1978). How to start and succeed in a business of your own. p. 290. 2. Jump up ^Electroluminescent Point of Purchase Signs 3. Jump up ^Stuart Mitchell, "Resale price maintenance and the character of resistance in the conservative party: 1949-64," Canadian Journal of History 40, no. 2 (August 2005): 259-289. 4. Jump up ^Anonymous (May 13, 2000). "Handcuffs on the high street"

2.

COMPANY PROFILE:

2.1 SONY LAPTOPS

Sony Corporation commonly referred to as Sony, is a Japanese multinationalconglomerate corporation headquartered in Knan Minato, Tokyo, Japan. Its diversified business is primarily focused on the electronics, game, entertainment and financial services sectors. The company is one of the leading manufacturers of electronic products for the consumer and professional markets. Sony is ranked 87th on the 2012 list of Fortune Global 500. Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its four operating segments Electronics (including video games, network services and medical business), Motion pictures, Music and Financial Services. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Mobile Communications (formerly Sony Ericsson), and Sony Financial. Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and third-largest television manufacturer in the world, after Samsung Electronics and LG Electronics. The Sony is a Japan-based corporate group primarily focused on the Electronics (such as AV/IT products and components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial Services (such as insurance and banking) sectors. The group consists of Sony Corporation (holding and electronics), Sony Computer Entertainment (games), Sony Pictures Entertainment (motion pictures), Sony Music Entertainment (music), Sony/ATV Music Publishing (music publishing), Sony Financial Holdings (financial services) and others. Its founders Akio Morita and Masaru Ibuka derived the name from sonus, the Latin word for sound, and also from the English slang word "sonny", since they considered themselves to be "sonny boys", a loan word into Japanese which in the early 1950s connoted smart and presentable young men. The company's current slogan is make. believe. Their former slogan was like no other. Sony sells many of its computer products using the VAIO brand. Sony produced computers (MSXhome computers and NEWSworkstations) during the 1980s, exclusively for sale in the Japanese market. The company withdrew from the computer business around 1990. Sony entered again into the global computer market under the new VAIO brand, began in 1996. Short for "Video Audio Integrated Operation", the line was the first computer brand to highlight visual-audio features.

Sony faced considerable controversy when some of its laptop batteries exploded and caught fire in 2006, resulting in the largest computer-related recall to that point in history.
Sony Corporation is the electronics business unit and the parent company of the Sony Group. It primarily conducts strategic business planning of the group, research and development (R&D), planning, designing and marketing for electronics products. Its subsidiaries such as Sony EMCS Corporation (6 plants in Japan), Sony Semiconductor Corporation (7 plants in Japan) and its subsidiaries outside Japan (Brazil, China, England, India, Malaysia, Singapore, South Korea, Thailand, Ireland and United States) are responsible for manufacturing as well as product engineering (Sony EMCS is also responsible for customer service operations). In 2012, Sony rolled most of its consumer content services (including video, music, and gaming) into the Sony Entertainment Network

2.2 LENOVO LAPTOPS


Lenovo Group Limited is a Chinese multinational technology firm with headquarters in Beijing, China, and Morrisville, North Carolina, United States. It sells personal computers, tablet computers, smartphones, workstations, servers, electronic storage devices, IT management software and smart televisions. In 2012 Lenovo was the world's second-largest personal computer vendor by unit sales. It markets the ThinkPad line of notebook computers and the Think Centre line of desktops. Lenovo has operations in more than 60 countries and sells its products in around 160 countries. Lenovo was founded in Beijing in 1984 and incorporated in Hong Kong in 1988 under its previous name, Legend. Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng China-Affiliated Corporations Index, often referred to as "Red Chips." "Lenovo" is a portmanteau of "Le-" (from Legend) and "novo," Latinablative for "new." The Chinese name (simplified Chinese traditional Chinese pinyin: linxing) means "association" (as in "word association") or "connected thinking" but can also imply creativity. For the first 20 years of its existence the company's English name was "Legend" (in Chinese Lianxiang). In 2002, Yang Yuanqing decided to abandon use of the Legend brand name in order to expand outside of China, as the "Legend" name was already in use by many other businesses worldwide, making it impossible to register in most jurisdictions. In April 2003, the company publicly announced its new name, "Lenovo," with a large media campaign involving huge outdoor billboards and primetime television ads. Lenovo spent 18 million RMB on an eight-week television advertising campaign. The billboards featured the Lenovo logo against blue sky with copy that read, "Transcendence depends on how you think." By the end of 2003, Lenovo had spent a total of 200 million RMB on rebranding. Lenovo acquired IBM's personal computer business in 2005. Lenovo's acquisition of IBM's personal computer division accelerated access to foreign markets while improving both its branding and technology. Lenovo paid US$1.25 billion for IBM's computer business and assumed an additional US$500 million of IBM's debt. This acquisition made Lenovo the third-largest computer maker worldwide by volume.
While many argue that computing is entering a "post-PC era" Lenovo's CEO, Yang Yuanqing, believes that the personal computer is still relevant and that computing is really entering what he calls the "PC plus era." In order to avoid commodity pricing and compete against mobile devices Yang has pushed Lenovo to pursue innovative new PC designs such as its popular Idea Pad Yoga products, ThinkPad Helix, and ThinkPad Twist. Lenovo has achieved significant success with this high-value strategy and it now controls more than 40% of the market for Windows computers priced above $900 in the United States.

In regards to the purchase of IBM's personal computer division, Liu Chuanzhi said, "We benefited in three ways from the IBM acquisition. We got the ThinkPad brand, IBM's

more advanced PC manufacturing technology and the company's international resources, such as its global sales channels and operation teams. These three elements have shored up our sales revenue in the past several years. IBM acquired an 18.9% share of Lenovo in 2005 as part of Lenovo's purchase of IBM's personal computing division. Since then IBM has steadily reduced its holdings of Lenovo stock. In July 2008, IBM's interest in Lenovo fell below the 5% threshold that mandates public disclosure. Although Lenovo acquired the right to use the IBM brand name for five years after its acquisition of IBM's personal computer business, Lenovo used it for only three years. On 7 December 2007, an event called "Lenovo Pride Day" was held. After words of encouragement from management, employees ceremoniously peeled the IBM logos off their ThinkPads and replaced them with Lenovo stickers. ThinkPad is a line of business-oriented laptop computers known for their boxy black design, modeled after a traditional Japanese lunchbox. ThinkPad were originally an IBM product; they have been manufactured and sold by Lenovo since early 2005, following its acquisition of IBM's personal computer division. The ThinkPad has been used in space and is the only laptop certified for use on the International Space Station. Shipments of Think-branded computers have doubled since Lenovo's takeover of the brand, with operating margins thought to be above 5%. Lenovo has aggressively expanded the ThinkPad brand away from traditional laptop computers in favor of tablets and hybrid devices such as ThinkPad Helix and the ThinkPad Twist.

3. RESEARCH METHODOLOGY:
Research in common parlance refers to a search for knowledge. One can define research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Research methodology is a new to a way to systematic solve the research problem. It may be understood as a science of studying how research is done scientifically. Research methodology will be presented in the context of research design, sampling, and data collection, sources of data and description of tools.

3.1 RESEARCH PROBLEMS DEFINITION:


A research problem, in general, refers to some difficult which a researcher experiences in the context of either a theoretical or practical situation and wants to obtain a solution for the same. There are two types of research problem, viz., those which relate to states of nature and those which relate to relationships between variables. At the very outset the researcher must single out problem he/she wants to study i.e. he/she must decide the general area of interest or aspect of a subject matter that he/she wants to inquire into. Through this research, researcher wants to analysis various investments pattern of the investor. Hence the research problem A COMPARAVATIVE STUDY OF SALES PROMOTIONAL ACTIVITIES OF SONY AND LENOVO LAPTOPS is selected.

3.2 RESEARCH DESIGN:


It is the basic plan that guides researcher in conducting the research project. The research includes surveys and fact finding enquiry of different kinds. Hence the descriptive research design will be adopted to study the research problem.

A. Sampling: i. Universe :
Respondents of Amravati city

ii.

Sampling Unit :
The sampling unit is limited to Amravati city only.

iii.

Sample size:
100 respondents

iv.

Sampling Design:
Convenience Random sampling method will be adopted for the proposed research study.

B. Data Collection Methods:


The data required for this study will be collected through two different sources primary and secondary.

a) Primary Source:
Primary data will be collected through interviews & structured questionnaire method.

b) Secondary Source:
Secondary data will be collected from newspaper, journals, magazine, text book, websites etc.

c) Description of tools for Data Analysis:


Simple statistical tools such as average and percentage calculations will be used for data analysis and interpretation.

3.3 LIMITATIONS OF THE RESEARCH:


1. The universe being large, the study will be restricted to Amravati city only. 2. The study was limited to Amravati city 3. Due to limited time & money, it was not peruse to come whole entire, hence the sample size was 50 respondents. 4. The study was limited to one brand.

5. Conclusion and inference made on this basis cannot be assumed


100% Correct and cannot applicable at major level.

4. RESEARCH OBJECTIVE:

1. To Know The Policies Of Both Company Used For Sales Promotion 2. To Know The Advantages Of Sony And Lenovo For Stockholders Benefit. 3. To Know The After Sales Services Of Sony And Lenovo. 4. To Identify The Priority Of Purchasing Of Both Laptop Through Sales Promotion Activity.

5. CHAPTERISATION:
The scheme of chapterisations will be as follows: 1. Introduction 2. Company Profile 3. Research Objective 4. Research Methodology 5. Data analysis and interpretation 6. Conclusion And suggestions Bibliography Appendices

Bibliography-

C.R. Kothari Research methodology Method and techniques, Vishwas Prakashan Second edition 2000, New Delhi

Chunawalla S. A., Commentary on consumer behavior, 2nd edition, 2005, by Himalaya publishing house.

________________ (Shahbaz Ahmad) Research Student

___________________ (Prof. Sanjeev Kumar Singh) Research Guide

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