Effect of manufacturer promotions and retailer promotions on consumers: A comparative study

Abstract

With the entry of big players in the Indian retail sector in the form of supermarkets, and the increasing share of branded goods, atleast in some sectors like FMCG, customers today have a wider choice of products to buy than they ever had, and also a wider choice of places to buy them from. Hence, promotion has emerged as an important medium for improving sales for both manufacturers as well as retailers. Promotion has assumed even more importance in the tough economic environment of today, with even the biggest names in FMCG like Hindustan Unilever cutting expenditure on advertising1. Hence, a study of the effects of promotion on consumers can reveal insights into this relatively new phenomenon.