Impact of Sales Promotion on Consumer Satisfaction and Loyalty with Reference to Selected Fast Moving Consumer Goods in Nanded District

Abstract

This study seeks to demonstrate the effect of sales promotion simultaneously on consumer s purchasing preferences towards FMCG products Fast-moving consumer goods (FMCG) can be defined as packaged goods that are consumed or sold at regular and small intervals. The prices of the FMCG are low and profits earned are more dependent upon the volume sales of the products. Fast-moving consumer goods (FMCG) sector is the fourth largest segment in the Indian economy with Domestic and Personal Care accounting for 50 percent of FMCG sales in India. Increasing consciousness, easier access, and shifting lifestyles have been the crucial evolution drivers for the segment. FMCG market in India is anticipated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20 percent - 25 percent per annum, which is probable to boost revenues of FMCG companies. Revenues of the FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are expected to touch US$ 103.7 billion in 2020. The sector observed a growth of 16.5 percent in value terms between July-September 2018; supported by moderate inflation, increase in private consumption and rural income. newlineThe FMCG market can be broadly categorised as Personal Care, Household care, Food and Beverages, and Others. Today, most of the retailers are struggling to attract customers due to the competitiveness of the market. They use strategic techniques to attract customers and establish long term success. In this context, most of the companies use sales promotion as a weapon to attract customers, buying preferences and in turn earn a high market share and long term profit. The purpose of this study was to examine the effect of sales promotion on consumer satisfaction and loyalty in Nanded district. newline