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BRL-002: Retail Marketing and Communication

BRL-002: Retail Marketing and Communication

IGNOU Solved Assignment Solution for 2021-22

If you are looking for BRL-002 IGNOU Solved Assignment solution for the subject Retail Marketing and Communication, you have come to the right place. BRL-002 solution on this page applies to 2021-22 session students studying in BBARL, DIR courses of IGNOU.

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Assignment Code: BRL-002/TMA/2021-22

Course Code: BRL-002

Assignment Name: Retail Marketing and Communication

Year: 2021-2022

Verification Status: Verified by Professor

Marks: 100


Q1) Marketing deals with customer solutions. Explain this concept in the light of retail marketing.

Ans) Traditional retail marketing refers to how retailers promote the items and services of their physical stores. Traditionally, it has been the responsibility of retailers to market and sell the goods they have purchased (wholesale) from designers. Customer solutions are the focus of marketing. Retail marketing is perhaps even more difficult than other types of marketing because it necessitates establishing a strong relationship with your customers that motivates them to choose your product over another—not just because the product is "better," but because of all the other aspects of the shopping experience that support their decision.

That means that when it comes to retail marketing, you must consider all of the contact points that surround your customer's interaction with your products. Given how competitive some product categories are, marketing is even more vital in retail. You're leaving it up to your customers to remember you if they get interested in a product you provide without a sound marketing approach. Because retail products are frequently purchased again, unlike subscriptions or one-time purchases, businesses must rely on marketing efforts to win back customers after each sale. Marketing is more important in retail than in any other industry for increasing a customer's lifetime value (LTV).

Marketing Myopia

Sellers who are preoccupied with the physical product rather than the needs of their clients are said to have ‘marketing myopia.' Marketers who are successful go beyond the features of the items and services they sell. For example, Coca-Cola is considerably more to customers than just a beverage: it has become an American symbol with a long history and meaning.

Exchange: It is a fundamental marketing principle. It's the procedure of receiving a desired item from someone in exchange for something else. There are five prerequisites that must be met:

  1. There are at least two parties. Each party has something that might be of value to the other party.

  2. Each party is capable of communication & delivery.

  3. Each party is free to accept or reject the exchange offer.

  4. Each party believes it is appropriate or desirable to deal with the other party.

Customer Satisfaction: How well the product performs in comparison to the customer's expectations after a purchase. Customers' expectations must be set at an appropriate level, not too low or too high. Customer satisfaction and value are the cornerstones of developing and nurturing customer relationships.

Q2) What do you meant by Personal selling? Explain the importance of Personal selling from the point of view of manufacturers.

Ans) Personal selling is a promotional tactic in which one person (for example, a salesman) uses skills and techniques to develop personal relationships with another person (for example, a customer or those engaged in a purchase decision) that result in both parties gaining value. Most of the time, the salesperson's "value" is achieved through the financial rewards of the sale, whereas the customer's "value" is gained through the benefits derived from using the product. Personal selling, on the other hand, isn't necessarily about getting a customer to buy anything. For example, selling might be used to merely transmit information. Because selling entails personal contact, this advertising strategy is frequently conducted in person or over the phone, while emerging technologies allow for communication via the Internet, such as through video conferencing or text messaging (e.g., online chat).

A ‘salesman' is someone who sells items to you using any of the above techniques, and the practise is known as 'personal selling' or ‘salesmanship.' Salespeople are employed in greater numbers than any other marketing-related career. According to the Indian Department of Labour, about 110 million people, or roughly 11% of the total work force, are directly involved in selling and sales-related jobs.

A personalised sales pitch can be tailored to specific prospects and simply changed if the desired action does not occur. Personal selling, on the other hand, is far more expensive than advertising and is typically utilised only when the high cost is warranted. Personal selling may be required for the marketing of a sophisticated computer system, but not for the presentation of a new product to millions of consumers. Door-to-door selling and house demonstration parties are two more types of personal selling that are not employed with high-end products. Personal care products, cosmetics, cookware, encyclopaedias, books, toys, food, and other items of special interest to homemakers are commonly sold using these two personal selling approaches. To maximise its impact, personal selling should ideally be accompanied by advertising.

Importance from Manufacturers Point of View

Personal selling, unlike advertising, occurs during all three phases of the purchase process: pre-transactional, transactional, and post-transactional. It cultivates the market, negotiates the transaction, and eliminates post-purchase dissonance because it is a two-way type of communication. Personal selling, on the other hand, is distinguished from advertising by the negotiation of transaction, which makes it an efficient medium of selling. Aside from that, personal selling has a number of advantages, including: Personal selling is more adaptable and versatile to many purchase scenarios. A salesperson can adjust to the demands, reasons, impulses, and other behavioural characteristics of prospective customers in order to transmit the message and close the purchase.

Personal selling reduces the likelihood of squandered effort since, unlike advertising, the entire effort is concentrated on a specific target buyer. Furthermore, there is very little chance of message diffusion or distortion. Diffusion happens when a message reaches a wide number of unanticipated audiences, while distortion occurs when a huge quantity of messages are transmitted or flashed at consumers, resulting in noise. The salesperson is in a better position to focus his message on only qualified customers and to correct distortions by appropriately manipulating the message. When customers have questions, the salespeople are always available to help.

Q3) State the influence of situational variables on shopping behavior in a planned shopping center?

Ans) As you should know, situational variables are all those aspects that are specific to a time frame and location of observation and do not result from knowledge of personal (intra individual) and stimulus (choice alternative) attributes. Store location and layout, as well as the time of day and the presence (or absence) of people, are examples of such attributes. There are three distinct dimensions of situational influence that can be characterised as follows:

Physical Setting: The physical setting refers to the location of the retail outlet, as well as the surroundings in which the customer lives in order to go to the shopping mall. There are 'far shoppers,' who drive more than half an hour to reach their shopping destination, and 'near shoppers,' who travel in less time. At the same time, there are late customers who shop in the evenings and early shoppers who ride the bus to the retail outlet in the morning. Another physical issue is the location of a store. Starbucks has done an excellent job in terms of store location. It's got the procedure down to a science; you can't go more than a few miles without seeing a Starbucks. Starbucks coffee is also available at numerous grocery shops and airports—basically anywhere there is foot traffic.

Social Setting: The social setting describes the presence or absence of individuals, as well as their social roles, role qualities, and interaction opportunities. Those who shop with others are referred to as'social shoppers,' while those who shop alone are referred to as ‘solitary shoppers.' What you buy, how much you buy, and when you buy it all depends on your social status. Maybe you've seen Girl Scouts selling cookies outside of grocery shops and other retail businesses but didn't buy anything. Companies who sell their products during parties, such as Avon and Tupperware, realise that the social context you're in matters. When you're at a Tupperware party thrown by a friend, you don't want to let her down by not purchasing anything. Furthermore, everyone at the party will think you're a scrooge.

Temporal Aspects: This relates to elements such as time available for shopping and seasonal variables, which are especially obvious in the context of both fashion shopping and perishable goods such as milk purchased during the day and fashion apparel purchased later in the day.

Situational impacts are a set of circumstances that determine how purchasers react, whether they buy your product, buy more products from you, or buy nothing at all. Physical variables, social considerations, time factors, the reason for the buyer's purchase, and the buyer's mood are among them.

Q4) Explain Maslow's Hierarchy of Need.

Ans) Abraham Maslow hypothesized that within every human being there exists a hierarchy of five needs:

  1. Physiological

  2. Safety

  3. Social

  4. Esteem

  5. Self-Actualization

This theory is a conceptual guide that appeals to the senses. However, it can be difficult to maintain it at times. For example, why would someone like Dr. Sharma spend a few years in a doctoral programme while still trying to raise a family of four on Rs. 12,000 per month if "self-actualization" shouldn't come before addressing lower-order needs? Nonetheless, one conclusion that can be drawn from studying Maslow's theory and others is that different people in different situations will be motivated in different ways and toward different objectives, depending on the needs that have been met. That is, while Malow's precise elements may not be applicable in all instances, the concept of motivation working in a hierarchical form is a sound one. However, to better clarify this, we will utilise the example of home consumers and their various levels of needs to conclude our discussion on this model.

Malow’s Hierarchy of Needs for Household Customers

Physiological Needs: Food, clothing, and a place to stay. Air, food, drink, shelter, clothes, warmth, sex, and sleep are biological necessities for human survival. The human body cannot function optimally if these demands are not met. Physiological needs are the most important, according to Maslow, because all other wants are secondary until these are addressed.

Safety Needs: Insurance, as well as vehicle safety features. When an individual's physiological demands are met, security and safety become more important. In their daily lives, people seek order, predictability, and control. These requirements can be met by the family and society (e.g. police, schools, business, and medical care). Emotional security, financial security (e.g., job, social welfare), law and order, fearlessness, social stability, property, and health and wellness are only a few examples (e.g. safety against accidents and injury).

Social Needs: Designer apparel, greeting cards Following the satisfaction of physiological and safety requirements, the third level of human wants is social, which includes feelings of belonging. A human emotional need for interpersonal interactions, affiliating, togetherness, and being a part of a group is referred to as belongingness. Friendship, intimacy, trust, and acceptance, as well as receiving and giving affection and love, are all examples of belongingness demands.

Esteem Needs: Self-gifting, store selection Self-worth, accomplishment, and respect are among the fourth level of Maslow's hierarchy of needs. Maslow divided esteem demands into two categories: self-esteem (dignity, accomplishment, mastery, independence) and the desire for others' respect or repute (e.g., status, prestige). For children and teenagers, the need for respect or reputation is the most crucial, according to Maslow, and it comes before true self-esteem or dignity.

Self-Actualization Needs: Self-improvement exercises They are the highest level in Maslow's hierarchy, referring to a person's potential realisation, self-fulfilment, personal growth, and peak experiences. This level is defined by Maslow (1943) as the desire to achieve everything one can, to become the best one can be. This desire may be perceived or focused on quite specifically by individuals. One person, for example, may have a tremendous desire to be the perfect parent. In another, the desire may be manifested in terms of money, academics, or athletics. Others may convey their feelings through art, such as paintings, photographs, or inventions.

Q5) How can one differentiate between different stores and on what parameters?

Ans) One can differentiate between different stores on various parameters such as:

Specialty Store: Tanishq, Time Zone, Swarovski, The Body Shop: - Because the target segment consumers who come to buy in these stores are very specific in their choice or have a clear choice and attitude, the promotional strategy in these stores revolves around the product and its features and brand value, as the target segment consumers who come to buy in these stores are only attracted to the specialisation of a product based on its brand value and products. They prefer to pay more, but they are picky about their brand identification, which gives them pride and a place in society.

Departmental Store: Westside, Shoppers Stop, Pantaloons, Shoppers Stop, Shoppers Stop, Shoppers Stop, Shoppers Stop, Shoppers Stop a way of life The promotional scheme in these stores revolves around the variety of offerings; here, the customer segment is aware that they are purchasing a specific branded product and is typically interested in the variety of range available, multiple brand choice, and has only the best suitable product in mind. They are organised into each department of the store, with each brand having its own selling space.

Super Market: Food World, Spencer's My, and Miwe are examples of somewhat large, low-cost, low-margin self-service operations that compete with local mom-and-pop shops. These establishments use a promotional mix of volume sales to entice customers by offering substantial discounts on large amounts of a wide variety of products in larger quantities, such as five bananas for the price of five kilogrammes of tomato.

Convenience Store: In & Out, Cash "n" Carry, 7-Eleven, and other convenience stores are relatively tiny stores with extensive hours of operation. These are small format businesses positioned near gas stations and vantage points in residential neighbourhoods that focus on customer convenience, are open at odd hours, and stock all of a customer's daily needs with a wide range of products at reasonable prices. Their promotional strategy emphasises around client convenience, such as offering up to a 5% discount on all goods during happy hours, which run from 0 to 8 a.m.

Discount Store: Wal-Mart, Big Bazaar, as an example: These stores are focusing on hourly promotional schemes,' where the consumer comes with the expectation that he will be presented with an instantaneous scheme or offer at any time. As a result, the manager must constantly queue up schemes for various product categories. Promotions are typically held at off-peak hours, such as 11 a.m. to 4 p.m., in order to entice buyers to purchase more than they need.

Super Store: Reliance Mart has about 20,000 to 35,000 square feet of selling space: These stores have a promotional objective of all solutions under one roof, where you can buy everything from vegetables to lifestyle products to dining out at their food court.

Hyper Markets: SPAR, STAR BAZAAR, and other stores with an area of 80,000 square feet or more combine grocery and discount shop concepts into one. Originating in France - Carrefour These are large format retail facilities where you can find all major brands under one roof, in addition to their own in-house brands. It's one location where you can find all brands with a wide range of products. These can't have a single promotional mix; it's a community promotion because it caters to a large audience, therefore marketing for such areas, such as Great India Place Mall Gurgaon, are done through mass media such as radio and television.

Discount Clubs: In the United States, SAMS CLUB is a brand that offers clients product purchase offers based on club memberships and promotions based on member categories.

Category Killers: Home Depot, Vishal Chain: - they are tiny, localised chains of stores that work on a mix strategy, offering virtually everything from utensils to garments and daily use products and working in the middle category, they are a mix of discount store, convenience store, and to some extent super store. They are known as category killers because they arrange their promotional mix based on product, price, and location.

Q6) Explain Relationship selling with one example.

Ans) The issue with one-time sales in a circumstance where the buyer is urged to return is that if they are disappointed, they will go somewhere else next time. Worse yet, they might warn their friends not to buy. In many sales scenarios, building the appropriate relationship is the preferred option. 'Consultative Selling,' for example, is another name for relationship selling.

It's the People!

The relationship between the salesperson and the person performing the buying is a crucial aspect of selling when recurring sales are required. If the person buys frequently, the relationship can even turn into a genuine friendship.

The Centrality of Trust

In a relationship, one of the most important factors is trust. This takes time to establish, especially for the buyer to believe that the seller is constantly looking out for their best interests. If the salesperson's trust is challenged or broken, he or she will have to put in a lot of work to save the relationship - and even then, it may be lost. Whereas the buyer has the most to lose in one-off sales, the seller can be the biggest loser in relationship sales if they sell something that isn't wanted. Not only may the item be returned, but any future sales could be lost as well. In this strategy, trust-building is such a significant activity that it might consume up to half of your time. However, this is compensated by a brief closure (as opposed to the long objection handling of one-off selling).


This style of selling must result in a win-win situation for both parties. The seller wants the buyer to feel like they received a good bargain, and the buyer doesn't want the vendor to go out of business, even if they desire a good price. Aside from price, there are many other factors to consider, such as goodwill and future sales potential. Relationship marketing takes place in any setting where relationships are valued. When a husband and wife are bargaining about something, they will have a better chance of succeeding if they both consider the relationship as well as what they each desire.

B2B (Business to Business)

In business-to-business scenarios, such relationship selling is common, especially when selling and buying are both professional activity and full-time salespeople deal with full-time buyers. When a knowledgeable buyer has taken a variety of sales training courses, they can spot sales techniques from a mile away. Objections and closing are still there, but they are significantly more delicate and with a greater care for the relationship, and any sort of dishonesty is generally avoided. The salesperson's primary goal is to assist their clients in solving genuine problems, and they frequently spend time learning about their customers' businesses through techniques such as SPIN Selling and Customer-Centered Selling.

Relationships Under Pressure

In actuality, commercial salespeople frequently have monthly quotas to reach, and as a result, they may utilise more pressurised approaches than they want. This is a risky approach because it can badly harm the connection, putting even more pressure on the unsuspecting salesperson who slips into the gulf.

Q7) Explain few strategies to be used for budget sourcing.

Ans) Any retail strategy is determined by the type of customer or customer segment who visits that store. Consider store retailing of computers and peripherals, which promotes PCs and Laptops. The usual trend in this market sector is to promote products through bundled deals. For example, if the margin on a high-end PC sale is Rs. 4000, a printer with an MRP of Rs 2500 (cost to firm is Rs 1250) might be provided to customers at an MRP of Rs 1000. The consumer will then have no objection to paying the difference and increasing the utility value. The net margin reduction would be only Rs250, but the bundled offer will increase sales from 2 PCs per day to possibly 5 PCs per day, thereby expanding the customer network who will return to the retailer to purchase ink cartridges. This type of promotional scheme is known as adjustable costing scheme and budgeting.

On the other hand, let's say a company has a marketing budget of Rs 5000 per outlet for a month, which becomes Rs 2.5 Lakh for 50 outlets, and the company places a half-page advertisement in the newspaper with the contact numbers of these outlets listed by area; this advertisement could then be squeezed down to a quarter-page BRs1.5 Lakh, saving Rs]Lac or Rs 2000/- per shop, and the retailer can now offer one pen drive free along with the above offer.

Another alternative scheme design can be done, in which the retailer has some additional margins coming in due to schemes provided by the principal organisation, for example, if a retailer purchases a machine for Rs 25k from the manufacturer and sells it for Rs 26k in the market, the retailer gets a volume discount on picking up a large quantity of stock, which means that if he sells 10 machines in a month, his purchase price is Rs 25k, if he purchases 11-15 it is Rs24.5k. Another scenario is where the firm assists the retailer or the retailer is required to make further efforts to clear stock. This can occur when a competitor company has developed a product with additional features at a lower price. The merchant will have a difficult time clearing his existing stock, so the manufacturer will help by lowering prices and clearing existing model stocks. This type of sales promotion is known as stock clearance budgeting and promotional plans.


Q8) How does advertising help in product promotion? Explain various categories of advertising with specific examples.

Ans) Advertising aids in the promotion of a product in a variety of ways. Advertisers and clients have a wide range of expectations. Advertisements should be tailored to the organization's objectives for the best outcomes. The following are the precise features of what it is capable of:

  1. Creating awareness

  2. Creating and developing favourable interest and attitudes

  3. Developing a brand identity

  4. Positioning a product in the market

  5. Sustenance of relationships

  6. Persuasion

  7. Creating a demand

  8. Build up enquiries

  9. Support distributors

  10. Launching new products

  11. offsetting competition

Categories of Advertising

For product/service advertising and promotion, these forms of advertising could be placed under any of the following categories:

Flyers or Brochures: Many desktop publishing and word-processing software packages can create eye-catching tri-fold brochures (a page folded in thirds measuring 8.5 inches by 7 11 inches). Brochures may include a lot of information if they're well-designed, and they're becoming a popular way to advertise.

Mailing Lists: Direct mail sent to your consumers can be extensively personalised to fit their personalities and demands. You might want to compile a mailing list of your current and prospective clients. Collect customer addresses by noting addresses on checks, asking them to fill out information cards, and so on. Maintain an online, up-to-date list. It's easy for mailing lists to become out-of-date. Take note of any letter that is returned to you. This should be used with caution because it can be costly; you don't want to overwhelm your stakeholders with information, so make the most of it.

E-mail Messages: These might be a great way to spread the news about your company. Create a "signature line" at the end of each of your e-mail messages using your e-mail software. If you use most e-mail software packages, this signature line will be added to your e-mail automatically.

Magazines: Advertisements in magazines can be rather costly. Check to see whether there is a magazine dedicated to your sector. If there is one, the magazine might be quite beneficial because it already focuses on your target demographic and potential clients. Consider placing an ad in the magazine or writing a brief article for it. Introduce yourself to a reporter by contacting them. Reporters are constantly on the lookout for new stories and sources from which to gather quotations.

Newsletters: These can be an effective way to communicate the nature of your organization's promotion and services. Consider hiring a professional to help you with the original design and layout. With today's desktop publishing technologies, you may create really fascinating newsletters for a very low cost.

Newspapers (major): The local, main newspaper is read by almost everyone (s). Place ads in the newspaper, write a letter to the editor, or work with a reporter to get an article about your company written. It is possible to spend a lot of money on advertising. Newspapers are frequently helpful in providing suggestions on what to market and how to advertise. Know when to advertise — this is determined by your clients' purchasing behaviour.

Newspapers (Neighbourhood): These are typically overlooked in favour of big publications, despite the fact that they are often closer to the interests of the organization's stakeholders. On-line Discussion Groups and Chat Groups: Just like e-mail, participation in on-line discussion groups and chat groups can help you get more exposure for yourself and your business. It's worth noting, though, that many organisations have strict regulations barring outright advertising. When you first join a group, always check with the administrator to see what is appropriate.

Posters and Bulletin Boards: Posters can be quite effective if they are put where your clients will see them. Consider how often you've observed posters and bulletin boards on your own. Your best bet is to hang the posters on bulletin boards and other places where your clients go, and to replace them with new, vivid posters that will appear new to passers-by on a regular basis. Note that some businesses and municipalities have restrictions on the number of poster sizes that can be displayed in their areas.

Radio Announcements: Radio advertisements are typically less expensive than television advertisements, and many people still listen to the radio, for example, while driving. Ads are frequently offered in packages that take into account the quantity of ads, the length of the ads, and when they are broadcast. When it comes to radio commercials, one of the most important things to keep in mind is that they should be broadcast at times when your potential customers are listening to the radio.

Telemarketing: It is becoming increasingly popular. Many consumers disregard television advertisements because they believe they are prohibitively expensive. They cost more than the majority of major kinds of advertising. Businesses may find good prices for placing commercials or other forms of advertising as the number of television networks and stations grows. Television advertising are normally paid similarly to radio ads, based on the quantity of ads, the length of the ads, and when they are broadcast.

Web pages: If you had read a list of advertising tactics even two years ago, you would not have seen this method of advertising on it. Advertising and promotions on the internet are now practically ubiquitous. Businesses frequently create Web pages in order to seem current. Using the Internet for advertising requires specific equipment and knowledge, such as obtaining a computer, obtaining an Internet service provider, purchasing (usually renting) a Web site name, designing, and installing Web site graphics and other functions as needed (for example, an online store for e-commerce), promoting the Web site (via various search engines, directories, and other means), and maintaining the Web site.

Yellow Pages: If your ads are well-placed in the directory's service categories, and the name of your firm is descriptive of your services, and your ad stands out, the Yellow Pages may be a very effective advertising medium (for example, is bolded, in a large box on the page, etc.). The phone company will provide you with free assistance on how to place your advertisement in the Yellow Pages. They normally provide customised bundles that include a business phone line as well as a set amount of advertisements.

Q9) What is In-Store promotion? Explain with examples. Trace the growth of In-Store Promotion in Today’s retail environment.

Ans) Sales promotion in a retailer's location, with bundled deals, professional advice, product demos, product samples, special discounts, and so on, is known as in-store promotion. In-store promotion is another name for it. "The store serves as more than just a distribution hub. It is a marketing medium that provides for several communication or messaging contact points."

In-store promotion is becoming more common in the marketing mix. It is a promotional activity that takes place within a retail establishment. One of the most essential promotional tactics used by merchants around the world is in-store promotion. It refers to communication methods that are intended to serve as a direct enticement, added value, or incentive for customers to purchase a product. In-store marketing enhances the shopping experience by creating a dynamic ambiance.

In-store promotions can be used to educate, persuade, and remind customers about the company and its marketing strategy. Samples, coupons, sweepstakes, contests, in-store displays, trade exhibits, price-off deals, premiums, and refunds are all examples of in-store promotions.

Some of the most common examples of in-store promotion:

  1. Flash sales.

  2. Buy one, get...

  3. Coupons or discounts.

  4. Giveaways or free samples.

  5. Recurring sales.

  6. Tripwires.

  7. Limited time offer.

Growth of In-Store Promotion in Today’s Retail Environment

In-store promotion has exploded in popularity in recent years. This huge increase in in-store promotion can be attributed to a number of factors.

1)      For starters, consumers have acknowledged sales promotions as a factor in their purchasing decisions. It encourages people who are hesitant to make decisions to do so by raising the value of a certain brand.

2)     Second, businesses' increasing focus on short-term results has aided in the expansion of in-store promotions, which can deliver an immediate boost in sales. In the short term, product managers see sales promotions as a method to differentiate their brand from those of competitors.

3)     Third, the advent of computer technology has allowed manufacturers to receive immediate feedback on the success of promotions. Coupon redemption rates and sales volume information can be received in a matter of days.

4)     Finally, as merchants' scale and power have grown, so has their use of sales promotions.

In the past, the manufacturer had the upper hand in the distribution channel. National advertising was used by mass marketers to reach out directly to customers, resulting in a demand for the widely marketed brands that businesses couldn't afford to ignore. Retailers have gained the authority to seek incentives from manufacturers to carry their items as a result of consolidation and the expansion of huge retail chains. Many sales promotions are created with the intention of benefiting retailers.

"Valentine's Day" is one of the most hyped and now contentious in-store promotions, with various firms attempting to woo the youth, particularly fake and gold jewellery producers, with attractive deals. For Valentine's Day promotion, several huge retail chains hold contests and even live concerts. Mother's Day, Father's Day, Raksha Bandhan, Diwali, and Christmas are among the most popular in-store promotions.

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