On the basis of the information given in the case, answer the next five questions.

"Just Foodie" is a food chain offering different snacks like chips, biscuits, chocochip cookies, cakes, etc. through their own retail outlets. To make their products available to customers at right time, right place, they are also selling their products to grocery stores in addition to their own outlets. The taste, quality and packing are given utmost care. They are offering good quality, so they able to charge higher price than their competitors. To increase their sales, they are using different offers like: Free gifts, Cash backs, etc. They are offering discounts to customers on various occasions. All these considerations have made "Just Foodie" a complete success and they are able to win over different competitors in the market, and their market share is rising continuously.

"To increase their sales, they are using different offers like: Free gifts, Cash backs etc. They are offering discounts to customers on various occasions."

Which tool of the promotion mix is used in the given statement?

Sales promotion

The correct answer is Option (2) → Sales promotion.

The tool of the promotion mix used in the given statement is "Sales promotion." This refers to activities aimed at increasing sales in the short term, such as offering free gifts, cash backs, and discounts to customers on various occasions, as mentioned in the statement. 

* Sales promotion refers to short- term incentives, which are designed to encourage buyers to make immediate purchases of a product or service. These include all promotional efforts other than advertising, personal selling and publicity, used by a company to boost its sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution. Sales promotion is usually undertaken to supplement other promotional efforts such as advertising and personal selling. Companies use sales promotion tools specifically designed to promote to customers (e.g., free samples, discounts, and contests), tradesmen or middlemen (e.g., cooperative advertising, dealer discounts and dealer incentives and contests) and to salesperson (e.g., bonus, salesmen contests, special offers). Sales promotions include only those activities that are used to provide short-term incentives to boost the sales of a firm.