colgate sales promotion
Post on 22-Oct-2014
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Colgate Sales promotion
Submitted By: Edward A. Lasrado. (11SJCCPGD010)
Promotional offers run by colgatePrice discounts or price-off deals: Price deals are probably the most commonly used promotional techniques. A price deal for a customer means a reduction in the price of the promoted product and the consumer saves money on purchase. Example: Colgate fresh energy ice blue gel (Colgate India) 50 gm pack, Rs. 5.50 off on normal price, now available at Rs. 12.50 only. Price discounts are communicated through POP advertising, window displays, sales people, advertising in newspapers, magazines and TV ads.Such promotions work very well in gaining the attention of consumers, particularly at the point of purchase among similar brands and may also encourage unplanned or impulse buying. Price pack deals Price pack deals are also called value packs. They can take any of the two forms: 1.Bonus pack and 2.Banded pack. In case of a bonus pack, an additional quantity of the same product is offered free when the standard pack size of the product is purchased at the regular price.
The Banded pack is when the marketer develops special packs of the product containing more quantity but the price is proportionately low. This is a method to load the consumer up with the product. This technique is often used to introduce a new large size of the product or to encourage continued usage and also to increase consumption. The offer is termed as banded pack when 2 or more units of the products are sold at a reduced price compared to the regular price. Another variation of this technique is buy 1 get 1 free or some similar offer, it could be same for less or more for the same.
The main advantage of this tool is that extra product may encourage increased usage and help sustain the habit. Also among other similar brands, a bonus pack stands out at the point of sale. 2. Refunds And Rebates: Refund is the repayment of total money paid for purchase, while the rebate represents repayment of only part of the money paid for the purchase. Refund offers seems to work very well in guaranteeing the trial of a product or service since there is no risk involved for the customer because of the promise of total refund of the purchase amount. Refunds and Rebates play an important role in the consumer durable segment because the product price is reduced to a great extent because of the rebate offer. 3.Coupon: A coupon entitles a buyer to a designated reduction in price for a product or service. Coupons are the oldest and most widely used form of sales promotions. Coupons bear an expiry date and cannot be redeemed after the cut off date. The main Advantages of coupons are: 1.Encourage brand switching 2.Stimulate trial for a product 3.Take off the attention from price 4. Contests And Sweepstakes: Contests and sweepstakes can draw attention to a brand like no other sales promotions technique.A contest has consumers compete for prizes based on skill or ability. Winners in a contest are determined by a panel of judges or based on which contestant comes closest to a predetermined criterion for the contest. Contests were very often used earlier where people has to write slogans, poems, stories etc. generally I like the product because and the best ones won prizes. But off lately, contests are becoming less and sweepstakes increasing. People are more willing to play on luck rather than participate by showing their abilities. A sweepstake is a promotion in which winners are determined purely by chance. Consumers need only to enter their names in the sweepstakes as a criterion for winning. Some popular types of sweepstakes also use scratch-off cards.
Contests and sweepstakes often create excitement and generate interest for a brand, but the problems of administering these promotions are substantial. One problem is that the game itself may become the consumers primary focus, while the brand becomes secondary. The technique thus fails to build long-term affinity for the brand. 5.Sampling: Getting consumers to simply try a brand can have a powerful effect on future decision-making. Sampling is a sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a popular technique is an understatement. Sampling is particularly useful for new products, but should not be reserved for new products alone. It can be used successfully for established brands with weak market share in specific geographic areas.
Promotional strategy objectives vary among organizations. Some use promotion to expand their markets, others to hold their current positions, still others choose to present a corporate viewpoint on a public issue. Promotional strategies can also be used to reach selected markets. Most sources identify the specific promotional objectives or goals of providing information, differentiating the product, increasing sales, stabilizing sales, and accentuating the product's value. Colgates products are sold to millions of people worldwide. Their Marketing Team develops and implements marketing plans that are geared to establish and maintain current and long-range vision for the brands and to increase sales, margin and profitability for the brand
Marketers in general often develop a promotional strategy to differentiate their goods or services from those of competitors. To accomplish this, they attempt to occupy a "position" in the market that appeals to their target customers. Promotions that apply the concept of positioning communicate to consumers meaningful distinctions about the attributes, price, quality, or usage of a good or service. After successful implementation of/for market position, Colgate-Palmolive then works progressively at Integrated Marketing Communication (IMC).