Sales Promotion

Sponsorships and Promotion Deals with Major Sports

First Sponsorship Deal with Illie Nastase in 1972

First Track and Field Endorser Steve Prefontaine

Nike Endorsers All

and Mike

Since 1984

Air Jordan

• • Simply called Jordans

• First released in 1985

• New Designs Annually

• Many styles, colour schemes

Air Jordan I

Air Jordan I…Released 1985

Considered breakthrough in basketball shoe design and colourways

Banned by NBA, MJ fined $ 5,000

1994: Retroed in 2 different colorways

2011: Most reproduced…90 colorways

Air Jordan II

Released in 1986

Air Jordan X

• 10 th Anniversary of Air Jordan

• 1993: First retirement from NBA

• Accompishments inscribed on sole

• “Comeback sneaker”

• Different colour in different cities

• Retro’d in 2005

• Air Jordan 10(X) to be released in 2012

Air Jordan XXII

Released in 2007

Inspired by the R 22 Raptor Fighter Jet

Air Jordan XXII

Air Jordan XXII Special Editions

• First Special Ed: Feb 17 –MJ’s Birthday….Authentic Jordan brand basketball leather

• Second Special Ed: Omega Model• : commemorates 6 th NBA

Championship

Air Jordan 2011

Endorsed by Dwyane Wade

Interchangeable Insoles

Red for Power

Blue for Quickness

Air Jordan….Large Secondary Market

eBay

Sneaker Conventions

Consignment Stores

Sole Control, Philadelphia

Air Jordan Retro 13 Playoff $250

Air Jordan Retro Flint $275

Jordans……Many Classes

• OG

• Retro

• Retro+

• PE

• Samples

Sales Promotion

• Direct Inducement

• Extra Value/Incentive

• Primary Objective: Creating an immediate sale

eCoupons from Pizza Hut

Price Reduction….from P & G

Price Reduced by Rs. 18

Price Reduced by Rs. 20

Price Reduction…..HUL reacts

Price Reduced by 22%

Superstar Photo Contest

Sweepstakes from

• Log in at www.lufthansa.com and buy ticket

• Fill up sweepstakes form

• Winner: Two tickets to any European destination

Money back Refund

• MC Gold,Titanium and Platinum Cardholders :30% Moneyback Offer

• MC Standard Cardholders: 15% Moneyback

• Jet, Kingfisher and IA

Money Back Refund

Something Extra

Free Sampling

Premiums

• Toys, Collectibles,Souvenirs, Household Products

• Linked to a Product

• Often requires Proof of Purchase

• Sometimes, shipping charges borne by customer

The First Premium

1910: Prize for customer purchasing 2 packages of cereals

2.5 Million Books in 23 years

The Difference in Appeal

Advertising

• To the Mind and Emotions

• Give consumers a reason to buy

Sales Promotion

• More to the wallet

• Incentive to purchase a brand

Trade Incentives

• Marketing Intermediaries

• Financial Incentive

• Trade Contest

An Acceleration Tool

• Speed Up Sales Processes

• Maximize Sales Volume

• Limited-Time Offers

An Ideal Sales Promotion Program

• Gets customers who have not responded

• Rarely ideal

Sales promotion

Consumer Oriented

Promotions

Trade-Oriented

Promotions

Types of Sales Promotion Activities

SamplesCouponsPremiumsContests and SweepstakesRefunds and RebatesBonus PacksPrice-OffsLoyalty ProgramsEvent Marketing

Consumer-Oriented Promotions

Trade Oriented Promotions

Contests and Dealer IncentivesTrade AllowancesPoint-of-Purchase DisplaysTraining ProgramsTrade ShowsCooperative Advertising

Difference in Strategy

Consumer Oriented Promotions

• Promotional Pull Strategy

• Encourage Consumers to purchase a brand

• Create Demand

• Stores patronage

Trade-Oriented Promotions

• Motivate Intermediaries to carry a product

• Extra Effort

Objective of Consumer Oriented Program

• Trial and Repurchase

Objective of Consumer Oriented program

• Increasing Consumption of an established brand

– New uses– New users

The Pepsi Challenge

The Starbucks Via Challenge

Objective of Consumer Oriented Promotions

•Defending Current Customers

•Targeting a Specific Market Segment

•Enhancing IMC and Build Brand Equity

Sampling

• Consumers given limited quantity

• No charge

• Induce Trial

Criteria for an Effective Sampling Program

• Products of low unit value

• Divisible

• Purchase Cycle Relatively Short

Benefits and Limitations of Sampling

• Risk Free way to try

• Direct Experience with the brand

• Must have unique benefit

• Sometimes benefits difficult to gauge immediately

Sampling Methods….Door to Door

• Expensive

• Can be cost effective

• Along with Newspapers

• Newspaper Polybags

Sampling Methods…Through Mail

• Small lightweight nonperishable products

• Control of Distribution

• Specific Market Areas

• Postal restrictions, increasing rates

In-Store Sampling

• Increasingly popular

• Esp Food Products

• Often with coupon

• Can be expensive

On-package Sampling

• Sample attached to another product

• Very cost effective for multiproduct firm

• Limited audience

• Multiple carrier brands

Event Sampling

• Total sense of the brand

• In stores, concerts,sporting events and other places

• The World’s Premier Whisky Tasting Show

• 16 Countries around the globe

• Whisky MasterClass

• Whisky Live Stage

• Whisky Bottling

WhiskyLive Snippets

Couponing

• Ticket or Document

• Exchanged for financial discount or rebate

• Customarily issued my manufacturers of consumer goods

• Also by Retailers

Coupons

Advantages of Coupons

• Offer price reduction to price sensitive customers

• No reliance on retailer

• Reduces perceived risk

Limitations of Coupons

•Difficult to estimate

•Low Redemption Rates

•High Costs

Coupons…Modes of Distribution

• Newspapers(RR<1%)

• Direct Mail(RR=3%)

• Magazines(RR<1%)

• Packages(RR:4-20%)

Bounce-Back Coupon

• Redeemable for next purchase of same brand

• Inducement to repurchase

Cross-Ruff Coupons

• Redeemable on purchase of different product

• Usually by same co

• RR: 4-7%

Instant Coupons

Instant Coupon Terminals in Shanghai

In-Store Couponing

Coupon Machines

Benefits of Coupon Machines

• Ready-to-buy customers

• Increase brand awareness

• Generate Impulse Buying

• Encourage Product Trial

Catalina Coupons

Printed at Cash Registers

Two varieties:

* For specific products

* ONYO

Premiums

• Offer of a Pdt/ Service free or low price

• Extra Incentive

Free Premiums

• Small gifts in product package

• Sent to customers who mail request with POP

• High Impulse value

• Extra Incentive

Limitations of Premiums

• High Cost Factor

• Risk of Poor Premium

• Restrictions from regulatory agencies

Happy Meals

• MacDonald’s: World’s largest Toymaker

• Movie Tie-in Deals

• History of the Happy Meal

•Born in 1979•Circus-wagon themed

• Cheeseburger or Hamburger Option, French Fries,Cookies,soft drink

•Toy

Variety of Toys

• “McDoodler” Stencils

• “McWrist” Wallets

• ID bracelets

• Puzzle Locks

• Toys

• McDonaldland character eraser

Disney Happy Meals

Ty’s Teenie Beanie Babies

• Introduced in 1997

• Wildly popular

• 100 Million in 1997

• David Bracken

• 10,000 McDonalds collectibles

• 4,500 Happy Meal Toys

Self-Liquidating Premium

•Customer pays some/all costs

•Create Interest in brand

•Enhances Image

Contests and Sweepstakes

• Glamour

• “Pot of Gold at end of Rainbow”

• Instant Millionaire

• Interest and attention among large audience

Difference between contests and sweepstakes

Contests

• Compete for prize or money

• Basis of Skills or Ability

• Judging, Criteria

• Purchase Incentive: POP or Store Visit

Sweepstakes

• Purely on Chance

• No POP

Contests from

Rules of the Game

• Register Once

• Unique Contest User ID and P/w

• Need WindowsLive/MS Passport ID

• New User: Bonus Credits

• Credit Points: Everytime you play

Building Up the Excitement

Monthly Leaderboards

Sweepstakes

• Easier to enter

• Easier and Less Expensive to Adminster

• Costs are predictable

• Insurable

• Advantage of Fixed Costs

• Very popular Annual sweepstakes

• Special Bonus

• Entry: Free and by invitation

• Every entry equal chance

• Winner Randomly selected

• Independently Audited

• Rs. 1 Cr of prize money

Refunds/Rebates

• Part of Purchase Price

• POP

• Customers usually very responsive

Auto Mfgrs offers rebates in India

• July 2011: Car sales slows

Limited Period Rs. 1.7 Lakh Rebate on the Honda Jazz

Rebates of upto Rs. 50,000

Bonus Packs

• Extra Amounts

• Regular Price

• Larger Containers

• Extra Units

Bonus Packs

Price-Off Deals

•Right on package

•Specially marked price packs

•From manufacturers margins

Price-Off Deals

Loyalty Programs

•Also called Frequency or Continuity Programs

•Travel

•Hospitality

•Retailers

3150 properties in USA and 68 countries

Detroit MarriottSingapore Marriott

Marriott Rewards Program

• Hotels:

• Earn for every stay

• Earn upto 10 points or 2 Air Miles for every US $ spent

Marriott Rewards Program

• Airlines

• 30 Airlines Loyalty Programs

Marriott Rewards Program

• Shopping

• 10 points Per $ purchased

• SkyMall: Home & Living, health and wellness, apparel, electronics

• ShopMyWayMall

• FTD.com: Flowers and Gifts

Marriott Rewards Program

500 Points with every car rental

Upto 20,000 points

Marriott Rewards Program

• Marriott Rewards® Refer a Friend

• Rewarding Events

Event Marketing

• Linking a company/brand

• Event

• Themed Activity

• Creating Experience

• Promoting a Product or Service

The 747-8 Rollout

• Agency EA

• Obj: Unveil the 747-8

• Key Stakeholders

• Highlight Innovative Features

• Positioning

Agency EA…The Solution

• Powerful and inspiring reveal

• All aspects: • Event concept and logistics• video production• Graphics• on site staffing• vendor management• Entertainment

The Reveal

• More than 10,000 Employees,Industry VIPs, and the Press watched in awe

• International Buzz….MSNBC, The Today Show, USA Today, WSJ,Chicago Tribune

Event Sponsorship