sales promotion

5/22/2018 Sales Promotion

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CONTENT

Sr no Topic

1 Introduction to sales promotion

a Advantages and disadvantages

b Difference between advertising and sales promotion

2 Reasons for rapid growth of sales promotion

3 Pull and push strategies of sales promotion

a Product life cycle and pull and push strategy

4 Technique of sales promotion

a Consumer promotion

b Objectives of consumer promotion

c Technique of consumer promotion

5 Rules of sales promotion for children by ICC international code of

sales promotion

6 Sales promotion strategies adopted by McDonald

7 Sales promotion strategies adopted by Cadburyand Nestle

8 Sales promotion strategies adopted by Britannia

9 Sales promotion strategies adopted by Camlin

10 Sales promotion strategies adopted by Frito lays

11 Suggestion

12 Conclusion

13 Annexure14 Bibliography and webliograhphy


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Executive summary

Though the Indian market has lots of potential to expand it is very hard to survive is this

kind of market. The Indian market has cut throat competition may it be in FMCG sectoror Consumer durables. Increasing growth can be achieved at the expense of competitors.

This results in companies trying to gain competitive edge through increasing

differentiation in their brands, emphasizing how they meet the needs of customer.

Todays consumers are becoming harder please. They are smarter, many more

competitors with equal or better offers approach more price conscious, more demanding,

less forgiving, and them. The challenge is not only to produce good products but also tomake people buy them. Now on such a competitive field it becomes a Herculean task for

a company to differentiate its brands and make them stand out among the diverse range.

The company tries to overcome such difficulties by introducing various marketing

strategies and advertising technique, Sales promotion is now a day widely used strategyby various companies. Various sales promotion techniques help the company to increase

its sales by offering something free with the product or by offering the product at lower

cost if purchased at a large quantity. This increase in sales is generally short term.Promotions help the company to create awareness and interest towards the product that is

followed by the desire to buy the product.

Time has changed, gone the days when child would sit back and obey the orders of

parents. As very well pointed out by the McDonalds that the kids are no longer the

passive members of the family. They take part actively in decision making for buying thesmallest of the product in household,considering the influence of the children in the day

to day buying decisions the strategy to promote gifts to children is yielding outstandingresults. Creativity and innovation is the key to this form of promotions. The more

different and attractive your give away gift appears, the more likely it is that it will be arun away success . The trend has become a craze and all leading brands are ready to

offer something different. Specialized Giveaways make excellent premiums. The

giveaways should be something genuinely useful, and it should be kept in a place wherethe prospect will refer to it when they have need for a product.. Its important you

position your give-away effectively. The taste liking and the desire of the child is

considered before making buying decision. So various companies are targeting childrenfor sales promotion. If the child is happy then the parents readily buys the product.

This report attempts to study the sales promotion strategies for children that are adoptedby the various companies in growing its sales volume


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Introduction

Sales promotion refers to many kinds of incentives and techniques directed towardsconsumers and traders with the intention to produce immediate or short-term sales

effects.

Definition:

Sales promotion includes incentive-offering and interest-creating activities which are

generally short-term marketing events other than advertising, personal selling, publicityand direct marketing.

The purpose of sales promotion is to stimulate, motivate and influence the purchase and

other desired behavioral responses of the firms customers.

More on it...

Sales promotion offers a direct inducement to act by providing extra worth over andabove what is built into the product at its normal price. These temporary inducements are

offered usually at a time and place where the buying decision is made. Not only are sales

promotions very common in the current competitive market conditions, they areincreasing at a fast apace. These promotions are direct inducements. In spite of the

directness, sales promotions are fairly complicated and a rich tool of marketing with

innumerable creative possibilities limited only by the imagination of promotion planners.

Sales promotion is often referred to by the names of extra purchase value and below-the-line selling.

Used to achieve short-term sales :

Sales promotion is a separate and distinct element in the promotion mix and is an

important and powerful tool of marketing. The aim of sales promotion is goal-oriented toachieve sales/marketing objectives which are short-term and immediate.

Becoming too common :

Today we find companies in almost all sectors offering some sort of a promotion scheme.These sectors range from automobiles to beverages, from financial services to foods,

from household durables to services, from household products to business products, from

personal care to textiles and apparel.


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Writing about sales promotion tools, Prof. Philip Kotler observesthey have 3

distinctive characteristics.

1.Communication: they gain attention and usually provide information that may

lead the customer to the product.

2.

Incentive: they incorporate some concession, inducement, or contribution thatgives value to the consumer.

3.Invitation: they include a distinct invitation to engage in the transaction now

(offer valid till or till stocks last)

Major users of sales promotions are marketers of soaps, detergents, toiletries, soft drinks,

toothpastes, tea, coffee, footwear, textiles, readymade garments, consumer durable goods,

music systems, autos, televisions, washing machines, microwave ovens, refrigerators,magazines and many other household items. In fact the list of product categories using

sales promotion is ever-increasing, no matter what the product category, it could bestaples, impulse goods, emergency goods shopping goods, speciality goods, unsought

goods, industrial products, or different types of services.

Sales promotion is now established as an important and increasingly respectable element

of the marketing communication tools. Sales promotion expenditures are increasing

dramatically, and economic recession is most likely to fuel this trend further.

Advantages of sales promotion

Sales promotions have a significant effect on the behaviour of consumers and tradespeople. Such promotions can bring in more profits for the manufacturers because they

permit price discrimination.

Price discrimination

Producers can introduce price discrimination through the use of sales promotions. Theycan charge different prices to different consumers and trade segments depending on how

sensitive each segment is to particular prices. Coupons, special sales events, clearancesales and discounts are examples to explain the phenomenon.

Often such price discrimination are offered in specific cities in the country, .

Such price discriminating sales promotions that enable consumers and traders to pay less

in certain market area or stores usually bring in more contribution than if one price is


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charged to all. Such price discrimination also held in adjusting to fluctuations in demand

and supply situation without affecting any changes in the list price.

Effect on consumer behaviour

As sales promotions are mostly announced for a short period, customers may feel a senseof urgency and stop comparing the alternatives. They are persuaded to act now rather

than later.

With every 500g pack of Bournvita, you get a free mug . Offer valid only till stocks last.

In our over communicated society and because of selective attention, it is not uncommon

to ignore many advertisements. Sales promotion deals such as discounts, debates,

coupons, premiums, etc also increased the attention getting power of advertisements andconvey the advantages and benefits of the brand, including price information. By using

promotions, marketers can reach the deal prone customers and encourage brandswitching.

Effect on trade behaviour

Short-term promotions present an opportunity and encourage dealers to forward by. This

forward buying ensures that retailers wont to go out of stocks. As dealers have more

than the normal stocks, they think it advisable to advertise in local media, arrangeddisplays and offer attractive promotion deals to consumers. These actions help in

increasing the store traffic.

Retailer promotion: Buy Cadburys products worth Rs.3000/- and get any 30chocolates worth Rs.5 each free.

Buy a box of Munch and get 1 Munch free.

Regional Differences

The South is generally characterised by greater degree of going out and people tend to

drink outside the house. The Tamilian, consumer in particular, is value oriented, rational

and looks up to film stars, while the Keralite is more international in his outlook. The

Bangalorean is as cosmopolitan as his Mumbai or Delhi counterpart."

That sort of diversity believes Coca-Cola, calls for a corresponding variety in

promotions. The place to attract is the retail zone. Coca-Cola recently launched apromotion called ' world of Coca-Cola' covering Chennai in Tamil Nadu and Bangalore

and Mysore in Karnataka. It was a value deal, aimed at the consumer disposed towards

global- style outings. The consumer pays Rs 20 along with a label of a 500 ml of PETbottle to get a card that entitles him to gifts and discounts at 29 outlets, including those of


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global chains such as TGI Friday and Baskin and Robbins this, in these cities. About

four years ago, Pepsi had a similar promotion with its Pep cards. This, however was on a

national level, while the Coca-Cola promotion is South based build retail level activitymatters more than it does in the North. The primary aim is to help the retail raise

volumes.

Disadvantages of sales promotions

While sales promotion is a powerful and effective method to produce immediate shortterm positive results, it is not a cure for a bad product or bad advertising. In fact, a

promotion is speed up the killing of a bad product.

Increased price sensitivity

Frequently promoted brands in the product category, especially on the basis of price,make consumers and traders more price sensitive not only for the promoted brands butfor other brands as well in the same product category.

Consumers wait for the promotion deals to be announced and then purchase the product.This is true even for brands where brand loyalty exists. Customers wait and time their

purchases to coincide with promotional offers on their preferred brands.

Quality image may become tarnished

If the promotions in a product category have been rare, or the product happens to be of

high involvement category, the promotions could have a negative effect about its qualityimage. Consumers may start suspecting that perhaps the product has not been selling

well, the quality of the product is true compared to the price or the product is likely to bediscontinued because it has become outdated.

Dealers forward buy and divert stocks

In case of deals for the trade, many dealers forward buy, in excess of their inventory

requirements. This is particularly happens if a product is low bulk, much in demand andthe inventory holding costs are favourably low. This is true both for wholesalers as well

as retailers. Forward buying of excessive stocks on deals or quantity discounts can lead to

diversion of some of the stocks in non-deal areas. Forward buying of excessive stocks ondeals or quantity discounts can lead to diversion of some of the stocks in non- deal areas.Wholesalers and retailers do not hesitate in selling these excess stocks in non- deal areas

on prices that are less than the list price, but keeping some reasonable margin for

themselves. This is likely to have a negative effect on price discrimination efforts of thecompany as dealers and those areas would not be buying even the normal requirements

from the company.


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Merchandising support from dealers is doubtful

One of the trade promotions tool is to offer promotional allowances to trade people tomotivate them to provide merchandising support and to pass on some benefit to

consumers. This generally is the condition attached with such promotional allowances.

In many cases, the dealers do not cooperate in providing the merchandising support nordo they pass on any benefit to consumers. The retailer might not be willing to give

support because he does not have the place, or the product does not sell much in his shop,

or may be he thinks the effort required is more than the commission/benefit derived.

Short-term orientation

Sales promotions are generally for a short duration. This gives a boost to sales for a short

period. This short-term orientation may sometimes have negative effects on long-termfuture of the organization. Promotions mostly build short-term sales volume that is not

maintained. Heavy use of sales promotion, in certain product categories, may beresponsible for causing brand quality image dilution.

The argument given in favour is that companies should develop superior products or

services which are better than competitors and consumer should be convinced throughappropriate and focused advertising about the superiority of the product and its image.

This will result in lasting brand identities reflecting brand image will keep customersloyal to the brand.


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Difference Between Advertising And Sales Promotion

Advertising Sales Promotions

By using a variety of persuasive appeals, itoffers reasons to buy a product or service.

Besides giving reasons in the form ofdifferent appeals, they offer incentive to

the consumers to buy the product or

service now.

Appeals are emotional or functional in

nature

Appeals are rational

Time-frame is long term Time frame is short term

The primary objective is to create anenduring brand image

To get sales quickly or to induce trial.

Indirect and subtle approach towards

persuading customers to buy a product orservice

Direct in approach to induce consumers to

buy a product or service immediately bytemporarily changing the existing price-

value relationship of the product or

service.

But both advertising and sales promotions go hand in hand. Both are very essential toachieve success. Both are complementary to each other.


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Reasons For Rapid Growth Of Sales Promotion

There are a number of reasons that are favorable to the growth of sales promotion:

Increasing Competition

The air of change is gaining momentum after the introduction of economic liberalisation.Due to increase in competition, companies are finding it increasingly difficult to compete

on quality. They are therefore resorting to more and innovative methods of sales

promotion.

Customers Have Become More Price Sensitive

This increased price sensitivity is a direct result of rampant inflation. Economic recession

is likely to fuel this trend further, as consumers and dealers become more sensitivetowards prices.

Sales Promotions Generally Create An Immediate Positive Impact On Sales

Advertising, personal selling and other methods of promotion produce slower sales

response compared to sales promotion. Sales promotions are mostly for short duration,for a specified period, leading to a sense of urgency in consumers to buy now. This

creates an immediate positive impact on sales. With careful planning, it would not be

difficult to measure the impact on sales volume and profit, and see the consequences of

running the promotion even on weekly or daily basis.

Products have become more standardized

In many product categories, there is a proliferation of brands; many of them are line

extensions and me-too brands. Most brands are being perceived by consumers to be moreor less similar within a given price range because of the inability of manufacturers to

develop truly differentiated products. Under these circumstances, advertising messages

are unable to strongly influence the consumers perceptions and create brand franchise.

As a result of these perceptions of similarity among brands, marketers have no way but tocompete on the basis of extra benefit offered through sales promotion. Competing

companies struggle to capture market share by using every tool likely to bring sales

success.

Consumer Acceptance

As competition intensifies and promotions proliferate, consumers have learnt to earn the

rewards of being smart shoppers. Over a period of time, they have also learnt that brands

on promotion are not necessarily of lower quality.


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Woodland has a scheme of upto 50% off on Woodland shoes and apparel.

This learning based on experience, gets transferred to other product categories as well.Consumers have learnt that promotions are being extended to many product categories

where such promotions were unheard of.

Expectations Of Price Decrease

With the entry of many different brands of consumer durable products in the same

product category, consumers anticipate that the prices of durable goods will come down.

This encourages them to postpone their purchases. To speed up the purchase in thissegment of consumers, sales promotions are an effective and attractive method.

Consumers evaluate the incentives associated with their purchase decision and are

motivated to act now, rather than wait for the anticipated decrease in price. The marketers

should ensure that the extra benefit is attractive enough to create a sense of urgency inconsumers.

Advertising Has Become More Expensive And Less Effective

All the advertising media have become quite expensive. Audio-visual medium, which is

considered as the most effective for short-duration ads, may cost in excess of Rs. 1 lakhfor a 10 second exposure during prime time. In many cases, consumers have reached a

point of boredom due to excessive advertising on TV. Some consumers even consider

advertising as an intrusion into their privacy, leading to zapping (surfing channels). Firmswith small budgets cannot compete with big companies which spend huge sums of

money on advertising. For these small budget firms, sales promotion is a more cost-

effective promotion method to produce sales results.

Trade Has Become More Powerful

Retailers and wholesalers have become powerful and find themselves in a position to

demand extra facilities from the companies. They Channel members demand moreincentives to get the desired results. Manufacturers do not seem to have any alternatives

but to concede to their demands, keeping in view the competitive market conditions.

Pepsi offers silver coins to their dealers stocking Pepsi cases during Diwali

season. And the promotions offer differs across dealers.

Emphasis On Sales Volumes

Towards achieving the long-term profit goals, manufacturers try to attain high salesvolume. Brand managers and product managers find themselves under pressure to

achieve short-term sales results for the sake of their careers. Compared to any other


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promotional method, sales promotion is a more effective method to generate short-term

sales volume.

Sales Promotions Maximize Profits

A number of economic theories conclude that a company can maximise profits by usingsales promotion. Such promotions can permit price discrimination by allowing the brand

to compete in 2 or more different market segments. Sales promotion may allow a

premium brand to compete with a lower tier brand among price sensitive consumers. Forexample, a premium band of toilet soap may be on promotion in some price sensitive

markets, while in the remaining markets it is sold at its normal price.

Introducing An Element Of Interest

There are a number of promotions which are often called interest promotions. Some ofthe more popular interest promotion techniques are samples, contests, and sweepstakes,

free premiums and mail-in premiums. These promotions create an element of interest andexcitement, and consumers enjoy these and response enthusiastically to such contests andsweepstakes, etc.

Impulse Buying Is Increasing

The number of marginal customers is increasing. Displays at the point of purchases leadto impulse buying by consumers, more so if the items on display are not expensive. There

is a popular saying in Hindi, jo dikhta hai, voh bikta hai.

This strategy is followed by soft drink majors like Pepsi and Coke on a large scale. Theypay huge sums of money to keep their products in front so that they are visible.

These are also known as display promotions

Sales Promotion Specialists Are Available

As a result of economic liberalisation, the number of management institutions hasincreased. This has lead to the availability of specialists, who are not only well paid but

can handle this specialised work more efficiently in the current market conditions, where

sales promotion has become more important.

Excess Stocks

Because of increasing number of brands, it is difficult for manufacturers and dealers to

anticipate future sales. This, at times, leads to excessive inventories, and the quickest way

to clear that, is to go for sales promotion. Footwear companies like Bata, Woodland, etcregularly offer around 50% discount on their products.


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Pull And Push Strategies

Sales promotion decisions are significantly affected by whether the company decides to

do to pull or push strategies to accomplish its objectives. Such a decision may require alittle or a lot of cooperation from resellers. The requirements to implement one strategy

might be little more than to just stock the product by the retailers. The other strategy may

demand more participation from resellers such as the ability to explain to the consumers

as to how a product works.

In case of using a pull strategy, marketing efforts are directed at the ultimate consumer

and consumer promotions such as consumer contests and sweepstakes, rebates, coupons,free samples, consumer premiums, etc are used. If this strategy is also chosen to include

advertising, there are large advertising expenditures. The objective of such promotional

efforts would be to create sufficient consumer demand to pull the product through the

channels, that is the consumers are encouraged to demand the product from retailers whoin torn place orders with wholesaler or manufacturer to meet the consumer demand.

Manufacturer

Retailer

Consumer

Wholesaler

Flow of demand

Flow of promotion: sales promotion and advertising


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PULL

This strategy may require little promotional efforts from the resellers except to stockinput the product on shelves.

A pull strategy is appropriate when

The product demand as high.

It is possible to differentiate the product on the basis of real or emotional features,

Brand consumers show high degree of involvement in the product purchase,

There is reasonably highly brand loyalty and consumers make brand choice

decision before they go to the store.

PUSH

If a firm decides to use push strategy, its efforts are directed at resellers and the

manufacturer becomes very dependent on their personal selling abilities and efforts. Thepromotional efforts are focused at pushing the product through the distribution channels;

the resellers may be required to display, demonstrate and offer discounts, to sell the

product. The communication to resellers is generally through trade circulars or the salesforce.

PUSH

Manufacturer

Wholesaler

Retailer

Consumer

Flow of promotion: trade deals advertising, personal selling.

Flow of demand


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Push strategies generally appropriate for product categories where there is low brand

loyalty and many acceptable substitutes are available in the market. It may also besuitable for relatively new products or when the brand choice is often made in response to

displays in the stores, the product purchase is unplanned or on impulse and the consumer

is familiar and has reasonably adequate knowledge about the product. Manufacturers,who cannot afford to engage in sustained mass advertising, often use push strategy andoffer effective incentives to dealers.

Retailer promotion: Buy Cadburys products worth Rs.3000/- and get any 30 chocolates

worth Rs.5 each free.

Through this offer the company is pushing its product to the retailers and now that the

retailer has enough incentive the retailer stocks more and thus it becomes essential for the

retailer to push the product to the consumers.

PULL AND PUSH

Manufacturer

Wholesaler

Retailer

Consumer

Flow of promotion mix

Flow of demand


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Pull promotions

(Manufacturer to consumer)

Push promotions

(Offered to trade)

Push promotions

(Offered by retailer)

Sampling

Coupons

Price packs

Rebates

Continuity programs

Contests

Sweepstakes

Tie-in promotion

Financing incentives

Special events

Premiums

Bonus packs

Exchange offers

Discounts

Display allowance

Advertising allowance

Free goods

Contests

Trade coupons

Quantity discounts

Price cut

Free goods

Premiums

Displays

Feature advertising

Quantity discount

Clearance sale

Product life cycle and pull or push strategies

It is quite important for brand managers to analyze and identify the stage of a particular

brand in its life cycle before deciding about using sales promotion. During the stage of

product introductions, a product requires different sales promotional tactics.

Likewise, during the product growth stage, its maturity and the decline stages, the sales

promotion tactics required are likely to be quite different. Promotional strategies are alsolikely to be affected for different non-durable and durable products. Also important in

the development of promotional strategy would be the target audience is towards whom

the

Introduction stage


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When the product is being introduced, the major objective is to increase the trial rate and

distribution of the product. For increasing trial sampling, coupons, demonstration which

are all pull promotions, can be used. To make the product available in distributionchannels, it may become necessary to use some kind of incentive scheme for the resellers

to encourage them and minimise their risk associating stalking a new product.

Manufacturers can offer display allowances to resellers to make the product highlyvisible. There could be liberal guarantees to take back the stocks, if unsold, to reassurethe trader. These are all push promotions. For most new products, it would be difficult

to be successful without pull promotions. In fact when new products are introduced,

much more emphasis is given to pull rather than push promotions.

Cadbury is introducing the new brand bytes having an introductory offer Rs5 off

which will be available through the coupons that are distributed with newspaperslike the Times of India.

Growth stage

In this stage, the dominant objectives are to expand the market for increasing the number

of new customers who would try the product for the first time and to encourage the repeatpurchase by those who have already tried the product. Another important objective is to

expand or at least maintain the distribution. For increasing trial, pull promotions are

appropriate however as the trial rate increases free samples become quite an expensiveproposition. To encourage repeat purchase by consumers, in pack or on-pack couponscan be used.

This would also help in converting those customers who have already tried the product

into regular users of the product. Another tool of sales promotion that can be used is to

offer bonus packs containing additional quantity at the same price as an incentive toencourage repeat purchase. To expand the distribution, push promotions such as different

types of discounts, free goods that increase the profitability of the trade, can be used.

Maturity stage

When the product is in maturity stage, many similar brands are available to customers.

Due to price discounts or other extra benefits, consumers often switched brands. Thisphenomenon of brand switching is more common if the product category happens to be

one of low involvement. The sales promotional strategy in this stage can focus on

attracting maximum number of brand switchers, reward and reinforce the loyalty ofregular users and use more of push promotions to build inventories with resellers. Many


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tools of sales promotion such as premiums, price discounts, extra goods, displays, dealer

contests, feature advertising become important.

Generally a combination of pull and push promotions prove more effective during

maturity stage of a product life cycle. The market share of the brand is an important

factor in gaining the support of resellers.

Decline stage

Survival of the brand often becomes more important during decline stage. Another

important objective is to maintain distribution. Sales promotions that help in generatingsales volume become quite important. Resellers, in general, are not a tall enthusiastic

about declining brands and for this reason we do not show any kind of interest inpromoting them. Because of this negative factor, manufacturers use pull promotions. In

many cases this becomes a game of endurance for marketers.


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Techniques Of Sales Promotions

Consumer market sales

promotions

Trade sales promotions Sales force sales promotions

Price discounts Off-Invoice Allowance Sales contests

Price pack deals Buying allowance Incentives

Rebates/refunds Display and advertisingallowance

Awards and prizes

Continuity programs Buy back allowance Premiums (gifts)

Coupons Bill back allowance Sales meetings

Samples Count and recount

allowance

Training

Contests and sweepstakes Slotting allowance Sales manuals etc.

Premiums and advertisingspecialties

Merchandise allowance

Free trials POP displays

Brand placement Cash rebate

Event sponsorship Free goods

Product warranties Trade coupons

Exchange offers Dealer listing

Internet promotions Dealer loaders

Low interest financing Sales contests

Free service camps SPIFFS (push money)

Incentives

Sales training programs

Trade shows


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Consumer sales promotions

Sales promotions directed at the end-user, whether by the manufacturer or the retailer, are

called consumer sales promotions. Manufacturer announced promotions to consumers arebased on pull strategy of the manufacturer and retailer announced promotions to

consumers constitute push strategy of the retailer.

Objectives of consumer market sales promotions

The following basic objectives can be pursued with sales promotions in the consumer

market.

Stimulate trial purchase

When a firm wants to attract new users sales promotions tools can reduce the consumersrisk of trying something new. A reduced price or offer of a rebate may stimulate trailpurchase.

Pantene when it was launched did a lot of sampling, to stimulate trail purchase.Their efforts have surely shown results, with Pantene being one of the top selling

brands in India today.

Stimulate repeat purchases

In-package coupons good for the next purchase, or the accumulation of points with repeat

purchases, can keep consumers loyal to a particular brand.

The most prominent frequency programs are found in the airline industry where

competitors try to retain their most lucrative costumers by enrolling them for various

perks such as frequent flyers can earn free travel, hotel stays, gifts etc.

Stimulate larger purchases

Price reductions or two-for-one sales can motivate consumers to stock up on a brand, thus

allowing firms to reduce inventory or increase cash flow.

Many soaps brands are doing sales promotions to stimulate larger purchases. When

people generally come to buy soaps, and see the offers like,

Introduce a new brand


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Because sales promotions can attract attention and motivate trial purchase, it is

commonly used for new brand introductions.

Cadbury bytes was promoted with Rs 5 off

Combat or disrupt competitors strategies

Because sales promotions often motivate consumers to buy in large quantities or try new

brands, they can be used to disrupt competitors marketing strategies. If a firm knows that

one of its competitors is launching a new brand or initiating a new advertising campaign,a well-timed sales promotions offering deep discounts or extra quantity can disrupt the

competitor strategy. Add to the original discount an in-package coupon for future

purchases, and a marketer can severely compromise competitors efforts.

Contribute to Integrated Marketing Communications

In conjunction with advertising, direct marketing, public relations and other programsbeing carried out by a firm, sales promotions can add yet another type of communication

to the mix. Sales promotions suggest an additional value, with price reductions,

premiums, or a chance to win a prize. This is an additional and different message withinthe overall communication effort.

Techniques of consumer sales promotions

Price 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.

Boost 500gm pack, Rs. 10 off on normal price, now available at Rs. 90 only.

Price discounts are communicated through POP advertising, window displays, sales

people, advertising in newspapers, magazines and TV ads.

Determining the quantum of discount depends on the consumers price perceptions and

may be difficult to decide.

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 impulsebuying. If there are three different models of a product and because of the discount


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offered the price of the higher end model is appears, not too high to the consumer as

compared to the lesser priced model, then the consumer may buy the higher end model.

The main advantage of this tool is that it has a very Strong consumer response

Such discounts offer immediate value and strong consumer response.

The Flexibility and convenience of implementation is another advantage. Price offers areextremely flexible in the sense that the producer has total control on the number of units

being promoted and the market area in which the offer will be given. If different packs of

the same brand are available, the marketer can choose the one size that is not selling well.

A discount offer may rapidly lose its advantage if competitors announce a similar offer.

In fact, competitors are very likely to retaliate leading to the danger of triggering a

promotion wall in which no one benefits except the consumer.

Such discounts are short term and are unlikely to produce any long-term gains becausethe incentive is to purchase now by creating sense of urgency. When the discount iswithdrawn the sales may fall below the level of pre-promotion period. And in the long

run the sales would return to pre-promotion period level.

Price pack deals

Price pack deals are also called value packs.

They can take any of the two forms: one is bonus pack and banded pack.

In case of a bonus pack, an additional quantity of the same product is offered free whenthe standard pack size of the product is purchased at the regular price.

Cadbury temptation offers 10% extra free. 200gms+20gms

Boost 500grm jar gives 20% more free.

A variation of this offer is when the marketer develops special packs of the product

containing more quantity but the price is proportionately low. This is a method to loadthe consumer up with the product. This technique is often used to introduce a new largesize 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 areduced price compared to the regular price.


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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.

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 workvery 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 theproduct price is reduced to a great extent because of the rebate offer.

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.

Coupons can be of 3 types:

Direct to the consumer

Media distributed

Product distributed.

The main Advantages of coupons are:

Encourage brand switching

Stimulate trial for a product

Take off the attention from price

Many companies to create more product trials has coupons in the newspapers andmagazines which avail you some rupees off on there products

Contests And Sweepstakes


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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 tend to be somewhat expensive toadminister because each entry must be judged against winning criteria.

Contests were very often used earlier where people has to write slogans, poems, storiesetc. 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 thebrand becomes secondary. The technique thus fails to build long-term affinity for the

brand.

Britannia khao world cup jao campaign has taken the market by a swing.

Under the offer you collect points available on Britannia biscuit packets and exchange100 points for a scratch card, which has various gifts and the 100 world cup tickets. The

offer was actually introduced during the last world cup and had shown phenomenal

results. Sale increased tremendously; there was an increase in the sales by 25%, claims

the company. So it is being done this year too. This year too the contest is showing goodresults.

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 anopportunity 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 forestablished brands with weak market share in specific geographic areas.


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Techniques used in sampling:

In-store sampling

Door-to-Door sampling

Newspaper sampling

On-package sampling

Mobile sampling

Trial offers

Trial offers have the same goal as samplingto induce consumer trial use of a brand- butthey are used for more expensive items.

Ex: exercise equipment, appliances, consumer electronics, etc. the expense to the firm of

course can be formidable. Segments chosen for this sales promotion technique must have

high sales potential.

Premiums and advertising specialties

Premiums

They are items offered free or at a reduced price, with, the purchase of another item.Many firms offer a related product free.

There are 2 options available for the use of premiums:

1.A free premium provides consumers with an item at no cost, the item is includedin the package of the purchase item.

2.A self-liquidating premium requires a consumer to pay most of the cost of the

item received as a premium. In this promotion offer the consumer is required tosend a specified sum of money along with a proof of purchase to claim thepremium.

Premiums have become very common today. Many companies are offering lots and lotsof premiums. The main advantage of Premiums is that they offer not only that one

product but also another product, which may influence the customer, a lot to buy the

product. Especially if the other product is worth it.


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Also new products are given free with established brands to stimulate trial of the new

brand.

Buy a Cadbury Bournvita and get a dairymilk worth rs 10 free

Advertising specialties

Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens, calendars,etc.

Advertising specialties have 3 key elements:

A message placed on a useful icon, and given to consumers with no obligation.

Pepsodent toothpaste 100gm pack get free dental insurance worth Rs.1000, this is

a very effective strategy because it is giving youre the guarantee that nothing

can happen to your teeth. The Rs.1000 insurance speaks a lot for its brand and itsproduct thrust.

Buy any Nestle chocolate and get tatoo free.

Many other kids products are influence a lot by such specialties especially liked by the

kids like tattoos, masks, tazo, cricket bats etc. hence products that have such offers sell

more than the other brand available.

Ruffles lays, get free Tazo,

Rasna, get free Prankies

Continuity/frequency Programmes

In recent years, one of the most popular sales promotion techniques among consumers

has been frequency Programmes. The main objective of such Programmes is

encouraging repeat purchases or repeated visits to particular retail shops. FrequencyProgrammes offer consumers discounts or free product rewards for repeat purchase or

patronage of the same brand or company.

Brand placement

Brand placement often referred to, as product placement is the sales promotions

technique of getting a marketers brand featured in movies and television shows. The useof a brand by actors and actresses or the mere association of the brand with a popular

film/ television show can create a positive image and have a huge impact on the sales of a

brand.


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Marketers and advertisers used to think that brand placements affected only consumers

perceptions of a brand, much like advertising. But recent brand placements have shown

that the technique can have a sales impact like a traditional sales promotions.

Brand placement has varying results; if the brand name is spoken aloud the impact can be

dramatic but less obvious placements, referred to as background placements areconsidered by some as a waste of money.

Coke in Yaadein , Pepsi in Khushi

Pass Pass in Yaadein

Event sponsorship

When a firm sponsors or co-sponsors an event such as a rock concert, a cricket match,

etc. the brand featured in an event immediately gains credibility with the event audience.The audience attending an event already has a positive attitude and affinity for the contestthey choose to attend. When this audience encounters a brand in this very favourable

reception environment, the brand benefits from the already favourable audience attitude.

Coke and Pepsi keep sponsoring many events.

Exchange offers

If a family bought a refrigerator 10 years ago and the machine is still giving reasonable

service then the family is unlikely to buy a newer and more advanced version of the

refrigerator unless they get rid of the older one by selling it to someone. No one in our

country is prepared to throw it as junk. Same thing is true for a number of products suchas televisions, microwave ovens, washing machines, cars, two-wheelers, computers, etc.

This segment of present owners is sizeable enough yet to sell new brands to those whoalready own a similar product is not easy. To attract this segment, manufacturers

regularly announce exchange offers.

Consumer durables market is the one where exchange offers are used the most. Almost

all the TVs, Refrigerators, Washing Machines, etc. have exchange offers.

Internet promotions

They are the most recent form of sales promotions. They are promotions that are done via

the Internet. It is becoming increasingly popular because of the large use of Internet. But

still it has a lot to develop.


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Rules or sales promotion as led down by ICC International code of sales promotion

ICC International code of sales promotion

ICC International code of sales promotion in its article 8 state the Sales promotionsaddressed to, or likely to influence, children and young people should be so framed as not

to take advantage of their natural credulity or lack of experience. Furthermore such

promotions should be so framed as not to harm children or young people mentally,morally or physically, nor to strain their sense of loyalty vis--vis their parents or

guardians. Sales promotions addressed to or likely to attract children:

Sales promotions addressed to or likely to attract children:

a.

should be designed and conducted in a way that will not cause physical, mental ormoral harm to children;

b.should not offer promotional products that are unsuitable for distribution to

children;

c.should not encourage children to enter into unsafe situations or strange places ortalk to strangers e.g. for the purpose of making collections or accumulating

labels, wrappers or coupons;

d.should make it clear that parental permission is required if prizes and incentivesmight cause conflict between children and their parents; examples include

animals, bicycles, outings, concerts and holidays.


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McDonald

"Kids are no longer passive members of the family."

McDonald's India, which opened its first restaurant in India in October 1996, has

virtually spearheaded the 'burger revolution' in the country. Here, how McDonalds has

endeared itself to children

The first commercial talked about the kid in two different environments - a formal school

function where he forgets his lines and a friendly McDonald's environment where thelines spontaneously come out of the kid. In another commercial how the dad and mom

plan a surprise for the kids who are sad about leaving their old place of residence. And

the surprise is in the form of a 'friendly' McDonald's outlet bang opposite their new home.

Well we all agree that kids today are no longer passive members of the family. Those

times when a child would sit back and obey every single order of his or her parents havegone by. Today, they take active part in decision-making and have become friendlier to

their parents. This is largely true of decisions across the board - from the restaurant to go

to or the car and house that the family buys.

McDonald's world over, has been a favourite eating out experience for childrens. It has

been a conscious strategy on the part of McDonald's to make children feel special at their

restaurants. What has, of course, helped us is that McDonald's is the most childrenfriendly restaurant chain in the world and in India. Today, children are an essential part of

the family decision making process - the family in taking decisions for the home and thefamily takes their likes and dislikes into account.

Several factors have gone a long way in making restaurants the favourite of kids. The

most important experience that McDonalds provide is that their outlet is friendly andcompletely hassle-free and that has endeared us to the child in each one of our

customers.

McDonalds have taken special care to see that the architecture and dcor of theirrestaurants are children friendly. There are special chairs and tables for kids in all McD

restaurants - most of McDonalds restaurants have separate play areas for children. Their

crew members are also trained to make the experience memorable for the kids. Even all

our tables, chairs, stairs have rounded edges to prevent any kind of injury to the kids.Their innovative birthday party packages have been a great hit with the kids. Their icon

Ronald McDonald is a great favourite of kids worldwide as well as in India.

What McDonalds learn Indian kids is that if you give them a friendly, warm, hassle-free

experience, they are bound to come. Combine that with nutritious, wholesome food and

the recipe for success. The McDonald's core value of QSC&V (quality, service,


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cleanliness and value) has worked successfully everywhere and has proved to be the

winning formula for McDonald's in India as well.

McDonalds goes with pull strategy in India where the have various promotions like

giving free gifts , they give toys with their product called happy meal,McDonalds has

being using everything from plastic toys resembling cartoon characters to soft toys topromote itself. The effort can be said to be grand success considering the queue of

children outside its various outlets. Mcdonalds have contest for children from time to

time, it recently had a promotion of consumer premium i.e. it gave a coupon with20percent off on next meal or a soft serve free with next purchase. McDonalds distributes

coupons at various college and school campus

Chocolates and confectioneries

Cadbury

Cadbury India began its operations as a trading concern in 1947. Cadbury in the Indian

sub continent defined the first taste of chocolate. Ever since Cadbury chocolates werelaunched in India it has been ruling the heart of Indian child. Cadbury the name every

child has in his mind when you talk about chocolates in India

In the chocolate products like dairy milk, five stars, perk, etc. Cadbury offer direct price

pack deal for example 20% extra chocolate with, in this offer children get 20% extra

chocolate at same price

It also offers a price discount and price off deals for example a family pack of chocolates

like perk, five star and dairy milk at a discounted price. Cadbury also had printed couponin local newspaper and the promotion was that the 10 Rs chocolate would cost 5 Rs on

exchange of that newspaper coupon.

Talking about contest Cadbury had various contest for children, in one of its contest in

which the children had to collect the wrappers of chocolate of Rs 10 or more and with

every 10 wrappers returned they gave various gifts, the more number of wrapper themore big was the gift they had given gifts like animal mask, sunglasses, watches and

cameras too. The other contest was that the children had to complete the line Why they

like the Cadbury chocolates

The best answer had been gifted with Cadbury gift hampers. Cadbury also gifted pens,

pocket calendars, caps, t-shirt etc as consolation prizes.

Internet promotion is one of the new innovative promotion by Cadbury; u can play

different game onwww.Cadburyindia.comwith different chocolates of Cadbury.
http://www.cadburyindia.com/http://www.cadburyindia.com/http://www.cadburyindia.com/http://www.cadburyindia.com/


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In the small value chocolates like clairs and gems Cadbury has time to time promotions,

the recent jadoo card offer by Cadbury was rocking among the children in this offer

Cadbury gave a free jadoo card with two clairs, the card had a picture of animal whichcould not be seen in first look and that why it was called jadoo card.

Gems the favorite chocolate pill between children have something to offer for children,

before when it was packed in rectangular card box it had a puzzle game printed on it, it

also offered free James bond and bugs and bunny stickers with it. Now gems r packed incylindrical plastic tin with a cricket game on its lid. Cadbury always has a promotion

going on with one or the other brand of chocolate

Nestle

Nestle the other company manufacturing chocolate brands in India .it has a product linelike Milky bar, Bar one, Munch Kit Kat etc. nestle chocolate also very famous among theIndian children especially Kit Kat the one of its kind wafer chocolate,

Nestle also conducts various sales promotions, they also offers price discount and price

off deal in which more chocolate at same price .they also have price pack offer where in

they give 10-20%exta chocolate it also altered the price pack deal by giving 1 or 1 free

pack. Nestle also arranged a competitions in schools for which the gifted with the nestle

gift hampers.

Nestle Kit Kat the favorite chocolate among the children had yoyo free with it. Yoyo isa circular object that is tied to a thread and we can spin it up and down with the thread.The yoyo fad was for long time among the children

Health drinks

Cadbury Bournvita

Cadbury tries to promote its product with both pull and push strategies. Pull strategy is

mainly in health drink product i.e. Bournvita. With Bournvita Cadbury offered variety of

gift from time to time, it had given various gifts like Bournvita sunglasses, watches, balls,


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rackets etc recently it has started giving the new toy Beyblades to children with the new

Bournvita jar and refill pack.

The best pull strategy to promote sale was through the Bournvita book off knowledge

Bournvita's advertising claim, 'Brought up Right Bournvita Bright', was supported by a

very popular TV programme, 'The Bournvita Quiz Contest'. This was an inter-schoolquiz involving participation from schools in Mumbai, Delhi, Calcutta and Chennai. It was

broadcast fro lot of audience interest and involvement, particularly among children and

other members of the family.

The Bournvita book of knowledge

Objective

To enhance the brand image of Bournvita by supporting the main advertising propositionof the brand: 'Brought up Right-Bournvita Bright', thus building an enduring consumer

group for the brand. The promotion Consumers sending in two proofs of purchase fromany size of Bournvita were offered FREE the Bournvita Book of Knowledge, acompendium of questions and answers from the Bournvita Quiz Contest

Results

Demand for the Bournvita Book of Knowledge was so great that a substantial reprint wasrequired. Market research indicated very high recall and a linkage in the public's mind

between Bournvita, the Quiz Contest, and the Book of Knowledge, ranging from 49% in

Delhi to 66% in Madras. The scheme was therefore continued in subsequent years, with

further annual compendiums of questions and answers, slight modifications being made

to these later volumes of the Bournvita Book of Knowledge in the light of experience.Over a quarter of a million books have been sent out over the years.

Bournvita's brand share increased by 3 percentage points in each of the first years of this

Promotional programme. Scores for the number of consumers buying only Bournvita andno other competitive brand solidified to 46% in Calcutta, and went as high as 68% in

Delhi.

Comment

This is a first class example of sales promotion being used successfully in a strategic role.'Strategic as opposed to 'tactical' in the sense that theprogramme ran over a lengthy

period of time, several years. It was not just a quick in-and-out tactical operation

designed to solve a particular problem or exploit a specific opportunity that had arisen inthe short term. 'Strategic' too in that the Book of


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Knowledge was integrally related to the Bournvita Quiz Contest and in turn to the

advertising

proposition: 'Brought up Right-Bournvita Bright'.

The promotional programme thus supported the central thrust of the brand's marketing

strategy. It took the fleeting words of the radio programmes and bestowed upon them aphysical, tangible, permanent dimension in the form of the Book. It continued to

communicate the brand proposition to consumers in their homes in between broadcasts of

the Quiz Contest. It linked this popular programme firmly to the purchase of Bournvitaby requiring two proofs of purchase to obtain the Book.

BOOST

Boost is a energy drink which is very much favorite of children, boost became favoriteafter they contracted Sachin Tendulkar to act in it commercial saying that boost is secret

of my energy. As the cricketer was very famous among the children everybody wanted

to be like him. A wide-ranging review of the brand and its competition nonethelessindicated that the positioning of Boost as an energy drink for children was correct. In-

depth qualitative research confirmed the strength of the advertising which had used the

theme of trains to communicate the proposition: 'Boost: the energy fuel for an active life.Taken regularly it helps to improve both physical and mental energy'. Boost came up

with giving sachin autographed miniature bat with it.

The famous boost train picture card promotion

Objective

To enhance brand equity by supporting theme advertising, and thereby increasing brand

loyalty which would automatically result in increased sales.

The promotion

One of a series of 12 coloured picture cards was packed FREE in every 5OOgm pack of

Boost (the larger of two sizes) throughout the six-month promotional period. These

picture cards illustrated famous trains from the history of railways around the world. The

cards were contained in polythene pouches, 10 cm x 6.7 cm, sealed on all sides.

Four different picture cards were made available in packs in each of the first three months


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of the promotion, and the process was repeated in the second three months to give the

consumer a further opportunity to collect all 12 cards. All 5OOgm packs were flashed on

the front with an announcement of the promotion, referring the consumer for full details

to the back of the label in the case of the 500gm jar, and to the back of the pack in the

case of the 500gm refill pack.

Each picture card had a tear-off strip on its right hand side, printed with a number

from 1 to 12. Sending in two of these strips qualified the consumer to receive, FREE, an

album with spaces in which to paste the picture cards. The album contained much addi-

tional background information on, for example, the early history of trains; the expansion

of railways round the world; the beginnings of underground railways; the advent of diesel

and electric traction; the development of commuter services; great railway men; railways

in India; unusual facts; glossary of railway terms; the future of trains, etc.

The album also contained a page with spaces for 6 further tear-off strips from the

picture cards to be pasted down. No duplicates were allowed - the strips had to carry 6

different numbers from six different cards (these numbers corresponding to the numbered

spaces allocated in the album to the picture cards themselves). The first 100 consumers to

mail in this page containing the six strips would win a prize of an expensive electric train

set.

Results

Against a target increase in sales of 12.5 per cent during the six month promotional

period, salesincreased by 16.6 per cent. Against an estimate of 22,000 applications for

the album, 61,147 were applied for. This represented almost exactly 10% of the 5OOgm

packs sold during the six months being redeemed for albums. Almost one quarter of


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households buying Boost obtained an album. 4,020 entries were received for the electric

train set. As a goodwill gesture HMM increased the number of train sets awarded from

100 to 300.

Both trade and consumer feedback on the promotion was extremely positive.

Many children, as well as parents, wrote in expressing their appreciation of the offer.

Market research conducted at the end of the promotion reported that it was regarded very

favourably by mothers, who liked its educational aspect. It was the type of promotion

they encouraged their children to participate in.

Comment

Picture cards inserted FREE in a pack is a classic collection technique when children are

the consumers but their mothers are the purchasers. By giving the picture cards an

educational character the mother is encouraged to pass them on to her child, and in turn

the child encourages the mother to make further purchases of the brand offering the

picture cards - rather than a competitive brand - in order to obtain further cards in the

series.

The number of different picture cards in the series should not be greater than it is

reasonable for a child to collect from his mother's purchases during the period of the

promotion, though allowance can be made for the swapping of duplicate cards among

school friends. An activity which can give additional word of mouth currency to the

promotion: some children seeing their friends showing off and swapping these treasured

cards return home and ask their mothers to buy Boost next time, instead of her normal

brand. They want to be in on this new collection craze too! An album in which to insert

the picture cards is a great stimulus to collection. As soon as the first card is stuck down,


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the remaining spaces look very blank indeed - they cry out to be filled! Boost was

therefore right in making the album readily available, FREE, in return for only 2 proofs

of purchase.

The high rate of participation at all levels of the promotion proved the appeal of

trains as a subject, in the various ways it was treated in both the picture cards and the

album. Best of all the train theme continued and extended the message of Boost's

advertising campaign. This new method of sales promotion was not an abandoning of all

the careful marketing effort that had been put behind the brand previously, it was simply

a new and impactive expression and execution of all that Boost had been saying about

itself since its launch.

Britannia

Biscuits are something that doesnt need an introduction as such.Almost every family in

India starts with the day with tea and biscuits in India. Selling Biscuits in such market isvery herculean task for the company. Along with the major competitor in this segment

are Parle and Britannia there is a huge unorganized competition. Britannia has a variety

of brands of biscuits which are favorite of children. The biscuits cannot be sold merely bytrading with wholesalers and retailers, it requires directly to win the heart or consumers

mainly children. This requires a lot of advertisement and promotional activities to be

carried on with the actual selling process.

The market's domination by Britannia's premium varieties is quite significant. In the last

two years, the company has also stepped up investments on products and brands to

further strengthen its hold over the market. Product innovation, involving the launch ofbrands such as Tiger in the lower-end, Chekkers, JimJam, several varieties of the Cream

Treat brand, has been made by Britannia. Advertisement initiatives dovetailing with such

events as the World Cup, or with the holiday season, have helped the company maintainits business edge.


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The role of promotions for Britannia is especially important in this highly fragmented and

competitive market. Today, the company prides itself on communication that is

innovative, yet constantly able to strike a chord in the consumers' hearts and minds.Britannia's promotions have virtually redefined consumer expectations from this

category.

Britannia uses both pull and push strategies

There most successful pull strategy to promote sales was the Britannia khao, World cupjao and the lagaan cricket match .To reach out to the Indian consumer, Britannia has

successfully leveraged India's two prime passions - cricket and movies. Britannia

addressed these platforms in a manner true to its unique innovative style. It capitalized onevery Indian childrens dream to watch a cricket World Cup match and created the

'Britannia Khao, World Cup Jao' contest in 1999. It based itself on instant gratification.

All the consumer needed to do was buy packs of Britannia biscuits, scratch a lucky card

and win an all-expenses paid trip to England to watch a World Cup match. This

promotion was so successful that it set a trend that has got every company scrambling fortickets to take their consumers for the World Cup.

This promotion was repeated successfully in 2002/03 with the destination of choice being

South Africa. Taking the success further was the promotion of 'Britannia Khao, Cricketer

Ban Jao' that was fuelled by the need of every Indian to be a part of the passion calledcricket.

Britannia followed it up with another unique promotion, a vehicle that dealt with Indianchildren other passion - movies. A promotion called 'Britannia Lagaan Match' that

revolved around a movie called Lagaan was based on a cricket match. This promotion

gave the children a chance to interact with the film stars and also get to play cricket withthem. The match had over 40,000 spectators and made the headlines of leadingnewspapers and news channels.

Britannia promotions have proved to the marketing world that promotions per se need not

be only tactical but could also be strategic - used as a tool to further brand equity.

Britannia had an offer of collecting wrapper of biscuits and returning it back for gift also

uses its tiger, as mascot to promote the recent promotion with the tiger biscuits is that

children get free tiger scale, label and stickers. Britannia cream treat another brand from

Britannia biscuits also is on of the favorite among the children,. The company recently

offered a white marble free with every pack of Britannia Treat. The marble has acaricature of an Indian Cricketer printed on it, an innovative conversion of craze for

cricket & cricketing stars exploited with a fresh perspective. Though marbles are playedat every nook and corner of India, they were never seen as an exciting and happening

game. The inclusion of the cricket factor has added an adrenaline push to this game. The

inclusion of cricket factor is sure to boost the popularity of this game. Besides, theinclusion of cricketing personalities has also made them a collectors item among young

children. A excellent example of what a fresh perspective could do to a small product like


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marble never seen as something very special among children. Britannia gave free cartoon

sticker with the 200gm pack and now they are giving a free card toys with it.

Britannia also uses a lot off push strategy to promote sales. They provide a discount and

display allowance to the retailer and wholesaler so as to attract children to buy their

product. They arrange a window display competition to attract retailers to buy more fromBritannia

Camlin

Camlin-art material and writing instruments. Virtually every artist and schoolgoer in

India knows Camlin's products well. Its art materials and geometry sets may be most

prominent, but they are a small part of a 200-product portfolio that caters to a widemarket that ranges from housewives to executives.

These products are sold through a nationwide distribution network that has 350distributors and 30,000 retail outlets. They can introduce a new product in every corner of

the country in 15 days.

The current earnings per share of the company, which had sales of Rs 131 crore in 1997-

98, is close to Rs 10, almost doubling during the course of the year. The company expectswriting instruments and engineering and technical instruments to be major growth areas,

with rising education and literacy.

Camlin's promotional activity has tended to focus on developing the brand awareness

early they promote drawing and painting as that plays a major role in a child'sdevelopment. Every year they organize a national level drawing competition for

children." There were 2.5 million participants in the 2004 competition. This year, afterseveral years, Camlin has increased its advertising budget, which was quite insignificant

so far. Camlin faces competition from the unorganized sector, but they brushes it aside

saying it was always there, it will always be there, but will never pose a threat.


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Camlin promotes with both pull and push strategy but it focus more on pull strategy.

Every child knows the name of Camlin product before he learn to write. Camlin provides

a full compass box with the purchase of pencil box i.e. it give eraser and sharpener freewith pencil box. They also give free paintbrush with the pastel colours. Along with the

national level painting competition it sponsors various school competition

Cartoon Network, Frito-Lay launches Cubi-Tazo promotion

Potato chips or wafers are one of the most popular snack items consumed in almost allthe parts of India.

Cartoon Network and Frito-Lay has entered into promotional licensing deal, where kidscan collect exclusive Cubi-Tazos featuring Scooby-Doo, with purchase of either a

Cheetos or an Uncle Chipps pack.

Today almost every Childs favorite snack is lays and Cheetos. The main reason for this is

the passion for cartoons in the children. Almost every child love to watch cartoon and

collect games stickers and every thing what has a cartoon picture on it. Frito lays has readthe mind of Indian child and very tactfully arranged its sale promotion by giving freegifts with its chips. Frito Lay along with half-a-dozen other brands are exploring the

possibility of launching promotions centered on Beyblades. It started with the fun strip

with stories of cartoon on it then the stickers of cartoon favorites and the most likedpromotion of tazos. Every 9th child out of 10 had collection of tazos. Tazos promotion by

Frito lays lasted for more than a year.

With over 24 different Scooby-Doo designs, kids can start their very own collection.

Children can use their imagination and fashion the Cubi-Tazos into various shapes and

designs by simply connecting them. TV commercials, posters and leaflets will supportthis

Pokemon fever

Then came the Pokemon fever in India .They are strange creatures with amazing magical

powers. They have weird names like Pikachu, Weedle and Zubat, and they exercise theirpowers on children between the ages of six and 14.

They can be seen on the back of everything from cards to interactive toys to books,DVDs, movies and a range of other products.

That's right. Pokemon fever which has already swept the globe, generating worldwide

liking And it isn't only toyshops. Grocery shops and kiosks are selling products like

Cheetos and other confectionaries giving Pokemon tazos stickers and Pokemon cards that

are making them the hottest munch in town.


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But Pokemon isn't the only cartoon power brand which has caught the fancy of the

marketing gurus of modern India. There are numerous other licensing companies which

are capitalizing on the demands of a new generation of pester power kids.

After Pokemon cards, it is now time for Beyblades. And like Pokemon cards, which

became a rage after the cartoon characters, Beyblades are the next big thing to hit youngminds. Collecting them is a hobby with children these days.

Almost all the companies are now trying to use cartoon character to sell their products.Frito lays is one such company, which is using this cartoon characters for sales

promotion. They started with giving free fun strips with its chips which had various

funny stories written on it. Then it was the tazo fever that was injected by Frito lays in thechildren, almost every child had his own collections of tazos, which are like a asset to

them. And now its the Pokemon card and Beyblades the recent cartoon character that is

making the children cry for the Frito lays products.

Suggestions

A sales promotion should not exploit the loyalty, credulity, vulnerability or lack ofexperience of children:

They should not be made to feel inferior or unpopular for not buying a particular

product;

They should not be made to feel that they are lacking in courage, duty or loyalty if

they do not buy or do not encourage others to buy the product.

They should not be asked to disclose personal information about themselves ortheir families without having first obtained permission from their parents or

guardians.

Promotions should not undermine the authority, responsibility or judgment of

parents and guardians. Promotions should not include any appeal to children topersuade their parents or other adults to buy advertised products for them.

A product that is part of a series should be clearly indicated as such and should

include the method of acquiring the series.

Innovation should be there in the promotion strategy to survive in the competitivemarket but the new concepts should be well informative to children


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CONCLUSION

In today's time with the recession in the market continuing, the companies see promotion

as being immensely helpful in sustaining them in this tough period. Given the intensecompetition that characterizes today's markets as well as media clutter, no brand can

afford to ignore promos. In fact, 30 percent of TV advertising is accounted for by the

consumer promotion advertisements. Hence, the verdict is clear, the Indian customer

wants more tangible benefits for his money rather than just hot air. So in order to gain

competitive advantage over their rivals, companies are better advised to develop suitablepromotions for their customers rather than just relying on advertising.What is required

today while designing promotions is a Strategic focus. The promotion must be focusedproperly with the other elements of the marketing mix. If designed and implemented

properly promotions would become yet another weapon in the Brand manager's armory

for Brand building.

From the Companys point of view this is not a quick fix solution. Another point that

must be understood is that we cannot see Sales promotions in complete isolation.

Promotions alone cannot be used for Brand building for any reasonable length of time.Towards the end one should understand the ways in which the promotions affect the

facets of the brand. The companies should lay down the objectives, which it wants toachieve from the promotion. Once the objectives are in place they can design thepromotion strategy. One more important aspect that comes out about promotions is that

most of the promotions lack innovation. This seems to be the single most important

reason for the success behind any promotion strategy. Companies must come out withnew strategies for promotions and dare to be innovative.

Annexure

Beyblades the free gift with Bournvita 500gms pack

Free toys gifted at McDonald [with happy meal]

Pokemon card free with Frito lays [Cheetos]


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READERS PAGE

FRITOLAY INDIA takes kids for a ride!

I would like to bring your attention towards an edible item Masala Ballsmanufactured by Frito-Lay India and sold with the brand nameCheetosMRP

RS.10/-had the following inscription on the backside of its cover.

GET A SURPRISE GIFT

Collect 3 of these coupons and send them to us at Chester Cheetos, PostBox No. 27, DLF, Qutub Enclave, Ph-1, Guragon-122 002.

Well send you an exciting Pokemon fun gift.


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Bibliography

Books referred

1. Marketing management - Philip Kotler and Kevin Keller

2. Principle of marketingKotler and Armstrong

Webliography

www.google.com

www.thehindubusinessline.com

www.indiainfoline.com

www.mcdonaldindia.com

www.estrategicmarketing.com

www.cadburyindia.com
http://www.google.com/http://www.google.com/http://www.thehindubusinessline.com/http://www.thehindubusinessline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.mcdonaldindia.com/http://www.mcdonaldindia.com/http://www.estrategicmarketing.com/http://www.estrategicmarketing.com/http://www.cadburyindia.com/http://www.cadburyindia.com/http://www.cadburyindia.com/http://www.estrategicmarketing.com/http://www.mcdonaldindia.com/http://www.indiainfoline.com/http://www.thehindubusinessline.com/http://www.google.com/

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