01e78IMC Module 9_Sales Promotion

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IMC Module 9 Sales Promotion 1 of 19

Consumer Promotion Techniques

2 types: Price promotions & Value promotions

Find out the examples on each of these:

COUPONS A price reduction offer to a consumer.

Different ways: Instant redemption

Bounce back coupons Inserts in newspapers/ magazines

Direct mail

Cross


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PREMIUMS

Prizes, gifts, other special offers on purchase of products at full

price.

CONTESTS

Performing or participating in a contest and winning prizes.

REBATE

Cash returns offered to the consumers.


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SAMPLINGDelivery of a product (small size) to consumers for their

Use.

Ways:In-store

Direct

ResponseCross

Media


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BONUS PACKS

An extra quantity in a special package.

PRICE OFFS

A temporary reduction in the price of a

product to the consumer.

JOINT PROMOTIONS


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Sales promotion

Incentives aimed at a firms customers (end

users of the good or service/ other businesses).

Why promotions? To increase volume

To increase repeat purchase & loyalty

To widen usage To build up momentum

To deflect attention from price


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Promotional objective

Who do I want to do what?

Example (Brand: Beer XY)

CATEGORIZATION I

Existing drinkers

Drinkers who buy other brands

People who vary in what they drink

Home drinkers

Pub/ bar drinkers


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CATEGORIZATION II

Tennis players

Golfers Amateur pop singers

Fashion followers

Music devotees


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Combining the two categories:

Tennis players & people who vary in what they

drink

Promotion objective:

We want tennis players who are not consistent in

their choice of drinks to try our Beer XY atleast once a week in their clubs after their

game.


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The incentives then could be:

A chance to play with a celebrity

A discount on tennis kit

Implementation of the promo:

(Who)- Bar steward, the Club Committee, tennis

players(What)- to suggest that a cool Beer XY is the best

after a game


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Mind mapping

Luxury wrist watch sophisticated, educated, traveler

airline tickets, holiday package.

Soft drink young, fun loving fast food, movies,

restaurants

Television ?

Cellphone ?

Laptop ?

Luxury car ?

Penthouse ?


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Suppliers

Tie ups with other companies

Item manufacturers

Printers Ad agencies, Promo agencies, PR agencies


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CAMPAIGN

Brand - Potato Chips XY

TA Children/ Teenagers 6 to 14 (Choose one sub-category if you want)

Location: Delhi

Promotion: To increase the sales volume of XY in Delhi.

Promotion Period: Dec 20 to Jan 20, 2013

No promo agency involved for the operations/management. Brand Manager to handle operations.

As a Brand Manager/ Promotions Manager, create a

Gantt chart for the promo, mentioning each activity.


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CAMPAIGN

Some cues

Any printer, items manufacturerrequired? (vendor/ supplier

management) Logistics for the campaign?

Any redemption? Inter or intra company

tie ins? Advertising required? POPs?

The expenditure areas?


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CAMPAIGN

Let us assume: Plant is at Ludhiana; HQ at Gurgaon

1 CFA (out of 35 across Diff states in India) in Delhi

5 wholesalers (1 each for N,S,W,E,C Delhi)

3 stockists for each of the abovementioned 5 areas Assume there are 10,000 outlets in Delhi

Average pack sale/day from an outlet is 6

Total pack sale/ day in Delhi = 60,000

So for 1 month = 18,00,000

The co. decides that 1 of every 6 packs should have an insert.3,00,000 inserts and 12,000 gift item (flasks) will be required.(Assuming conversion rate of 4%)

100 outlets are chosen as redemption centers (RC). Each RC tostock on an average 120 flasks for the promo.


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CAMPAIGN

Calculating the promo cost:Cost of 12,000 flasks (@ Rs 10 each)= Rs 1,20,000

+ Cost of insert, print ad, POS material production and

POP printing = Rs 5,00,000

+Cost of TVC production = Rs 25,00,000

+Print Media cost (8 insertions) = Rs 20,00,000

+TV Media cost (on air daily) = Rs 1,00,00,000

TOTAL cost for the entire promo = Rs 1,51,20,000

How to find out profit or loss?


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Trade Promotion Techniques

Dealer contests on sales performance

Dealer contests on merchandising

Dealer gifts

Dealer meetsPOS material (dispensers, racks, posters,

danglers, stickers, baskets, stands, crates,

cold storage refrigerators, etc.)

Shop boardsDealer discounts

Trade fair participation


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Public Relations

Process of engaging the TA (employees, shareholders,

customers, media, trade, government, suppliers, etc.) so

that it responds favorably to the intended communication

and forms a positive image of the brand and/or thecompany.

May be to:

Bring about a correction in the image[Cadburys, Dhara]

Project a socially responsible image [ITC]


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Public Relations

Ways:

Press releases

Corporate brochure

Annual report

Poster, flier, leaflet

Newspaper article, internet write ups

Television/ radio programs

Corporate films

Meetings (with investors, shareholders)


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Assignment

Create promotion campaigns (show theimplementation

plan through a Gantt chart) for the period Dec 25,12

to Jan 24, 13 for the following brands:

ScalaDouble Bull

iPhone 5Lifebuoy Hand SanitizerKingfisher Beer

Documents

01e78IMC Module 9_Sales Promotion