Impact of Sales Promotion on Brand evaluation in Children

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<ul><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 1/16</p><p>Promotional Strategy</p><p>Impact of Sales Promotion on Brand</p><p>Evaluation in Children</p><p>Group 6</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 2/16</p><p>Problem Definition and Methodology</p><p>LiteratureReview</p><p>SecondaryResearch on</p><p>different salespromotions</p><p>QualitativeResearch</p><p>Quantitativeresearch</p><p>MotivationIncreasingly targeting children in order to acquire them at an early age in order to achieve</p><p>sustained loyalties for long</p><p> The effectiveness of such promotional activities is difficult to accurately measure</p><p>ObjectivePrimary purpose of sales promotions is to induce the consumers to make a quick buying-decision</p><p>in order to create increase in sales</p><p>To get a clearer picture of the impact that consumer sales activities carried out by different</p><p>companies have on brand evaluation of children</p><p>Methodology</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 3/16</p><p>Types of sales promotion used to market food</p><p>products</p><p> Direct price discounts such as 50% off</p><p> Coupons issues by the manufacturers or supermarkets</p><p> Discounts via supermarket loyalty cards, Refunds</p><p>Price discounts</p><p>Free with-purchase (buy-one-get-one-free)</p><p>Reduced price on purchase (buy 1 and get 1 at reduced price)</p><p>Multi-purchase (3 for price of 2), Bonus size packages</p><p>Extra-product pricepromotions</p><p>Free with purchase gift</p><p>Reduced price with purchase gifts</p><p>Premium</p><p>promotions</p><p>Collecting vouchers/food labels/beverage container tops inreturn for gift</p><p>Collectorpromotions</p><p>Sweepstakes, Instant wins</p><p>Lotteries, free draws, competitionsPrize promotions</p><p>Front of store display, Advertising at point-of-sale</p><p>End of aisle display, In store banners, in store flyers;</p><p>Shelf-talker (graphic attention seeker), packages get attention</p><p>Feature and displaypromotions</p><p>Taste samples provided in a retail store</p><p>Free samples attached to another productSamplingpromotions</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 4/16</p><p>Akers Brand Equity model</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 5/16</p><p>Marketing aimed at children-Turning children into consumers</p><p>Stages of evolution of a child consumer</p><p> Accompanying Parents and Observing(atop a shopping cart)</p><p> Accompanying Parents and Requesting</p><p> Accompanying Parents and Selecting with Permission.</p><p> Accompanying Parents and Making Independent Purchases</p><p> Going to the Store Alone and Making Independent Purchases</p><p>According to Direct Marketing magazine, by 8 years children make most oftheir own buying decisions</p><p>Modern urban children can often recognize brands and status items by theage of 3 or 4, before they can even read</p><p>Children represent</p><p>three different</p><p>markets</p><p>Direct spenders</p><p>Influencers</p><p>Future market-Loyality</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 6/16</p><p>Child Brand relations-Insights based on research (literature review)</p><p> Brands are inanimate objects associated with human characteristics (Aaker 1997) and</p><p>can be animated, humanized, or somehow personalized (Fournier 1998), there is a</p><p>potential for children to develop relationships (i.e., attachment) with brands</p><p> As children get older, their motivation to develop relationships with brands to develop</p><p>self-concept goes through three stages: owning the brand (level 1: early childhood),</p><p>knowing the brand (level 2: middle and late childhood), and connecting oneself with</p><p>the brand to seek popularity and acceptance (level 3: early adolescence).</p><p> To under the relation between children and brand, Children as potential relationship</p><p>partner (CPRP) framework is used and as per the framework it depends on 3 factors</p><p>Motivation (M), Opportunity (O), and Ability (A).</p><p>The Tree structure shows the</p><p>effects of sales promotion on</p><p>the product</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 7/16</p><p>Authenticity, points of differentiation, freshness and multi-channel brand messagingillicit a strong and favourable response. The demographic has to be engaged with</p><p>fun, fantasy and a bit of humour to keep the brand fresh and alive. (Study sponsored</p><p>by Millward Brown, 2003)</p><p>Child Brand relations-Insights based on research (literature review)</p><p> Brand recognition commences at an early age with older age groups having greater</p><p>brand awareness (Ross et.al. 2004) The earlier the marketer establishes brand</p><p>awareness and recognition in the child, the stronger the brand association and</p><p>imagery are likely to be when they become independent as consumers (Ross et.al.</p><p>2004)</p><p> For a child the world is still extremely complex, therefore they tend to follow the</p><p>bandwagon, believing majoritys choice is the best choice for them. This changesduring adolescence where they try to find their own identity. (Dammler et.al. 2002)</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 8/16</p><p>Key influences on children</p><p>Child as</p><p>reliantconsumer</p><p>Child develops</p><p>as consumer</p><p>Child becomes</p><p>independent</p><p>consumer</p><p>Child as</p><p>unsophisticated</p><p>consumer</p><p>Parents</p><p>Advertisemnets</p><p>Peers role models</p><p>family</p><p>Expressing</p><p>individuality</p><p>Sophisiticated</p><p>consumers</p><p>Awareness andrecognition</p><p>stage</p><p>physiological</p><p>safety</p><p>esteem</p><p>Belongingness and</p><p>love</p><p>Self actualisation</p><p>Early awareness=</p><p>strong brand</p><p>associations and</p><p>image</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 9/16</p><p>Examples of sales promotions aimed at children and</p><p>teenagers</p><p>Kelloggs Star Wars</p><p> Coincided with the release of final Starwars movie- Revenge of the Sith</p><p> Free Light sabers</p><p> Chance to win a Light Saber signed by the actor Chrisopher Lee</p><p> One of 500 runners-up prizes of a Hasbro electric Light Saber</p><p>Cadbury's Creme Eggs Treasure Hunt Creme Eggs are to be found roaming the internet on sites including MTV,</p><p>Yahoo and Youtube.</p><p> Consumers are challenged to locate them and enter a special code into thewebsite for a chance to win a range of prizes Creme . Egg key rings, spoons,beach balls, Red Letter Day experiences and a trip to New York</p><p>Mc Donalds Happy Meals</p><p> Happy Meals contribute 10% of Mc Donalds sales</p><p> Appealing to the kid's emotional connection to the toy and making theparent feel good about going to McDonalds through other offerings</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 10/16</p><p>Examples of sales promotions aimed at children and</p><p>teenagers</p><p>Lays Tazo</p><p> 1997 when Star wars trilogy was released in special edition</p><p> Tazo contained a score value</p><p> Game was played to win tazos from others</p><p> Key Success factor: Marketed as a collectable</p><p>Uncle Chipps Amazzo in 1998</p><p> Discount offers: 33% extra</p><p>Kids are the decision makers in chips category.</p><p> Brands in this category communicate to kids exactly what they are looking for.</p><p> Pricing is between Rs. 5 to 20 and therefore fits the pocket of kids</p><p>Motivation for Selection</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 11/16</p><p>Examples of Bournvita and Horlicks sales promotions</p><p>Bournvita</p><p> 1970 Borunvita quiz contest, radio programme, Bournvita book ofknowledge free</p><p> 1990-91 A series of four games on packaging</p><p> Bournvita Confidence Academy, July 2007 on Pogo</p><p>Horlicks</p><p>Horlicks Wiz kids contest 2012 South Asias largest inter school fiesta, over</p><p>10,000 schools</p><p>Exam Campaign' which gives away a useful and attractive exam board with every400g pack of Horlicks.</p><p>Other freebies offered were sketch pens, boxing gloves etc.</p><p> Kids are the key influencers to parents who are decision makers in this category.</p><p> Brands in this category target kids by giving premiums and organizing events.</p><p> The price range varies from Rs. 85 to 350.</p><p>Motivation for Selection</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 12/16</p><p>Qualitative Research</p><p>I want to buy the same toy my</p><p>friends has</p><p>I always drink Bournvita</p><p>I like free toys</p><p>I buy what my friends buy</p><p>I buy the biggest pack on rackDemographic</p><p>Average age: 10 years</p><p>Tier II city</p><p>Psychology</p><p>Additional benefit</p><p>attracts</p><p>Influenced by peers</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 13/16</p><p>Do you use the product category?</p><p>STOP Who makes the purchase decision?</p><p>Which brand do you prefer buying?(among the two)</p><p>Which of the following</p><p>would you buy?</p><p>No Yes</p><p>Either of the</p><p>two brands Indifferent</p><p>What would you think of afriend who bought?</p><p>Preferred brand without</p><p>promotion</p><p>Less preferred brand with</p><p>price/volume discount</p><p>Less preferred brand with a</p><p>free gift</p><p>Brand 1 with price/volume</p><p>discount</p><p>Brand 2 with a free gift</p><p>Flow of Questionnaire</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 14/16</p><p>Flow of Questionnaire-Cntd.</p><p>Flow of Questionnaire contd.Preferred brand without</p><p>promotion</p><p>Less preferred brand with</p><p>price/volume discount</p><p>Less preferred brand with a</p><p>free gift</p><p>What would you think</p><p>of a friend who bought?</p><p>Less preferred brand withprice/volume discount</p><p>Less preferred brand with afree gift</p><p>Ask reasons for choosing and</p><p>if they thought a brand with</p><p>such scheme was betterRecord the answers provided by the children to</p><p>these questions (qualitative answers ) and recordthem as</p><p>Favorable (5)</p><p>Unfavorable (1)</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 15/16</p><p>Sample Questionnaire</p><p>Sample Survey Do you use malt beverages? - Yes</p><p> Do you decide which brand to purchase or your parents? I ask my parents and they buy</p><p> Which is your favorite brand? -Complan</p><p> Which would you prefer buying among Bournvita and Horlicks? -Either of the two</p><p> What would you think of a friend who bought Bournvita with a price discount?</p><p> He spends his parents money wisely</p><p> Is that a good thing to do? - Good? I dont know. Smart thing yes! </p><p> Do you think Bournvita is a better brand because it gives discount?</p><p> I think they use cheap quality material, thats why.</p><p> What would you think of a friend who bought Horlicks with a freebie?</p><p> Depends on what the freebie is</p><p> Lets say its a cool toy a transformer!- Sounds interesting</p><p> So what would you think of the friend?</p><p> He has a good choice of products, I would say</p><p>Do you think Horlicks is a better brand because it gives freebies? Yes</p></li><li><p>7/29/2019 Impact of Sales Promotion on Brand evaluation in Children</p><p> 16/16</p><p>Results and Conclusions Drawn</p><p>Sample Survey contd.</p></li></ul>

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