module IV 2

8/6/2019 module IV 2

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ASSIGNMENT ON PROMOTIONAL STRATEGY

Submitted To: Submitted By :

Prof Leni vargees Sampada Karpate


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BHOPAL

The revolution in retailing industry has brought many changes and also opened

door for many Indian as well as foreign players. In a market like India, there is a

constant clash between challenges and opportunities but chances favour those

companies that are trying to establish themselves. Thus, to sustain in a market like

India, companies have to bring innovative solutions. Indian market has potential to

accommodate many retail players, because still a small proportion of the pie isorganized.

Retailing is still in its infancy in India. In the name of retailing, the unorganised

retailing has dominated the Indian landscape so far. According to an estimate, the

unorganized retail sector has 97% presence whereas the organized accounts for

merely 3%. Industry has already predicted a trillion dollar market in retail sector in

India by 2010. However, the retail industry in India is undergoing a major shake-

up as the country is witnessing a retail revolution. The old traditional formats are

slowly changing into more complex and bigger formats. Malls and mega malls arecoming up in almost all the places, be it metros or the smaller cities, across the

length and breadth of the country.

Sales promotion is one of the four aspects of promotional mix.

Sales promotion is defined as any of a variety of techniques designed to offer

purchasers an extra inducement to buy in the form of value or benefits beyond

those offered by the product being purchased. Sales promotions can be directed at

either the customer, sales staff, or distribution channel members (such as retailers).

Sales promotions targeted at the consumer are called consumer sales promotions.Sales promotions targeted at retailers and wholesale are called trade sales

promotions. The trend in the retail industry in term of various sales promotion

offers are:

y Price deal: A temporary reduction in the price, such as happy hour


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y Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi

Stuff and Advantage.

y Cents-off deal: Offers a brand at a lower price. Price reduction may be apercentage marked on the package.

y Price-pack deal: The packaging offers a consumer a certain percentage moreof the product for the same price (for example, 25 percent extra).

y Coupons: coupons have become a standard mechanism for sales promotions.Coupons produced by manufacturers for use by consumers are called

manufacturers coupons and they remain very much a part of the consumer

promotion landscape. In fact, so much so that in 2002 coupon distribution

rose 4.5% to an all time high of 336 billion.

y Loss leader: the price of a popular product is temporarily reduced in order tostimulate other profitable sales

y Free-standing insert (FSI): A coupon booklet is inserted into the localnewspaper for delivery.

y On-shelf couponing: Coupons are present at the shelf where the product isavailable.

y Checkout dispensers: On checkout the customer is given a coupon based onproducts purchased.

y On-line couponing: Coupons are available online. Consumers print them outand take them to the store.

y Mobile couponing: Coupons are available on a mobile phone. Consumersshow the offer on a mobile phone to a salesperson for redemption.

y Online interactive promotion game: Consumers play an interactive gameassociated with the promoted product.

y Bonus pack: Bonus packs are simply packages containing an extra amountof the product but sold at the price of a regular sized package. Bonus packs

are most typically associated with transaction building, but may serve brand

building purposes as well.

y Price off pack: Some manufacturers offer price reductions by printing thediscount right on the package. Because it is a price based promotion, it may

have a larger impact on transaction building than on brand building, though

brand loyal customers will certainly appreciate the savings.


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y Sweeper stake and contest: Sweepstakes and contests are not synonymous.Sweepstakes winners are determined strictly by random drawing while

contests require participants to perform some task or display some talent in

order to win.

There are different types of sales promotion that are offered:

In the past twenty years, all categories of sales promotions have experienced

tremendous growth as marketers offering more value to customers has

become an increasingly necessary part of overall marketing programs. In

fact, as a percentage of total marketing expenditures, sales promotions

frequently receive larger combined budget allocations than standard media

advertising, according to Promo Magazines annual survey of marketing

managers. In 1997, business-oriented sales promotion received almost half

of the total marketing budget, while consumer-oriented sales promotions and

advertising evenly split the remaining half. By 2002, the allocations shifted

back to media advertising, which received 37% of promotional dollars, with

Consumer oriented

sales promotion

Retail promtion

Consumer

promotion

Business oriented salespromotion

Trade promotion

Industrial Promotion

Business romotions


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business-oriented sales promotions and consumer-oriented promotions

receiving 27% and 30%, respectively. There are Several reasons that

accounts for the importance of sales promotion.

yThe growth of retailer power in distribution channels has led to anincrease in consumer promotions. Sometimes, manufacturers make

special offers to consumers because a powerful retailer insisted that

they do so.

y The nature of competition has changed remarkably over recent yearsresulting in ever greater consumer price sensitivity. The proliferation

of brands and brand extensions, highly segmented consumer markets,

and lower brand loyalty have combined to make consumers much

more aware of price given that many product categories are populated

by several competitors.

y Price deals have become the rule rather than the exception for manyproducts. Rebates on certain brands of automobiles, department store

sales, and coupons on many grocery items are only a few areas where

consumers have grown to expect price breaks.

y Advertising clutter has forced marketers to find new ways of gettingconsumer attention. Product benefits alone frequently prove

insufficient to prompt consumer action much less get their attention.

Thus, marketers increasingly look to sales promotion to find ways of

breaking through to customers who face a constant bombardment of

promotional messages.

y Consumer promotions growth can also be attributed to increased pressure on marketing management for short-term results. Publicly

traded companies find themselves especially prone to this orientation.

Many investors look to immediate bottom-line results rather than the

long-term health or stability of the companies in which they invest.

Responding to this pressure, marketing managers seek quick fixes forsagging bottom lines. Sales promotions are often seen as ways to

boost near term sales. However, as their use becomes more common,

their costs become regular and recurring and therefore potentially self-

defeating.


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Brand equity detoriation

Relationship Between Transaction and Brand Building

Promotions

Promotional objectives can usually be categorized into types. Promotion that looks

to build awareness is distinct from that which seeks to create interest, since the

latter seeks to identify a need in the consumer while the former simply places thebrand in their awareness with little context. Products and services that are new and

unfamiliar might require a promotional campaign that provides information,

acquainting the consumer with the facts about the product and distinguishing it

from others as a foundation for other promotional efforts. Another promotional

objective is to stimulate immediate demand, often through temporarily discounted

prices or giveaways. Finally, some promotions are designed to reinforce a brand

after the sale, reminding consumers of the product or service's experience, social

status or image.

Before a promotional objective can be set--let alone achieved--a

business must have certain facts on which their decisions should be based. A clear

target audience should be in mind for each promotional objective, with as much

specificity as possible. The target audience should be matched to a theme for the

product or service and eventually matched to a specific message. This message will

TRASACTION BUILDING

SALES PROMOTION

IMMEDIATE PURCHASE

INCE NTIVES

PRODUCT SALES

BRAND BUILDING SALES

PROMOTION

BRAND EQUITY

ENHANCEMENT


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essentially be the promotional objective. A final consideration that would be the

means by which the product or service will be distributed, as it might suggest

methods for connecting to the target audience and disseminating the promotional

message.

Hyper city

Different Sections in hyper city:

y Food: 1.Staples2. Beverages

3. Perishable

y HAMy Home carey Personal carey Foot weary Men weary Sportsy

Home needy Home linesy Home ware

Sales promotion offers:

1. Day wise promotion: They follow a strategy of doing any day promotionalactivity on one or other product. For example on Parle G products they give

certain amount of discount on biscuits on one day in a week. This time this

discount is being given on Wednesday.

2. Season wise promotion: In this they do season wise promotion and this iscontinued for a month and in the next month they change the promotion

based on the season which is going on. As in this season mangoes are

coming so this month they celebrated mango king month. On 27 of this


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month they are organizing an event or we can say the competition in which

the candidates have to eat as many mangoes they can and can win the exting

prices .With this exiting event one more exiting thing is that they are doing

this with help of 92.7 fm. 92.7 fm RJS will be coming to hyper city to

organize this event.3. Back to school: In this they are promoting the school bags, water bottles and

other school things which are needed in school as from July the schools are

going to reopen and they are promoting this on the radio mirchi so that every

one can get the knowledge of this through radio also.

4. Promotion CSR activity through NGO: In this promotional activity theyhave called the children from Arushi NGO who were handicapped and treat

them with a good breakfast and provide then with certain gifts.With this they

played holi with them only with dry colors giving message to save water.So

this was appreciable that with such promotion they are giving a social

message to save water.5. Mango eating contest: In this summer season they are now coming with the

mango eating contest as we know that mongo is king of fruits so they are

conducting a contest of eating with as many mangoes in tie up big 92.7 fm.


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6. There is a promotion going on that is if the customer buys the britaniaproduct worth Rs 40 or above then they will get a chance to win bicycle

,school bags and many more items.

7. There are many different events that is being organized in the hyper city .Forexample fancy dress competition for children, drawing competition, magic

shows, fashion show.8. They also have an hyper city discovery club in which the customer receive

points and this card acts as debit card for the customer. This card is basically

use when we purchase item from HAM i .e hi-tech appliances multimedia.

This is because by of these item the customer can add maximum point in his

or her discovery card.The description of this card is as follows:

Reward points program

1. Hypercity Discovery club members get additional discounts as DiscoveryReward Points.

2. Each Discovery Reward Point is worth re.1/-3. Exclusive offers available for Hypercity Discovery Club members, every

month, across all categories.

4. Hypercity Discovery Club members enjoy exclusive offers round the year,across all categories.

5. Discovery Reward Points will be valid for a period of 2 years.


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6. Hypercity Discovery Club Card comes with al lifetime validity.

Enrollment Fees

1. Customers can sign up at the Hyper city Discovery Club desk on

payment of Rs.200/-

2. Members get 100 Discovery Reward Points on joining the program.

3. Members get a bouquet of offers containing exclusive promotions

Redeeming Discovery Reward Points

1.Each Discovery Reward point is worth Re.1/-2.Discovery Reward points can be accumulated and exchanged at the time o

payment/billing

3.To redeem Discovery Reward Points please present your Hyper city Discovery

Club Card at the time of billing.

4.Discovery Reward Points can be redeemed only by Hypercity Discovery Club

members on presenting their card at the cash counter and signing to acknowledge

the receipt of the redemption of Discovery Reward Point.

5.Discovery Reward Points can be used to buy any merchandise within the store,

including Hypercity Gift Vouchers.

6.Discovery Reward Points should be redeemed within their validity period(2years) failing which the Hypercity Discovery Reward Points automatically will

lapse.

Add-on Card

1.Hypercity Discovery Club members can also avail an add-on card on payment

of Rs. 100/-

2

.

Hypercity allows both primary & add-on to earn Discovery Reward Points, but

redemption possible through primary card on.


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EXAMPLES of sales offer:

Hyper save on:

y Air coolersy 32 samsung LCDsy LG 42 LCDy Softy gear XLy On home action

Communication objective:

Find a lower price elsewhere and we will double the difference best priceguarantee. This is there communication objective because by this they are

attracting the customer and telling them if they get any item at such a low

price they will double the difference .If any customer challenge them about

the price of same item in any other store then they give them one form to fill

and return the difference.


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Documents

module IV 2