Download pdf - Impact of Sales Promotion on Brand evaluation in Children

7/29/2019 Impact of Sales Promotion on Brand evaluation in Children

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Promotional Strategy

Impact of Sales Promotion on Brand

Evaluation in Children

Group 6


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Problem Definition and Methodology

LiteratureReview

SecondaryResearch on

different salespromotions

QualitativeResearch

Quantitativeresearch

MotivationIncreasingly targeting children in order to acquire them at an early age in order to achieve

sustained loyalties for long

The effectiveness of such promotional activities is difficult to accurately measure

ObjectivePrimary purpose of sales promotions is to induce the consumers to make a quick buying-decision

in order to create increase in sales

To get a clearer picture of the impact that consumer sales activities carried out by different

companies have on brand evaluation of children

Methodology


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Types of sales promotion used to market food

products

Direct price discounts such as 50% off

Coupons issues by the manufacturers or supermarkets

Discounts via supermarket loyalty cards, Refunds

Price discounts

Free with-purchase (buy-one-get-one-free)

Reduced price on purchase (buy 1 and get 1 at reduced price)

Multi-purchase (3 for price of 2), Bonus size packages

Extra-product pricepromotions

Free with purchase gift

Reduced price with purchase gifts

Premium

promotions

Collecting vouchers/food labels/beverage container tops inreturn for gift

Collectorpromotions

Sweepstakes, Instant wins

Lotteries, free draws, competitionsPrize promotions

Front of store display, Advertising at point-of-sale

End of aisle display, In store banners, in store flyers;

Shelf-talker (graphic attention seeker), packages get attention

Feature and displaypromotions

Taste samples provided in a retail store

Free samples attached to another productSamplingpromotions


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Akers Brand Equity model


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Marketing aimed at children-Turning children into consumers

Stages of evolution of a child consumer

Accompanying Parents and Observing(atop a shopping cart)

Accompanying Parents and Requesting

Accompanying Parents and Selecting with Permission.

Accompanying Parents and Making Independent Purchases

Going to the Store Alone and Making Independent Purchases

According to Direct Marketing magazine, by 8 years children make most oftheir own buying decisions

Modern urban children can often recognize brands and status items by theage of 3 or 4, before they can even read

Children represent

three different

markets

Direct spenders

Influencers

Future market-Loyality


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Child Brand relations-Insights based on research (literature review)

Brands are inanimate objects associated with human characteristics (Aaker 1997) and

can be animated, humanized, or somehow personalized (Fournier 1998), there is a

potential for children to develop relationships (i.e., attachment) with brands

As children get older, their motivation to develop relationships with brands to develop

self-concept goes through three stages: owning the brand (level 1: early childhood),

knowing the brand (level 2: middle and late childhood), and connecting oneself with

the brand to seek popularity and acceptance (level 3: early adolescence).

To under the relation between children and brand, Children as potential relationship

partner (CPRP) framework is used and as per the framework it depends on 3 factors

Motivation (M), Opportunity (O), and Ability (A).

The Tree structure shows the

effects of sales promotion on

the product


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Authenticity, points of differentiation, freshness and multi-channel brand messagingillicit a strong and favourable response. The demographic has to be engaged with

fun, fantasy and a bit of humour to keep the brand fresh and alive. (Study sponsored

by Millward Brown, 2003)

Child Brand relations-Insights based on research (literature review)

Brand recognition commences at an early age with older age groups having greater

brand awareness (Ross et.al. 2004) The earlier the marketer establishes brand

awareness and recognition in the child, the stronger the brand association and

imagery are likely to be when they become independent as consumers (Ross et.al.

2004)

For a child the world is still extremely complex, therefore they tend to follow the

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)


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Key influences on children

Child as

reliantconsumer

Child develops

as consumer

Child becomes

independent

consumer

Child as

unsophisticated

consumer

Parents

Advertisemnets

Peers role models

family

Expressing

individuality

Sophisiticated

consumers

Awareness andrecognition

stage

physiological

safety

esteem

Belongingness and

love

Self actualisation

Early awareness=

strong brand

associations and

image


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Examples of sales promotions aimed at children and

teenagers

Kelloggs Star Wars

Coincided with the release of final Starwars movie- Revenge of the Sith

Free Light sabers

Chance to win a Light Saber signed by the actor Chrisopher Lee

One of 500 runners-up prizes of a Hasbro electric Light Saber

Cadbury's Creme Eggs Treasure Hunt Creme Eggs are to be found roaming the internet on sites including MTV,

Yahoo and Youtube.

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

Mc Donalds Happy Meals

Happy Meals contribute 10% of Mc Donalds sales

Appealing to the kid's emotional connection to the toy and making theparent feel good about going to McDonalds through other offerings


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Examples of sales promotions aimed at children and

teenagers

Lays Tazo

1997 when Star wars trilogy was released in special edition

Tazo contained a score value

Game was played to win tazos from others

Key Success factor: Marketed as a collectable

Uncle Chipps Amazzo in 1998

Discount offers: 33% extra

Kids are the decision makers in chips category.

Brands in this category communicate to kids exactly what they are looking for.

Pricing is between Rs. 5 to 20 and therefore fits the pocket of kids

Motivation for Selection


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Examples of Bournvita and Horlicks sales promotions

Bournvita

1970 Borunvita quiz contest, radio programme, Bournvita book ofknowledge free

1990-91 A series of four games on packaging

Bournvita Confidence Academy, July 2007 on Pogo

Horlicks

Horlicks Wiz kids contest 2012 South Asias largest inter school fiesta, over

10,000 schools

Exam Campaign' which gives away a useful and attractive exam board with every400g pack of Horlicks.

Other freebies offered were sketch pens, boxing gloves etc.

Kids are the key influencers to parents who are decision makers in this category.

Brands in this category target kids by giving premiums and organizing events.

The price range varies from Rs. 85 to 350.

Motivation for Selection


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Qualitative Research

I want to buy the same toy my

friends has

I always drink Bournvita

I like free toys

I buy what my friends buy

I buy the biggest pack on rackDemographic

Average age: 10 years

Tier II city

Psychology

Additional benefit

attracts

Influenced by peers


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Do you use the product category?

STOP Who makes the purchase decision?

Which brand do you prefer buying?(among the two)

Which of the following

would you buy?

No Yes

Either of the

two brands Indifferent

What would you think of afriend who bought?

Preferred brand without

promotion

Less preferred brand with

price/volume discount

Less preferred brand with a

free gift

Brand 1 with price/volume

discount

Brand 2 with a free gift

Flow of Questionnaire


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Flow of Questionnaire-Cntd.

Flow of Questionnaire contd.Preferred brand without

promotion

Less preferred brand with

price/volume discount

Less preferred brand with a

free gift

What would you think

of a friend who bought?

Less preferred brand withprice/volume discount

Less preferred brand with afree gift

Ask reasons for choosing and

if they thought a brand with

such scheme was betterRecord the answers provided by the children to

these questions (qualitative answers ) and recordthem as

Favorable (5)

Unfavorable (1)


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Sample Questionnaire

Sample Survey Do you use malt beverages? - Yes

Do you decide which brand to purchase or your parents? I ask my parents and they buy

Which is your favorite brand? -Complan

Which would you prefer buying among Bournvita and Horlicks? -Either of the two

What would you think of a friend who bought Bournvita with a price discount?

He spends his parents money wisely

Is that a good thing to do? - Good? I dont know. Smart thing yes!

Do you think Bournvita is a better brand because it gives discount?

I think they use cheap quality material, thats why.

What would you think of a friend who bought Horlicks with a freebie?

Depends on what the freebie is

Lets say its a cool toy a transformer!- Sounds interesting

So what would you think of the friend?

He has a good choice of products, I would say

Do you think Horlicks is a better brand because it gives freebies? Yes


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Results and Conclusions Drawn

Sample Survey contd.