Retail marketing

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Retail marketing

  1. 1. 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 Annexure 14 Bibliography and webliograhphy Executive summary
  2. 2. 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 sector or 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. Today’s 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 to make 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 strategy by 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 the smallest 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 outstanding results. “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 a run 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 where the prospect will refer to it when they have need for a product.. It’s 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 children for
  3. 3. 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 adopted by the various companies in growing its sales volume Introduction Sales promotion refers to many kinds of incentives and techniques directed towards consumers 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, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm’s customers.” More on it... Sales promotion offers a direct inducement to act by providing extra worth over and above 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 are increasing 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’.
  4. 4. 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 to achieve 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. Writing about sales promotion tools, Prof. Philip Kotler observes – “they 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 that gives 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 be staples, impulse goods, emergency goods shopping goods, speciality goods, unsought goods, industrial products, or different types of services.
  5. 5. 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 trades people. 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. They can charge different prices to different consumers and trade segments depending on how sensitive each segment is to particular prices. Coupons, special sales events, clearance sales 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 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 sense of 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
  6. 6. as discounts, debates, coupons, premiums, etc also increased the attention getting power of advertisements and convey the advantages and benefits of the brand, including price information. By using promotions, marketers can reach the deal prone customers and encourage brand switching. • Effect on trade behaviour Short-term promotions present an opportunity and encourage dealers to forward by. This forward buying ensures that retailers won’t to go out of stocks. As dealers have more than the normal stocks, they think it advisable to advertise in local media, arranged displays and offer attractive promotion deals to consumers. These actions help in increasing the store traffic. • Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30 chocolates 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 a promotion 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 PET bottle to get a card that entitles him to gifts and discounts at 29 outlets, including those of 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 activity matters more than it does in the North. The primary aim is to help the retail raise volumes. Disadvantages of sales promotions
  7. 7. While sales promotion is a powerful and effective method to produce immediate short term 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 but for 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 quality image. 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 be discontinued 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 and the 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 on deals 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 the company as dealers and those areas would not be buying even the normal requirements from the company.
  8. 8. • Merchandising support from dealers is doubtful One of the trade promotions tool is to offer promotional allowances to trade people to motivate 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 nor do 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-term future of the organization. Promotions mostly build short-term sales volume that is not maintained. Heavy use of sales promotion, in certain product categories, may be responsible 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 through appropriate and focused advertising about the superiority of the product and its image. This will result in lasting brand identities reflecting brand image will keep customers loyal to the brand.
  9. 9. Difference Between Advertising And Sales Promotion Advertising Sales Promotions By using a variety of persuasive appeals, it offers reasons to buy a product or service. Besides giving reasons in the form of different 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 an enduring brand image To get sales quickly or to induce trial. Indirect and subtle approach towards persuading customers to buy a product or service Direct in approach to induce consumers to buy a product or service immediately by temporarily 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 to achieve success. Both are complementary to each other.
  10. 10. 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 sensitive towards 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 more or less similar within a given price range because of the inability of manufacturers to develop truly differentiated products. Under
  11. 11. 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 to compete 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. 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 this segment 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 in consumers. • 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 lakh for 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). Firms
  12. 12. with 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 more incentives 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 sales volume. 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 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 using sales 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. For example, 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 of the more popular interest promotion techniques are samples, contests, and sweepstakes, free premiums and mail-in premiums.
  13. 13. These promotions create an element of interest and excitement, and consumers enjoy these and response enthusiastically to such contests and sweepstakes, etc. • Impulse Buying Is Increasing The number of marginal customers is increasing. Displays at the point of purchases lead to 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. They pay 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 has increased. 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, etc regularly offer around 50% discount on their products. 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
  14. 14. decision may require a little 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 who in 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
  15. 15. PULL This strategy may require little promotional efforts from the resellers except to stock input 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. The promotional 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 sales force. PUSH Manufacturer Wholesaler Retailer Consumer
  16. 16. Flow of promotion: trade deals advertising, personal selling. Flow of demand 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 be suitable 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 and offer effective incentives to dealers. Retailer promotion: Buy Cadbury’s 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
  17. 17. Flow of demand 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 Discounts Display allowance Advertising allowance Free goods Contests Trade coupons Quantity discounts Price cut Free goods Premiums Displays Feature advertising Quantity discount Clearance sale
  18. 18. Premiums Bonus packs Exchange offers 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 also likely 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 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 distribution channels, 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
  19. 19. highly visible. There could be liberal guarantees to take back the stocks, if unsold, to reassure the 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 newspapers like 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 repeat purchase 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 expensive proposition. To encourage repeat purchase by consumers, in pack or on- pack coupons can 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 to encourage 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. This phenomenon 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 of regular users and use
  20. 20. more of push promotions to build inventories with resellers. Many 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 generating sales 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 in promoting them. Because of this negative factor, manufacturers use pull promotions. In many cases this becomes a game of endurance for marketers.
  21. 21. 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 advertising allowance 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 advertising specialties 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
  22. 22. Trade shows 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 are based 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 consumer’s risk of trying something new. A reduced price or offer of a rebate may stimulate trail purchase. • 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
  23. 23. 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 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 competitor’s efforts. • Contribute to Integrated Marketing Communications In conjunction with advertising, direct marketing, public relations and other programs being 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 within the overall communication effort.
  24. 24. 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 consumer’s 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 impulse buying. If there are three different models of a product and because of the discount 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 are extremely 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.
  25. 25. Such discounts are short term and are unlikely to produce any long-term gains because the incentive is to purchase now by creating sense of urgency. When the discount is withdrawn 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 when the 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 “load” the consumer up with the product. This technique is often used to introduce a new large size 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 a reduced price compared to the regular price. 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
  26. 26. 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 work very 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 the product 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 and magazines which avail you some rupees off on there products • Contests And Sweepstakes Contests and sweepstakes can draw attention to a brand like no other sales promotions technique.
  27. 27. 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 to administer because each entry must be judged against winning criteria. Contests were very often used earlier where people has to write slogans, poems, stories etc. 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 consumer’s primary focus, while the brand 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 exchange 100 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 good results. • 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
  28. 28. provide a consumer with an opportunity 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 for established brands with weak market share in specific geographic areas. 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 sampling – to induce consumer trial use of a brand- but they 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:
  29. 29. 1.A free premium provides consumers with an item at no cost, the item is included in 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 to send a specified sum of money along with a proof of purchase to claim the premium. Premiums have become very common today. Many companies are offering lots and lots of 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. 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 you’re the guarantee that nothing can happen to your teeth. The Rs.1000 insurance speaks a lot for its brand and its product 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
  30. 30. • 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. Frequency Programmes 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 marketer’s brand featured in movies and television shows. The use of 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. 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 are considered 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 contest – they choose to attend. When this audience encounters a brand in this very favourable reception
  31. 31. 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 such as 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 who already 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. 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 promotions addressed to, or likely to influence, children and young people
  32. 32. 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-à-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 or moral 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 or talk 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 incentives might cause conflict between children and their parents; examples include animals, bicycles, outings, concerts and holidays. McDonald "Kids are no longer passive members of the family."
  33. 33. McDonald's India, which opened its first restaurant in India in October 1996, has virtually spearheaded the 'burger revolution' in the country. Here, how McDonald’s 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 the lines 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 have gone 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 children friendly 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 the family 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 McDonald’s provide is that their outlet is friendly and completely 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 décor of their restaurants 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.
  34. 34. 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, 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 to promote 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 with 20percent 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 were launched 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 coupon in 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
  35. 35. 10 or more and with every 10 wrappers returned they gave various gifts, the more number of wrapper the more 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 on www.Cadburyindia.com with different chocolates of Cadbury. In the small value chocolates like éclairs 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 éclairs, the card had a picture of animal which could 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 in cylindrical 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 line like Milky bar, Bar one, Munch Kit Kat etc. nestle chocolate also very famous among the Indian 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
  36. 36. 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 is a 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, 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-school quiz 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 proposition of the brand: 'Brought up Right-Bournvita Bright', thus building an enduring consumer group for the brand. The promotion
  37. 37. Consumers sending in two proofs of purchase from any size of Bournvita were offered FREE the Bournvita Book of Knowledge, a compendium of questions and answers from the Bournvita Quiz Contest Results Demand for the Bournvita Book of Knowledge was so great that a substantial reprint was required. 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 and no 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 the programme 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 in the short term. 'Strategic' too in that the Book of 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
  38. 38. strategy. It took the fleeting words of the radio programmes and bestowed upon them a physical, 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 Bournvita by requiring two proofs of purchase to obtain the Book. BOOST Boost is a energy drink which is very much favorite of children, boost became favorite after 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 nonetheless indicated 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
  39. 39. 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 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.
  40. 40. 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, sales increased 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 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.
  41. 41. 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
  42. 42. 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, 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.
  43. 43. Britannia Biscuits are something that doesn’t 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 is very 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 by trading 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 of brands 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 maintain its business edge. 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 cup jao” 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 on every Indian
  44. 44. children’s 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 for tickets 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 called cricket. Britannia followed it up with another unique promotion, a vehicle that dealt with Indian children 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 with them. The match had over 40,000 spectators and made the headlines of leading newspapers 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 a caricature of an Indian Cricketer printed on it, an innovative conversion of craze for cricket & cricketing stars exploited with a fresh perspective. Though marbles are played at 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, the inclusion of cricketing personalities has also made them a collector’s item among young children. A excellent example of what a fresh perspective could do to a small product like marble never seen as something very special among children. Britannia
  45. 45. 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 from Britannia 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 wide market that ranges from housewives to executives. These products are sold through a nationwide distribution network that has 350 distributors 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 expects writing 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
  46. 46. role in a child's development. Every year they organize a national level drawing competition for children." There were 2.5 million participants in the 2004 competition. This year, after several 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. 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 free with 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 all the parts of India. Cartoon Network and Frito-Lay has entered into promotional licensing deal, where kids can 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 read the mind of Indian child and very tactfully arranged its sale promotion by giving free gifts 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 liked promotion 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 support this
  47. 47. 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 their powers 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. 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 young minds. 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 the children, almost every child had his own collections of tazos, which are like a asset to them. And now it’s the Pokemon card and Beyblades the recent cartoon character that is making the children cry for the Frito lays products.
  48. 48. Suggestions A sales promotion should not exploit the loyalty, credulity, vulnerability or lack of experience 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 or their 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 to persuade 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 competitive market but the new concepts should be well informative to children 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 intense competition 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
  49. 49. 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 suitable promotions for their customers rather than just relying on advertising.What is required today while designing promotions is a Strategic focus. The promotion must be focused properly 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 Company’s 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 to achieve from the promotion. Once the objectives are in place they can design the promotion 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 with new 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] Bibliography
  50. 50. Books referred 1. Marketing management - Philip Kotler and Kevin Keller 2. Principle of marketing –Kotler and Armstrong Webliography • www.google.com • www.thehindubusinessline.com • www.indiainfoline.com • www.mcdonaldindia.com • www.estrategicmarketing.com • www.cadburyindia.com

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