Sales promotion

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This presentation discusses both forms of sales promotion strategies-customer oriented and trade oriented. The difference between advertising and sales promotion is descibed in details. Different …

This presentation discusses both forms of sales promotion strategies-customer oriented and trade oriented. The difference between advertising and sales promotion is descibed in details. Different types of consumer oriented strategies like sampling,coupon, contests, refunds,premiums,sweepstakes,loyalty programs,event management are discussed. Various trade oriented sales promotion startegies like contests and Dealer Incentives, trade allowances, Point of Purchase Displays,Training Programs, Trade Shows, Cooperative Advertising are discussed.

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  • 1. Sales Promotion
    Sponsorships and Promotion Deals with Major Sports
    First Sponsorship Deal with IllieNastase in 1972
    First Track and Field Endorser Steve Prefontaine
  • 2. Nike Endorsers All
  • 3. and Mike
    Since 1984
  • 4. Air Jordan
    Simply called Jordans
    First released in 1985
    New Designs Annually
    Many styles, colour schemes
  • 5. Air Jordan I
    Air Jordan I…Released 1985
    Considered breakthrough in basketball shoe design and colourways
    Banned by NBA, MJ fined $ 5,000
    1994: Retroed in 2 different colorways
    2011: Most reproduced…90 colorways
  • 6. Air Jordan II
    Released in 1986
  • 7. Air Jordan X
    10 th Anniversary of Air Jordan
    1993: First retirement from NBA
    Accompishments inscribed on sole
    “Comeback sneaker”
    Different colour in different cities
    Retro’d in 2005
    Air Jordan 10(X) to be released in 2012
  • 8. Air Jordan XXII
    Released in 2007
    Inspired by the R 22 Raptor Fighter Jet
  • 9. Air Jordan XXII
  • 10. Air Jordan XXII Special Editions
    First Special Ed: Feb 17 –MJ’s Birthday….Authentic Jordan brand basketball leather
    Second Special Ed: Omega Model
    : commemorates 6 th NBA Championship
  • 11. Air Jordan 2011
    Endorsed by Dwyane Wade
    Interchangeable Insoles
    Red for Power
    Blue for Quickness
  • 12. Air Jordan….Large Secondary Market
    eBay
    Sneaker Conventions
    Consignment Stores
  • 13.
  • 14.
  • 15. Sole Control, Philadelphia
    Air Jordan Retro Flint $275
    Air Jordan Retro 13 Playoff $250
  • 16. Jordans……Many Classes
    OG
    Retro
    Retro+
    PE
    Samples
  • 17. Sales Promotion
    Direct Inducement
    Extra Value/Incentive
    Primary Objective: Creating an immediate sale
  • 18. eCoupons from Pizza Hut
  • 19. Price Reduction….from P & G
    Price Reduced by Rs. 18
    Price Reduced by Rs. 20
  • 20. Price Reduction…..HUL reacts
    Price Reduced by 22%
  • 21. Superstar Photo Contest
  • 22. Sweepstakes from
    Log in at www.lufthansa.com and buy ticket
    Fill up sweepstakes form
    Winner: Two tickets to any European destination
  • 23. Money back Refund
    MC Gold,Titanium and Platinum Cardholders :30% Moneyback Offer
    MC Standard Cardholders: 15% Moneyback
    Jet, Kingfisher and IA
  • 24. Money Back Refund
  • 25. Something Extra
  • 26. Free Sampling
  • 27. Premiums
    Toys, Collectibles,Souvenirs, Household Products
    Linked to a Product
    Often requires Proof of Purchase
    Sometimes, shipping charges borne by customer
  • 28. The First Premium
    1910: Prize for customer purchasing 2 packages of cereals
    2.5 Million Books in 23 years
  • 29. The Difference in Appeal
    Advertising
    To the Mind and Emotions
    Give consumers a reason to buy
    Sales Promotion
    More to the wallet
    Incentive to purchase a brand
  • 30. Trade Incentives
    Marketing Intermediaries
    Financial Incentive
    Trade Contest
  • 31. An Acceleration Tool
    Speed Up Sales Processes
    Maximize Sales Volume
    Limited-Time Offers
  • 32. An Ideal Sales Promotion Program
    Gets customers who have not responded
    Rarely ideal
  • 33. Types of Sales Promotion Activities
  • 34. Consumer-Oriented Promotions
  • 35. Trade Oriented Promotions
  • 36. Difference in Strategy
    Consumer Oriented Promotions
    Promotional Pull Strategy
    Encourage Consumers to purchase a brand
    Create Demand
    Stores patronage
    Trade-Oriented Promotions
    Motivate Intermediaries to carry a product
    Extra Effort
  • 37. Objective of Consumer Oriented Program
    Trial and Repurchase
  • 38. Objective of Consumer Oriented program
    Increasing Consumption of an established brand
    New uses
    New users
  • 39. The Pepsi Challenge
  • 40. The Starbucks Via Challenge
  • 41. Objective of Consumer Oriented Promotions
    • Defending Current Customers
    • 42. Targeting a Specific Market Segment
    • 43. Enhancing IMC and Build Brand Equity
  • Sampling
    Consumers given limited quantity
    No charge
    Induce Trial
  • 44. Criteria for an Effective Sampling Program
    Products of low unit value
    Divisible
    Purchase Cycle Relatively Short
  • 45. Benefits and Limitations of Sampling
    Risk Free way to try
    Direct Experience with the brand
    Must have unique benefit
    Sometimes benefits difficult to gauge immediately
  • 46. Sampling Methods….Door to Door
    Expensive
    Can be cost effective
    Along with Newspapers
    Newspaper Polybags
  • 47. Sampling Methods…Through Mail
    Small lightweight nonperishable products
    Control of Distribution
    Specific Market Areas
    Postal restrictions, increasing rates
  • 48. In-Store Sampling
    Increasingly popular
    Esp Food Products
    Often with coupon
    Can be expensive
  • 49. On-package Sampling
    Sample attached to another product
    Very cost effective for multiproduct firm
    Limited audience
    Multiple carrier brands
  • 50. Event Sampling
    Total sense of the brand
    In stores, concerts,sporting events and other places
  • 51. The World’s Premier Whisky Tasting Show
    16 Countries around the globe
    Whisky MasterClass
    Whisky Live Stage
    Whisky Bottling
  • 52. WhiskyLive Snippets
  • 53. Couponing
    Ticket or Document
    Exchanged for financial discount or rebate
    Customarily issued my manufacturers of consumer goods
    Also by Retailers
  • 54. Coupons
  • 55. Advantages of Coupons
    Offer price reduction to price sensitive customers
    No reliance on retailer
    Reduces perceived risk
  • 56. Limitations of Coupons
    • Difficult to estimate
    • 57. Low Redemption Rates
    • 58. High Costs
  • Coupons…Modes of Distribution
    Newspapers(RR<1%)
    Direct Mail(RR=3%)
    Magazines(RR<1%)
    Packages(RR:4-20%)
  • 59. Bounce-Back Coupon
    • Redeemable for next purchase of same brand
    • 60. Inducement to repurchase
  • Cross-Ruff Coupons
    Redeemable on purchase of different product
    Usually by same co
    RR: 4-7%
  • 61. Instant Coupons
    Instant Coupon Terminals in Shanghai
  • 62. In-Store Couponing
  • 63. Coupon Machines
  • 64. Benefits of Coupon Machines
    Ready-to-buy customers
    Increase brand awareness
    Generate Impulse Buying
    Encourage Product Trial
  • 65. Catalina Coupons
    Printed at Cash Registers
    Two varieties:
    * For specific products
    * ONYO
  • 66. Premiums
    Offer of a Pdt/ Service free or low price
    Extra Incentive
  • 67. Free Premiums
    Small gifts in product package
    Sent to customers who mail request with POP
    High Impulse value
    Extra Incentive
  • 68. Limitations of Premiums
    High Cost Factor
    Risk of Poor Premium
    Restrictions from regulatory agencies
  • 69. Happy Meals
    MacDonald’s: World’s largest Toymaker
    Movie Tie-in Deals
  • 70.
    • History of the Happy Meal
    • 71. Born in 1979
    • 72. Circus-wagon themed
    • 73. Cheeseburger or Hamburger Option, French Fries,Cookies,soft drink
    • 74. Toy
  • Variety of Toys
    “McDoodler” Stencils
    “McWrist” Wallets
    ID bracelets
    Puzzle Locks
    Toys
    McDonaldland character eraser
  • 75. Disney Happy Meals
  • 76. Ty’s Teenie Beanie Babies
    Introduced in 1997
    Wildly popular
    100 Million in 1997
  • 77. David Bracken
    10,000 McDonalds collectibles
    4,500 Happy Meal Toys
  • 78. Self-Liquidating Premium
    • Customer pays some/all costs
    • 79. Create Interest in brand
    • 80. Enhances Image
  • Contests and Sweepstakes
    Glamour
    “Pot of Gold at end of Rainbow”
    Instant Millionaire
    Interest and attention among large audience
  • 81. Difference between contests and sweepstakes
    Contests
    Compete for prize or money
    Basis of Skills or Ability
    Judging, Criteria
    Purchase Incentive: POP or Store Visit
    Sweepstakes
    Purely on Chance
    No POP
  • 82. Contests from
  • 83. Rules of the Game
    Register Once
    Unique Contest User ID and P/w
    Need WindowsLive/MS Passport ID
    New User: Bonus Credits
    Credit Points: Everytime you play
  • 84. Building Up the Excitement
    Monthly Leaderboards
  • 85. Sweepstakes
    Easier to enter
    Easier and Less Expensive to Adminster
    Costs are predictable
    Insurable
    Advantage of Fixed Costs
  • 86. Very popular Annual sweepstakes
    Special Bonus
    Entry: Free and by invitation
    Every entry equal chance
    Winner Randomly selected
    Independently Audited
    Rs. 1 Cr of prize money
  • 87. Refunds/Rebates
    Part of Purchase Price
    POP
    Customers usually very responsive
  • 88. Auto Mfgrs offers rebates in India
    July 2011: Car sales slows
    Limited Period Rs. 1.7 Lakh Rebate on the Honda Jazz
    Rebates of upto Rs. 50,000
  • 89. Bonus Packs
    Extra Amounts
    Regular Price
    Larger Containers
    Extra Units
  • 90. Bonus Packs
  • 91. Price-Off Deals
    • Right on package
    • 92. Specially marked price packs
    • 93. From manufacturers margins
  • Price-Off Deals
  • 94. Loyalty Programs
    • Also called Frequency or Continuity Programs
    • 95. Travel
    • 96. Hospitality
    • 97. Retailers
  • 3150 properties in USA and 68 countries
    Singapore Marriott
    Detroit Marriott
  • 98. Marriott Rewards Program
    Hotels:
    Earn for every stay
    Earn upto 10 points or 2 Air Miles for every US $ spent
  • 99. Marriott Rewards Program
    Airlines
    30 Airlines Loyalty Programs
  • 100. Marriott Rewards Program
    Shopping
    10 points Per $ purchased
    SkyMall: Home & Living, health and wellness, apparel, electronics
    ShopMyWayMall
    FTD.com: Flowers and Gifts
  • 101. Marriott Rewards Program
    500 Points with every car rental
    Upto 20,000 points
  • 102. Marriott Rewards Program
    Marriott Rewards® Refer a Friend
    Rewarding Events
  • 103. Event Marketing
    Linking a company/brand
    Event
    Themed Activity
    Creating Experience
    Promoting a Product or Service
  • 104. The 747-8 Rollout
  • 105. Agency EA
    Obj: Unveil the 747-8
    Key Stakeholders
    Highlight Innovative Features
    Positioning
  • 106. Agency EA…The Solution
    Powerful and inspiring reveal
    All aspects:
    Event concept and logistics
    video production
    Graphics
    on site staffing
    vendor management
    Entertainment
  • 107. The Reveal
    More than 10,000 Employees,Industry VIPs, and the Press watched in awe
    International Buzz….MSNBC, The Today Show, USA Today, WSJ,Chicago Tribune
  • 108. Event Sponsorship