Sales Promotions

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Sales Promotions

  1. 1. Sales Promotions I MKT4114
  2. 2. What we’re going to talk about <ul><li>A quick recap of Sales Promotions </li></ul><ul><li>What do they do? </li></ul><ul><li>What types are there? </li></ul><ul><li>What types are good for which objectives? </li></ul><ul><li>How to develop creative promotions... </li></ul>
  3. 3. Sales Promotions... What were they? <ul><li>They add value </li></ul><ul><li>“Pull” and “Push” Promotions... </li></ul><ul><li>Three categories: - Consumer - Retailer - Trade </li></ul>
  4. 4. Retail Promotions: <ul><li>Increase store traffic </li></ul><ul><li>Even out fluctuating sales </li></ul><ul><li>Increase purchase frequency/quantity </li></ul><ul><li>Increase loyalty </li></ul><ul><li>Increase specific brand sales </li></ul><ul><li>Special offer </li></ul><ul><li>Loyalty Card </li></ul><ul><li>BOGOF </li></ul><ul><li>Linked purchase </li></ul>
  5. 5. Trade Promotions: <ul><li>New product launch </li></ul><ul><li>Counter competition </li></ul><ul><li>Increase stock levels </li></ul><ul><li>Even out fluctuating sales </li></ul><ul><li>Increase shelf space </li></ul><ul><li>Allowances & discounts </li></ul><ul><li>Free merchandise </li></ul><ul><li>Contests </li></ul>
  6. 6. Consumer Promotions <ul><li>Encourage trial </li></ul><ul><li>Counter competition </li></ul><ul><li>Trade up/bigger products </li></ul><ul><li>Expand usage </li></ul><ul><li>Load up existing users </li></ul><ul><li>Attract new customers </li></ul><ul><li>Even out existing sales </li></ul><ul><li>Disseminate information </li></ul>
  7. 7. Main Types: <ul><li>Four main areas: </li></ul><ul><li>Money-based </li></ul><ul><li>Product-based </li></ul><ul><li>Gift-based </li></ul><ul><li>Store-based </li></ul>
  8. 8. Consumer Promotions <ul><li>4 main types: </li></ul><ul><li>Money based </li></ul><ul><li>Product based </li></ul><ul><li>Gift/Prize based </li></ul><ul><li>Store based </li></ul>
  9. 9. Money based: <ul><li>Reduced Price (on pack/shelf) </li></ul><ul><li>Rebates/Cash back (mail in) </li></ul><ul><li>Coupons </li></ul>
  10. 10. Product based: <ul><li>Extra Product: xx% extra free BOGOF </li></ul><ul><li>Samples </li></ul>
  11. 11. Gift/Prize based: <ul><li>Self liquidating offer </li></ul><ul><li>Free mail in </li></ul><ul><li>Contest/Sweepstake </li></ul><ul><li>Free with/in/on product </li></ul><ul><li>Loyalty schemes </li></ul>
  12. 12. Store based <ul><li>Special offer for one store (chain of stores) </li></ul><ul><li>Sampling </li></ul><ul><li>POP Displays </li></ul><ul><li>Store discount vouchers (in-store dist.) </li></ul><ul><li>Ambient ads </li></ul><ul><li>& Field marketing :-) ! </li></ul>
  13. 13. “Promotion mechanics” Cummi, 2002s Promotion Type Immediate Delayed Value Free in Pack Reusable Container Instant Win Home sampling Free on-pack Free Mail-in Competition Free draw Self-liquidator Charity promotion Price Pence-off Flash BOGOF Extra-fill packs Instore coupons Finance offer Next purchase coupon Cash refund Cash share-out Buy-back offer
  14. 14. Typical Objectives <ul><li>Increase volume </li></ul><ul><li>Increase trial </li></ul><ul><li>Increase repeat purchase </li></ul><ul><li>Increase loyalty </li></ul>
  15. 15. ... and more: <ul><li>Widening usage </li></ul><ul><li>Create interest </li></ul><ul><li>Deflect attention from price </li></ul><ul><li>Gaining intermediary support </li></ul><ul><li>Discriminate amongst users </li></ul>
  16. 16. Try it for yourself... <ul><li>Match the objective to the best promotional mechanic: </li></ul><ul><li>Evaluate on a scale from 9 = Very good ... 5 = OK ... 1 = Not really suitable 0 = Out of the question </li></ul>
  17. 17. Get some creativity into your promotions <ul><li>Meet Reggy from Manchester: </li></ul><ul><li>Hello, my name is Reggie and I’m your feathered friend - you can take me home with you if you wish For £2.50 you can send one of my feathered friends to one of your feathered friends. </li></ul>
  18. 18. What’s up with Reggy? <ul><li>What do you want from a hotel? </li></ul><ul><li>How can you communicate this? </li></ul><ul><li>Who is the best promoter of a hotel? </li></ul><ul><li>What do you want that person to do ? </li></ul>
  19. 19. The who and what... <ul><li>Stop C1s, A and Bs and get a bit more creative </li></ul><ul><li>Think about relationships and relationship to your brand: Lager (for example): Existing drinkers of your brand Lager drinkers (different brand) Ale drinkers Wine drinkers People who vary what they drink Home drinkers Pub drinkers </li></ul>
  20. 20. Maybe they are also: <ul><li>Amateur pop singers </li></ul><ul><li>Fashion followers </li></ul><ul><li>Tennis players </li></ul><ul><li>Golfers </li></ul><ul><li>Classical music devotees </li></ul><ul><li>... </li></ul>
  21. 21. ... And what should they do? <ul><li>Existing drinkers of your brand: recommend your brand </li></ul><ul><li>Lager drinkers (different brand): switch brand </li></ul><ul><li>Ale drinkers: switch to lager, your brand </li></ul><ul><li>Wine drinkers: try lager when it’s hot </li></ul><ul><li>People who vary what they drink: be consistent, your brand </li></ul><ul><li>Home drinkers: go to the pub </li></ul><ul><li>Pub drinkers: take lager home </li></ul>
  22. 22. So now we can picture them... <ul><li>We want tennis players who are not consistent in their drink to drink our lager once a week in their tennis club </li></ul><ul><li>We want wine drinkers who are also classical music devotees to try a nice’n cool lager when it is hot </li></ul><ul><li>We want amateur pop singers who drink in the pub to take a crate of our brand home </li></ul>
  23. 23. Five techniques... <ul><li>Listing </li></ul><ul><li>Mind maps </li></ul><ul><li>Brainstorming </li></ul><ul><li>The Village </li></ul><ul><li>I am somebody else </li></ul>
  24. 24. Practice... Makes perfect After Eight Free Levi’s Jean to be won Yorkie Bar Win a racehorse Jellytots Free Mother’s Day lunch to be won Dairy Box Win a holiday in LA Toffee Crisp Visit to Legoland Drifter Win a mountain bike Lion bar Win a day out in a tank

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