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 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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Sales promotion

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

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