This document discusses sales promotions in retail. It defines sales promotion as using short-term incentives to encourage product purchases and influence buying patterns. The document outlines different types of sales promotions and reasons they are used, such as making customers stop, shop, buy more and repeat purchases. It also lists various sales promotion tools like coupons, contests and samples. Finally, it provides examples of promotions for specific retailers like KFC, Max and Apollo Pharmacy.

1. PROMOTIONS IN RETAIL

2. SALES PROMOTION
• It is the process of persuading the
potential customer to buy the product.
• Use of short term incentives to encourage
the purchase of the product.
• Helps to shape the buying patterns,
attract new customers and increase the
sales.

3. TYPES
 Customers sales promotion
 Trade sales promotion
 Sales force promotion

4. WHY SALES PROMOTION
 Stop, Shop and Buy
 Buy Bigger
 Repeat Purchase
 Products have become more standardized
 Customers have become price sensitive
 It creates an immediate positive impact on sales
 Advertising has become more expensive and less
effective
 Trade has become more powerful
 Excessive stock

5. SALES PROMOTION TOOLS
 Coupons
 Contests
 Demos
 Samples
 Frequent Shopper Schemes
 Prizes
 Referral Gifts
 Combo Packs
 Corporate Coupons (Sodexo)

6. PROMOTIONAL MIX ELEMENTS
Advertising
Sales Promotion
Store
Atmosphere
Digital
Marketing
Personal Selling
E-Mail
Marketing
Publicity Word Of Mouth
PersonalImpersonal
Paid
Unpaid

7. KFC (ALPHA ONE MALL)
OUTSTORE PROMOTIONS
 4% of monthly sales is automatically allocated to National
level promotions
 Promotions include: TVCs, in film placements (especially
in South India), Billboards and store display posters
 Mobile Vans for areas where KFC is not present
 Earlier used to sponsor events but stopped due to some
issues

8. Out-store Promotions Contd..
 For local promotions ( store wide or city wide) prior
permission needs to be taken.
 Local promotion: Parking slips of Alpha One mall
were sponsored by KFC
 Designing a new app to integrate all the Yum
brands.

10. INSTORE PROMOTIONS
 Decided by the top management to maintain
consistency
 Not much instore promotions only leaflets and
some posters
 Main focus on service not on promotions
 Corporate Discounts: Sodexo
 Local promotions: Some store give discounts to
college students

11. MAX (ALPHA ONE MALL)
OUTSTORE PROMOTIONS
 Security Checks in the UB of the mall had posters
of MAX
 Current scheme displayed just outside the store
 3% of monthly sales allocated to promotion
 2.5% outstore promotion, 0.3-0.5% instore
promotion
 Outstore Promotions: Billboards, Leaflets in
newspapers, a self sponsored event Max Superstar
(held recently in Vadodara)

13. INSTORE PROMOTIONS
 Very less promotions in store
 Combo discounts shown just above the stock which is
discounted
 Walls used for current store wide promotions going on
 Not much discounted products available, as already
prices are low. Just because of competitors, seasonal
sales promotions are done
 A slow moving or out of fashion is put on discount just to
clear stock
 Loyalty card for frequent shoppers, and loyal customers
are pre informed about any upcoming promotion
scheme.

16. INFO
 Store Format: Convenience Store
 Around 700 Reliance Fresh outlets across the
country
 Store sells fruits, vegetables, groceries, staples,
fresh juice bars and dairy products
 Typical Store is 3000-4000 square feet and
catchment area is 1-2 kms around
 Store visited: Science City

20. APOLLO PHARMACY
 India’s largest
pharmacy retail chain
 Over 2000 retail stores
across 22 states
 Store Visited: Science
City

21. APOLLO PHARMACY

22. DIFFERENCE BETWEEN ONLINE AND IN-STORE
PROMOTIONS

24. - Advertising
(Locally)
- Sales Promotion
- Atmosphere
- Digital
Marketing
- Email & Calling
by dedicated Call
centre
- No loyalty card
or other loyalty
program
N.A. - Word of Mouth
ENRICH HAIR SALON – HIMALAYA MALL
Impersonal Personal

25. PROMOTIONAL MIX
 Advertising
 Local cable channel
 In-store promotion by posters & banners

26. PROMOTIONAL MIX
 Sales Promotion
 Sponsorship for colleges and clubs
 Discount coupons during a particular period for
customers
 Half yearly discount offers
 Gift Vouchers
 Association with movies and Enrich academy

27.  Store Ambience

28.  Digital Marketing
 Uses website and facebook page for marketing and
promoting upcoming offers for academy as well as salon
 Personal selling
 A dedicated team works for calling and e-mailing
 Provides information on upcoming schemes, guidance
and customization of scheme
 Word of Mouth
 90% of the business comes through word of mouth and
loyal customers

30. THE TROPHY RESTAURANT – S.G. ROAD
- Advertising
- Sales
Promotion
- Atmosphere
- Digital
Marketing
- Email & SMS
- No loyalty card
or other loyalty
program
N.A. - Word of Mouth
Impersonal Personal

31. PROMOTIONAL MIX
 Advertising
 News paper advertisement
 In store promotion by posters
and banners
 Bill boards and sign boards on road

32. PROMOTIONAL MIX
 Sales promotion
 15% discount for YMCA club members
 Seasonal festivals
 Today’s special menu & offers

33.  Store Ambience

34.  Store Ambience

35.  Digital Marketing
 No significant presence on Digital platform
 e-mail & SMS
 Email & SMS are done by executives of Tomato’s to the
customers and YMCA club members
 Word of Mouth
 Dominant method of promotion

36. Literature Review

37. MEASURING THE EFFECT OF RETAIL STORE PROMOTIONS ON
BRAND AND STORE SUBSTITUTION
 Using store-level scanner data, the authors investigate the
effect of retail store price promotion, featuring, and displays on
sales of brands of disposable diapers within a city. Models are
developed for pooled store pairs to investigate the effect of
promotion on store substitution.
 Display activity for a brand resulted in increase of sales.
 One because of brand substitution within the store
 Second due to individual’s store substitution

38. ECONOMIC AND UTILITARIAN BENEFITS OF MONETARY VERSUS
NON-MONETARY IN-STORE SALES PROMOTIONS
 Now a days customers are getting attracted towards non-
monetary promotions
 The findings show that shoppers who are prone to using non-
monetary in-store promotions seek exploration, entertainment
and value expression benefits, in common with shoppers who
are prone to monetary promotions. Both monetary and non-
monetary promotion-prone shoppers feel financially
constrained.
 Non-monetary promotions may result in improved category
value and brand equity benefits.

39. REFERENCES
 Kumar, V., Leone, Robert P, “Measuring the Effect of Retail Store Promotions
on Brand and Store Substitution (1988),” Journal of Marketing Research
(JMR);May88, Vol. 25 Issue 2, p178
 Reid, Mike and Thompson, Peter and Mavondo, Felix T. and Brunso, Karen,
“Economic and Utilitarian Benefits of Monetary versus Non-Monetary In-
Store Sales Promotions (2015),” Journal of Marketing Management, vol. 31, no.
3-4, pp. 247-268
 http://smallbusiness.chron.com/components-sales-promotion-stratgies-used-
retailers-10412.html