Professional Documents
Culture Documents
OF
PROMOTIONS MANAGEMENT
(MGT401)
SEC:- R1814
Sales promotion can be gimmicky come-ons or solid marketing strategies. They can attract new
customers to your business or keep loyal customers from being wooed by the competition. This
project defines sales promotions and discusses the way by which sales promotions help in
rewarding the loyal customers.
Most sales promotions have a specific duration. They produce result quickly,
but once the promotional period is over, those incentive-induced sales tend to
taper off. A properly designed sequence of sales promotions can accomplish
several marketing objectives:
Over the past two decade, the popularity of sales promotion has
The objective of the sales promotions are different for different targets. The
objectives for the consumers, sales people and resellers are as follow:
Contests
Coupons
Aisle display
Samples
Trade shows
Point-of-purchase materials
Banners and streamers
Sponsors
Aimed at middlemen:
Price deals
Promotion allowances
Sales contests
Gifts
Trade shows
Meetings
Catalogs
Merchandising aids
Contests
Meetings
Portfolios
Displays
Sales aids
Training materials
PROMOTION STRATEGIES:
So, he/she waits till Diwali and buys the product. Unwittingly, the company
trades down its own product.
CONCLUSION-
SALES PROMOTION-
Consumer-Oriented Promotions:
1. Samples
2. Coupons
3. Premiums
4. Refunds/Rebates
5. Bonus Packs
6. Price-Offs
7. Contests/Sweepstakes
8. Frequency programs
9. Event Marketing
Sampling:
The products are of relatively low unit value, so samples do not cost too
much.
The products are divisible, which means they can be broken into small
sample size that are adequate for demonstrating the brand’s features and
benefits to the user.
The purchase cycle is relatively short, so the consumer will consider an
immediate purchase or will not forget about the brand before the next
purchase occasion.
Couponing:
The oldest, most widely used, and most effective sales promotion tool is the
prices-off coupons. Coupons make it possible to offer a price reduction only to
those consumers who are price-sensitive. Coupons also make it possible to
reduce the retail price of the product without relying on retailers for
cooperation. Coupons can encourage repurchase after initial trial.
The product category where coupons are used most is disposable diapers,
followed by cereal, detergent, and deodorant. Some of the product categories
where coupons are used the least are carbonated beverages, candy, and gum.
But there are a number of problems with coupons. It can be difficult to estimate
how many consumer will use a coupons and when. Response to a coupon is
rarely immediate; it typically takes anywhere from two to six month to redeem
one. However, coupons remain less effective than sampling for including initial
product trial in a short period.
Premiums:
A premium is an offer of an item of merchandise or services either free or at a
low price that is an extra incentive for purchases. The two basic types of offer
are the free premium and the self-liquidating premium.
Free premium are usually gifts or merchandise included in the product package
or sent to consumers who mail in a request along with a proof of purchase. Free
premium have become very popular in the restaurant industry, particularly
among fast-food chains such as McDonald’s and Burger King, which use
premium offers in their kid’s meal to attract children.
Self-Liquidating Premium require the consumer to pay some or all of the cost
of he premium plus handling and mailing costs. The cost marketers usually
purchases items used as self-liquidating premiums in large quantities and offers
them to the consumers at lower-than-retail prices. The goal is not to make a
profit on the premium item but rather just to cover costs and offer a value to the
consumer.
Bonus Packs:
Bonus packs offers the consumer an extra amount of product at the regular
price by providing larger containers or extra units. Bonus packs result in a lower
cost per unit for the consumer and provide extra value as well as more products
for the money. There are several advantages to bonus pack promotions. First,
they give marketers a direct way to provide extra value without having to get
involved with complicated coupons and refund offers.
The additional value of a bonus pack is generally obvious to the consumers and
can have a strong impact on the purchase decision at the time of purchase.
Another type of consumer oriented promotion that has become very popular
very in recent years is the use of event marketing. Event marketing is a type of
promotion where a company or brand is linked to an event or where a termed
activity is developed for the purpose of creating experiences for consumers and
promoting a product or service. Marketers often do event marketing by
associating by associating their product with some popular activity such as a
sporting event, concert, fair, or festival. However, marketers also create their
own events to use as a promotional purpose.
Price-Off Deals-
Another consumer oriented promotion technique is the direct price-off deal,
which reduce the price of the brand price-off reductions are typically offered
right on the package through specially marked price packs. Typically price-off
range from 10 to 25 percent off the regular price, with the reduction coming out
of the manufacturer’s profit margin, not the retailer’s. Keeping the retailer’s
margin during price-off promotion maintain its support and cooperation.
Frequency Program:
Trade-Oriented Promotion:
12.Training Program
13.Trade Allowance
14.Trade Shows
15.Cooperative Advertising
COMMUNICATION PROCESS
MESSAGE:-A message is an object of communication. It is a vessel which
provides information. Yet, it can also be this information. Therefore, its meaning
is dependent upon the context in which it is used; the term may apply to both the
information and its form. There should be a proper tag line that should be used
in order to send the message to the target audience. The tag line though it seems
to be not of much importance but in real terms it is used to convey the message to
the target audience. The message should be send in a good way so that the
consumer understands it and is attracted towards the product. The message I
will use will be solid one.
MEDIUM:-There are various mediums which can be used for sending the
message to the target audience. TVs, radio, business magazines, newspapers etc
can be used as a medium. As majority of men/women listen to the radio mostly
the women in the age group of 18-25 so this will be the appropriate source to tell
the consumer about the product. Moreover the various TV channels can also act
as a source for the sending of message from the sender to the receiver. Selecting
the mediums is an essential part, if the wrong medium is selected then the sales
will not increase and on the other hand if the right medium is used then the
awareness is generated among the audience regarding the product. So different
medium can be used for awareness about the VIP luggage.
TYPE OF MESSAGE USED: - The message formats are a template for
determining the advertising strategy that will be told in the form of story. In case
of VIP luggage, I will try to use various types of messages such as factual, teaser
and emotional.
b)TEASER:-As the teasers are the mystery advertisements in which only a little
bit is told about the product and by this way a curiosity is generated among the
consumers and the consumers purchase the product ,so this thing can also be
used in case of theluggages.
MESSAGE APPEAL:-The message appeal used in the case of VIP luggage will be
emotional appeal. The emotional appeal tends to arouse the positive as well as
negative feeling in a person. Customers usually buy the products based on their
feelings and not on the basis of information the product is providing. The
emotional statements work more than a pure logic. Humorous appeal will be
used in my ads.
Communications Analysis
Marketing Communication strategies for are almost fully concentrated on print
advertising and electronic ad. Depending on how the differentiates and positions itself
the print ads can be found in newspapers and local community magazines or high-end
regional magazines and electronic ad will be shown on entertainment channels like
star plus, Sony, zee etc. Besides these channels the ad will also be shown on movie
channels and sports channel. Internet will also be used as a medium of
communication.
Competitive Analysis
VIP has direct competition with other luggage companies like
aristocrat,safari,American touristor make and local luggage companies. Thus the
consumers have a lot of choice in the market as far as luggage companies are
considered. Most of the competitor gives their ad on magazines and news paper etc.
Thus the role of IMC becomes very important in establishing a strong brand
presence in the market which can differentiate our brand from the competitors.
ADVERTISING CAMPAIGN
ADVERTISING OBJECTIVE
• To develop knowledge and liking for VIP luggage as a best brand and persuasive
advertising.
Objective – 1
Objective – 2
Objective – 3
Providing detailed description about various communication modes for reaching the
destination.
Objective – 4
ADVERTISEMENT BUDGET
To advertise we need funds for the same. The preparation of budget i.e. allocation of funds to
various cost centres is very much necessary before proceeding for the designing of the
campaign. It is a very critical aspect of the designing of the advertisement campaign. After
all the reason behind this is the profit motive of the advertising agency.
We have considered some of the underlying factors while setting the advertisement budget:
1. Since our product, VIP luggage, is in its introductory stage in its life cycle so we plan
comprising local newspapers, cable, radio and FM stations, internet, billboards and
national dailies.
3. The kind of frequency which we have planned has also played a determining factor in
In this present scenario, our team has followed the “Build-Up” approach in calculating the
advertisement budget. The “Build-Up” approach refers to the process of calculating the
method involves:
2. Strategies and tasks to be undertaken – Advertise in local and national dailies, cable
billboards, and radio. Thus forming the major part of the cost. Apart from that there
VEHICLE
Newspap Rs. 25,000 x Rs. 25,000 Rs. 25,000 Rs. 25,000 Rs. 25,000 Rs. 25,000 Rs.
mentione
d based
on our
target
audience
)
Radio Rs. 36,000 Rs. 27,000 Rs. 45,000 Rs. 18,000 Rs. 18,000 Rs. 18,000 Rs.
1,62,000
Local Rs. 2,000 x 2 Rs. 2,000 x Rs. 2,000 x Rs. 2,000 x Rs. 2,000 x Rs. 2,000 x Rs.
s and x 50 = Rs.
posters 2,50,000
Unit for newspapers: cost/cm2 is to be Rs. 360. A total of Rs. 25,000 for the half page
Total budget for the advertisement campaign comes out to be Rs. 47,02,000 for the period
October to December. The tender which we have filed is of Rs. 70,00,000. Thus our margin
will be Rs. 18,00,000 after apportioning Rs. 4,00,000 to various miscellaneous expenditures.
MEDIA STRATEGY
Demographics of our target audience, their attitudes, etc. have suggested us to take the media
3. Radio – FM stations have tie-ups with the local newspapers so we have selected these
media vehicles which are BIG FM, Radio Dhoom & Radio Mantra.
Newspaper has the widest reach among the various media vehicles. The cost for advertising
via this media is relatively less. The reach of this media to our target audience is estimated to
be the largest. One of our objectives is to make 90% of our target audience aware about the
tourist destinations in INDIA and newspapers in the form of local and national dailies can
very well comply with this objective as it has the benefit of mass coverage. It is basically an
awareness based campaign so we are required to provide the details and specifications about
VIP luggage. security concerns, communication aspects, expenses involved and other such
details. For all this we require a large media space and newspapers does a good job in this
regard. The pamphlets which we have designed to promote VIP luggage can be inserted in
the newspapers and thus circulated in the country. It involves lesser cost, more information
and larger reach. So newspapers are our first priority in our media mix. we have planned to
focus three of the premier stations of india through which we can grab the attention of people.
We have selected various cities of the state where billboards and posters can be put up. In
this regard we have chosen locations where the density of our target audience is the
maximum. Our research has shown that the people of the country prefers VIP luggage. Thus
the number of billboards and posters to be put up is decided to be the maximum in the
country.
Following is the details of the billboards and posters put up in various cities:
delhi 10
ludhiana 8
mumbai 8
jaipur 6
kolkata 3
bangalore 3
Others 10
This gives a basic structure of how we proceeded with the outdoor media, name of the places
where the hoardings will be put up in the various cities are not maintained but that will be
MEDIA SCHEDULING
Time period assigned to us is from October to March. This time period is full of festivities
and vacations. Based on this and our target audience we have planned to segregate the entire
campaign into two parts - an aggressive campaign upto December followed by a steady
Scheduling is concerned with timing the insertion of advertisement in selected media. The
First three months i.e. from October to December - Our media scheduling approach will that
be of continuity.
Next three months i.e. January to March – Our media scheduling will that be of flighting.
This has been decided keeping in mind the various festivals that would take place in the first
three months of our campaign. In the first part we can see that there are lots of vacations like
winter holidays, Christmas and Diwali when people break their daily monotonous routine and
plan to purchase things. Thus our objective would be grabbing the attention of those people
in this favourable time period the most. Hence continuity has been chosen to support the
In the second half the frequency of ad insertion will be less and will focus on developing the
Radio – Mentioning everyday: 1st month - 4; 2nd month – 3 & 3rd month – 5
(In December people plan to visit more places of customer attraction so we have decided to
CREATIVE STRATEGY
Now we come down to the most vital component of the advertisement campaign i.e.
Message Theme
Our message theme has been a blend of emotional and rational approach. Numbers, letters,
words and concepts have been specified for ascertaining the rational themes. Feelings,
abstract ideas, images have been effectively designed to strike a balance for the message
theme.
We have tried to develop the relevance of VIP luggage for the audience of india in respect of
1. Benefits accrued (In our ads we have tried to focus on the value proposition involved
2. Attributes which give the distinctive difference to VIP luggage have also find a
mention in the various ads of ours through various media vehicles so we have applied
the concept of product differentiation to adhere to one of our objective of liking. And
we have the various distinctive differences and we have tried to insert at specific
3. The USP of our product i.e. VIP luggage have found a mention in the punch lines of
our ad campaign. The biggest advantage which VIP luggage provides is that our
target audience can avail the benefits of quality and less cost.
4. Our focus will be on providing the distinctive differences, and advantages on the cost
PRE-TEST OF AD CAMPAIGN
emphasised. Moreover if the error can be detected at an early stage a lot in terms of energy,
1. Direct questioning: We will go to the mentioned cities and through direct questions
we will try and get feedback about the effectiveness of the ad.
2. Order of merit: Respondents are shown alternative ads and asked to rank them
For Broadcasting:
1. Clutter test: We will try and measure whether our audios and videos are able to break
Once the ad is designed, pre-test done and the ad is released to generate an effective feedback
we sincerely advice for effective post testing technique. This will truly measure the
effectiveness of our ad campaign in respect of our objects met. We can follow the below post
test techniques:
1. Recall
2. Tracking studies
BIG IDEA
The campaign will be known as ‘Feel your own soul’ campaign and should be designed in
such a way that it catches the attention of the target audience so that they have to stop look
and listen.
Relevance – Festive season will attract more people. Moreover the idea talks about feeling
your own soul as our target audience are the inhabitants of Jharkhand itself.
The punch line which will transfer the selling strategy statement into an exciting attention
“There are many things in life that will catch your eye.
The main purpose of the study is to know the effectiveness of the promotional
Activities in luggage industry. From the study we Expect to know to what
extent the promotional activity benefited to the industry and what the things are
that customer expects to do from the industry to improve sales.The effectiveness
of promotional activities helps the company to increase the sales and encourage
the repeat purchase. We also try to know the awareness of the sales promotional
activities as advertising plays an important role in sales Promotion.
Recommendations-
• This study help us to find out the best and cheapest advertising and sales
promotion methods.
• This study save our valuable time and money to choose a best advertising
method