Promotional Strategy

Impact of Sales Promotion on Brand Evaluation in Children

Group 6

Problem Definition and Methodology

Objective
Primary purpose of sales promotions is to induce the consumers to make a quick buying-decision in order to create increase in sales To get a clearer picture of the impact that consumer sales activities carried out by different companies have on brand evaluation of children

Motivation
Increasingly targeting children in order to acquire them at an early age in order to achieve sustained loyalties for long The effectiveness of such promotional activities is difficult to accurately measure

Methodology
Literature Review Secondary Research on different sales promotions Qualitative Research Quantitative research

Types of sales promotion used to market food products

Price discounts Extra-product price promotions
Direct price discounts such as 50% off Coupons issues by the manufacturers or supermarkets Discounts via supermarket loyalty cards, Refunds
Free with-purchase (buy-one-get-one-free) Reduced price on purchase (buy 1 and get 1 at reduced price) Multi-purchase (3 for price of 2), Bonus size packages Free with purchase gift Reduced price with purchase gifts

Premium promotions Collector promotions

Prize promotions Feature and display promotions Sampling promotions

Collecting vouchers/food labels/beverage container tops in return for gift

Sweepstakes, Instant wins Lotteries, free draws, competitions

Front of store display, Advertising at point-of-sale End of aisle display, In store banners, in store flyers; Shelf-talker (graphic attention seeker), packages get attention
Taste samples provided in a retail store Free samples attached to another product

Akers Brand Equity model

Marketing aimed at childrenTurning children into consumers

Children represent three different markets

Direct spenders
Influencers Future market-Loyality

Stages of evolution of a child consumer Accompanying Parents and Observing (atop a shopping cart) Accompanying Parents and Requesting Accompanying Parents and Selecting with Permission. Accompanying Parents and Making Independent Purchases Going to the Store Alone and Making Independent Purchases According to Direct Marketing magazine, by 8 years children make most of their own buying decisions Modern urban children can often recognize brands and status items by the age of 3 or 4, before they can even read

Child Brand relations

-Insights based on research (literature review)
Brands are inanimate objects associated with human characteristics (Aaker 1997) and can be animated, humanized, or somehow personalized (Fournier 1998), there is a potential for children to develop relationships (i.e., attachment) with brands As children get older, their motivation to develop relationships with brands to develop self-concept goes through three stages: owning the brand (level 1: early childhood), knowing the brand (level 2: middle and late childhood), and connecting oneself with the brand to seek popularity and acceptance (level 3: early adolescence). To under the relation between children and brand, Children as potential relationship partner (CPRP) framework is used and as per the framework it depends on 3 factors Motivation (M), Opportunity (O), and Ability (A).

The Tree structure shows the effects of sales promotion on the product

Child Brand relations

-Insights based on research (literature review)
Brand recognition commences at an early age with older age groups having greater brand awareness (Ross et.al. 2004) The earlier the marketer establishes brand awareness and recognition in the child, the stronger the brand association and imagery are likely to be when they become independent as consumers (Ross et.al. 2004) For a child the world is still extremely complex, therefore they tend to follow the bandwagon, believing majoritys choice is the best choice for them. This changes during adolescence where they try to find their own identity. (Dammler et.al. 2002)

Authenticity, points of differentiation, freshness and multi-channel brand messaging illicit a strong and favourable response. The demographic has to be engaged with fun, fantasy and a bit of humour to keep the brand fresh and alive. (Study sponsored by Millward Brown, 2003)

Key influences on children

Child as unsophisticated consumer Child as reliant consumer

physiological

safety Parents Belongingness and love

Advertisemnets Peers role models family Expressing individuality

Child develops as consumer

Awareness and recognition stage

esteem Early awareness= strong brand associations and image

Sophisiticated consumers

Child becomes independent consumer

Self actualisation

Examples of sales promotions aimed at children and teenagers

Kelloggs Star Wars
Coincided with the release of final Starwars movie- Revenge of the Sith Free Light sabers Chance to win a Light Saber signed by the actor Chrisopher Lee One of 500 runners-up prizes of a Hasbro electric Light Saber

Cadbury's Creme Eggs Treasure Hunt

Creme Eggs are to be found roaming the internet on sites including MTV, Yahoo and Youtube. Consumers are challenged to locate them and enter a special code into the website for a chance to win a range of prizes Creme . Egg key rings, spoons, beach balls, Red Letter Day experiences and a trip to New York

Mc Donalds Happy Meals

Happy Meals contribute 10% of Mc Donalds sales Appealing to the kid's emotional connection to the toy and making the parent feel good about going to McDonalds through other offerings

Examples of sales promotions aimed at children and teenagers

Lays Tazo
1997 when Star wars trilogy was released in special edition Tazo contained a score value Game was played to win tazos from others Key Success factor: Marketed as a collectable

Uncle Chipps
Amazzo in 1998 Discount offers: 33% extra

Motivation for Selection Kids are the decision makers in chips category. Brands in this category communicate to kids exactly what they are looking for. Pricing is between Rs. 5 to 20 and therefore fits the pocket of kids

Examples of Bournvita and Horlicks sales promotions

Bournvita
1970 Borunvita quiz contest, radio programme, Bournvita book of knowledge free 1990-91 A series of four games on packaging Bournvita Confidence Academy, July 2007 on Pogo

Horlicks
Horlicks Wiz kids contest 2012 South Asias largest inter school fiesta, over 10,000 schools Exam Campaign' which gives away a useful and attractive exam board with every 400g pack of Horlicks. Other freebies offered were sketch pens, boxing gloves etc.

Motivation for Selection Kids are the key influencers to parents who are decision makers in this category. Brands in this category target kids by giving premiums and organizing events. The price range varies from Rs. 85 to 350.

Qualitative Research

I buy the biggest pack on rack

Demographic Average age: 10 years Tier II city

I buy what my friends buy

I like free toys

Psychology
Additional benefit attracts Influenced by peers

I always drink Bournvita

I want to buy the same toy my friends has

Flow of Questionnaire
Do you use the product category? No STOP

Yes
Who makes the purchase decision?

Which brand do you prefer buying? (among the two) Either of the two brands Which of the following would you buy? Preferred brand without promotion Indifferent

What would you think of a friend who bought? Brand 1 with price/volume discount

Less preferred brand with a free gift

Less preferred brand with price/volume discount

Brand 2 with a free gift

Flow of Questionnaire-Cntd. Flow of Questionnaire contd. Preferred brand without

promotion Less preferred brand with price/volume discount Less preferred brand with a free gift

What would you think of a friend who bought?

Less preferred brand with price/volume discount Less preferred brand with a free gift

Record the answers provided by the children to these questions (qualitative answers ) and record them as Favorable (5) Unfavorable (1)

Ask reasons for choosing and if they thought a brand with such scheme was better

Sample Questionnaire
Sample Survey Do you use malt beverages? - Yes Do you decide which brand to purchase or your parents?
I ask my parents and they buy

Which is your favorite brand? - Complan Which would you prefer buying among Bournvita and Horlicks? -Either of the two What would you think of a friend who bought Bournvita with a price discount?
He spends his parents money wisely

Is that a good thing to do? - Good? I dont know. Smart thing yes! Do you think Bournvita is a better brand because it gives discount?
I think they use cheap quality material, thats why.

What would you think of a friend who bought Horlicks with a freebie?
Depends on what the freebie is

Lets say its a cool toy a transformer!- Sounds interesting So what would you think of the friend?
He has a good choice of products, I would say

Do you think Horlicks is a better brand because it gives freebies?

Yes

Results and Conclusions Drawn Sample Survey contd.