Consumer Promotion Techniques

2 types: Price promotions & Value promotions Find out the examples on each of these: COUPONS A price reduction offer to a consumer.
Different ways:
Instant redemption Bounce back coupons Inserts in newspapers/ magazines Direct mail Cross

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Consumer Promotion Techniques

PREMIUMS Prizes, gifts, other special offers on purchase of products at full price. CONTESTS Performing or participating in a contest and winning prizes. REBATE Cash returns offered to the consumers.

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Consumer Promotion Techniques

SAMPLING
Delivery of a product (small size) to consumers for their Use.

Ways:
In-store Direct Response Cross Media
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Consumer Promotion Techniques

BONUS PACKS
An extra quantity in a special package.

PRICE OFFS
A temporary reduction in the price of a product to the consumer.

JOINT PROMOTIONS
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Sales promotion
Incentives aimed at a firms customers (end users of the good or service/ other businesses).

Why promotions?
To increase volume To increase repeat purchase & loyalty To widen usage To build up momentum To deflect attention from price

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Promotional objective
Who do I want to do what? Example (Brand: Beer XY) CATEGORIZATION I Existing drinkers Drinkers who buy other brands People who vary in what they drink Home drinkers Pub/ bar drinkers
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Promotional objective
CATEGORIZATION II Tennis players Golfers Amateur pop singers Fashion followers Music devotees

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Promotional objective
Combining the two categories:
Tennis players & people who vary in what they drink

Promotion objective:
We want tennis players who are not consistent in their choice of drinks to try our Beer XY at least once a week in their clubs after their game.
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Promotional objective
The incentives then could be:
A chance to play with a celebrity A discount on tennis kit

Implementation of the promo:

(Who)- Bar steward, the Club Committee, tennis players (What)- to suggest that a cool Beer XY is the best after a game
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Mind mapping
Luxury wrist watch sophisticated, educated, traveler airline tickets, holiday package.

Soft drink young, fun loving fast food, movies, restaurants Television ? Cellphone ? Laptop ? Luxury car ? Penthouse ?
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Suppliers
Tie ups with other companies Item manufacturers Printers Ad agencies, Promo agencies, PR agencies

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CAMPAIGN
Brand - Potato Chips XY TA Children/ Teenagers 6 to 14 (Choose one subcategory if you want) Location: Delhi Promotion: To increase the sales volume of XY in Delhi. Promotion Period: Dec 20 to Jan 20, 2013 No promo agency involved for the operations/ management. Brand Manager to handle operations.

As a Brand Manager/ Promotions Manager, create a Gantt chart for the promo, mentioning each activity.
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CAMPAIGN
Some cues Any printer, items manufacturer required? (vendor/ supplier management) Logistics for the campaign? Any redemption? Inter or intra company tie ins? Advertising required? POPs? The expenditure areas?
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CAMPAIGN
Let us assume:
Plant is at Ludhiana; HQ at Gurgaon 1 CFA (out of 35 across Diff states in India) in Delhi 5 wholesalers (1 each for N,S,W,E,C Delhi) 3 stockists for each of the abovementioned 5 areas Assume there are 10,000 outlets in Delhi Average pack sale/day from an outlet is 6 Total pack sale/ day in Delhi = 60,000 So for 1 month = 18,00,000 The co. decides that 1 of every 6 packs should have an insert. 3,00,000 inserts and 12,000 gift item (flasks) will be required. (Assuming conversion rate of 4%) 100 outlets are chosen as redemption centers (RC). Each RC to stock on an average 120 flasks for the promo.
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CAMPAIGN
Calculating the promo cost:
Cost of 12,000 flasks (@ Rs 10 each)= Rs 1,20,000 + Cost of insert, print ad, POS material production and POP printing = Rs 5,00,000 +Cost of TVC production = Rs 25,00,000 +Print Media cost (8 insertions) = Rs 20,00,000 +TV Media cost (on air daily) = Rs 1,00,00,000 TOTAL cost for the entire promo = Rs 1,51,20,000 How to find out profit or loss?
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Trade Promotion Techniques

Dealer contests on sales performance Dealer contests on merchandising Dealer gifts Dealer meets POS material (dispensers, racks, posters, danglers, stickers, baskets, stands, crates, cold storage refrigerators, etc.) Shop boards Dealer discounts Trade fair participation
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Public Relations
Process of engaging the TA (employees, shareholders, customers, media, trade, government, suppliers, etc.) so that it responds favorably to the intended communication and forms a positive image of the brand and/or the company.

May be to: Bring about a correction in the image [Cadburys, Dhara] Project a socially responsible image [ITC]

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Public Relations
Ways: Press releases
Corporate brochure Annual report

Poster, flier, leaflet

Newspaper article, internet write ups Television/ radio programs Corporate films
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Assignment
Create promotion campaigns (show the implementation plan through a Gantt chart) for the period Dec 25, 12 to Jan 24, 13 for the following brands: Scala Double Bull iPhone 5 Lifebuoy Hand Sanitizer Kingfisher Beer
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