Group 3 (mba pt-iii year) updated

INDEX

0Need of Sales Promotion Schemes

0 Sales Promotion Schemes at Consumer’s Level

0 Sales Promotion Schemes at Dealer’s Level

0 Sales Promotion Schemes at Sales Person’s Level

0 Timing, Duration and Frequency of Scheme

0 Sales Promotion in an Industry

0 Industry cases

Need of Sales Promotion Schemes

Sales Promotion Budget

The sales promotional budget derives the need ofsales promotion schemes. Various schemes are resultof the associated budget.

Competitive Pressure

With more and more brands flooding the market, thepressure to occupy display space at retail out is more.Such occupancy can be achieved by proper salesschemes.

Only Advertising is insufficient

The Advertising has reached the target audiencewhen they were away from the store. Special tool atthe point of purchase remind the buyer. These toolsare sales promotion schemes.

Sales Promotion Schemes at Consumer’s Level

1) Consumer contests with prizes

2) Price-off deals

3) Purchase price refund

4) Coupons / Cross Promotions

5) Samples / Free Trials

6) Premiums or gifts

7) Mix and Match – Percent off / unit price

8) Product Warranties

TOOLS

Sales Promotion Schemes at Dealer’s Level1) Price offs or off invoice or off-list

2) Allowances like advertising allowance or display allowance

3) Free goods on a certain quantity, push money, free specialty advertising items

TOOLS

Sales Promotion Schemes at Sales Person’s Level

1) Incentive Programs

2) Sales Contest for representatives

3) Quota allotments

TOOLS

Timing, Duration and Frequency of Scheme

Timing of Scheme

• Sales Promotion scheme should not be announced when retailer shelves are full of competitive brands.

• Weather linked products like woolens, lotions used in winter/summer etc.

Duration of Scheme

• Duration of sales promotion scheme should be such that a large percentage of customer get exposed to the promotion scheme.

• Low involvement Products are purchased more frequently, thus scheme duration can be shorter for them.

Freq. of Scheme

• For High Involvement products, to induce sense of urgency, the duration of offer can be shorter.

• To attract second wave of customers, the announcement of extension of deal period works.

• If the brand is weak, then the deal period is usually longer.

SALES PROMOTION IN AN INDUSTRY

Sales promotion within an industry depends on :

1. Characteristics of the industrye.g. In a high competitive industry , follower will follow the sales promotion scheme of the leader

2. Characteristics of the product/servicee.g High Quality Apple products following exchange offer rather than price discount.

3. Positioning of the firm in the industrye.g premium brands usually do not pursue price discount schemes.

4. Characteristics of the consumer in the industrye.g. price sensitive consumer in FMCG

CARBONATED BEVERAGES INDUSTRY

Sales Promotion Scheme Coca Cola Pepsi

Point of Sales(POS) Displays Yes, Excessive Yes, Excessive

Allotting SGA’S ( Refregerators, Table umbrella, chairs etc.) to Retailers

Yes Yes

Price Discounts No No

Decorating Retailers shop Yes Yes

Consumer Contest and Prizes Yes Yes

Attractive promotional Packaging Yes Yes

CARBONATED BEVERAGES INDUSTRY

Usually No Price Discount : • High competition in the industry. • Chances of brand erosion.• Erosion of product quality perception

in customers

Disadvantages : Firms cannot Leverage the Price Discount Schemes to increase customer base.

SUPER MARKET(APPAREL RETAILS) INDUSTRY

Selecting Sales promotion scheme must be in sync with positioning of the firm in retail industry e.g. Megamart is positioned at value for money, frequency ofdiscount schemes in a year is very less. Direct non price promotions like events, gift vouchers are preferred.

Effect of Kouton’s Price Discount Sales Scheme through the year : • Brand has eroded and now perceived as low quality product.

SUPER MARKET(APPAREL RETAILS) INDUSTRY

Pantaloon Megamart Lifestyle Westside Wills lifestyle

MAX

Positioning

FMCG products in retail malls


0 People buying from retail malls in Tier I city:

FMCG products in retail malls0 People buying from which retail mall:0 Big Bazar:

0 More stores 0 Best in offering products at low price


0 People are encouraged by which types of SP:


0 People are encouraged by which types of SP:


0Which retail mall offer best SP offer?

0 Big bazaar promotes through newspaper and TV.

Sales Promotion: Education Sector

0 Scholarships

0Group Incentive

0 Combo Offer

0 Seasonal Offer

Sales Promotion: Telecom Sector

1. Tariff Discounts : Idea, Aircel and Docomo provide cheaper call rates to attract customers. Reliance and DOCOMO (CDMA) provide unlimited free calls on their network. MTS provides Free on-net minutes.

2. Network: Airtel and Vodafone having largest network reach in the country and they promote their network rather than tariff.

3. POS displays:a. Indoor : Advertising on retailer outlets through banner, poster,

dangler, glow sign board, flex and tape rollsb. Outdoor: Outdoor hoardings, gantries, bus shelter

Consumer are price sensitive so the price discount are popular in the industry

Sales Promotion: Telecom Sector

Consumer Promotions: Aviation Sector

0 Indigo:

0 Flight+Hotel Packages

0 Special Festive Seasons offer

0 Seat Plus

0 Base fare-price off

0 Trade discounts


0 SpiceJet:

0 Price-off

0 Co-Branded cards

0 Student Discount

0 Passenger Bonanza offer


0GoAir:

0 Book 1 for 4 cities

0 Special Discounts

0 Go-Flexi


0 Jet Airways:

0 JetPrevilege Offers

0 eduJetter

0 One fare pass

0 JetPrivilege Photo Contest

0 Free Ticket to Bangkok Contest


0 JetKonnect:

0 Concessional fares

0 Jet2Kerala

0 JetPrevilege Offers

0 Lounge Inviation

0 SkyMart: Scratch & Win

0 Tickets on EMI

0 Discounts on 60-90 days advance bookings.


0Air India:

0 Gift coupons

0 Jaldi-Jaldi compaign

0 Companion schemes

Consumer Promotions: Automobile Sector

Consumer Promotions: Automobile Sector

Business

Group 3 (mba pt-iii year) updated