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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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Ways:
In-store Direct Response Cross Media
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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
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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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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
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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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