100 Mks Project

Sales Promotions for Children

INTRODUCTION TO SALES PROMOTION:

Sales promotion refers to many kinds of incentives and techniques directed towards

consumers and traders with the intention to produce immediate or short-term sales

effects.

DEFINITION:

“Sales promotion includes incentive-offering and interest creating activities which

are generally short-term marketing events other than advertising, personal selling,

publicity and direct marketing.

The purpose of sales promotion is to stimulate, motivate and influence the purchase

and other desired behavioral responses of the firm’s customers.”

More on it……….

Sales promotion offers a direct inducement to act by providing extra worth over and

above what is built into the product at its normal price. These temporary inducements are

offered usually at a time and place where the buying decision is made. Not only are sales

promotions very common in the current competitive market conditions, they are

increasing at a fast space. These promotions are direct inducements. In spite of the

directness, sales promotions are fairly complicated and a rich tool of marketing with

innumerable creative possibilities limited only by the imagination of promotion planners.

Sales promotion is often referred to by the names of ‘extra purchase value’ and ‘below-

the-line selling’.

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Used to achieve short-term sales:

Sales promotion is a separate and distinct element in the promotion mix and is an

important and powerful tool of marketing. The aim of sales promotion is goal-oriented to

achieve sales/marketing objectives which are short-term and immediate.

Becoming too common:

Today we find companies in almost all sectors offering some sort of a promotion scheme.

These sectors range from automobile to beverages, from financial services to foods, from

household durables to services, from household products to business products, from

personal care to textiles and apparel.

Writing about sale promotion tools, Prof. Philip Kotler observes – “they have three

distinct characteristics.”

1) Communication: they gain attention and usually provide information that may

lead the customer to the product.

2) Incentive: they incorporate some concession, inducement, or contribution that

gives value to the consumer.

3) Invitation: they include a distinct invitation to engage in the transaction now

(offer valid till………….or till stocks last)

Major users of sales promotions are marketers of soaps, detergents, toiletries, soft drinks,

tooth pastes, tea, coffee, footwear, textiles, readymade garments, consumer durable

goods, music systems, autos, televisions, washing machines, microwave ovens,

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refrigerators, magazines and many other household items. Infact the list of product

categories using sale promotion is ever-increasing, no matter what the product category;

it could be staples, impulse goods, emergency goods, shopping goods, speciality goods,

unsought goods, industrial products, or different types of service.

Sales promotion is now established as an important and increasingly respectable element

of the marketing communication tools. Sales promotion expenditures are increasing

dramatically, and economic recession is most likely to fuel this trend further.

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ADVANTAGES OF SALES PROMOTION:

Sales promotions have a significant effect on the behaviour of consumers and trades

people. Such promotions can bring in more profits for the manufacturers because they

permit price discrimination.

PRICE DISCRIMINATION:

Producers can introduce price discrimination through the use of sales promotion. They

can charge different prices to different consumers and trade segments depending on how

sensitive each segment is to particular prices. Coupons, special sales events, clearance,

sales and discounts are example to explain the phenomenon.

Often such price discrimination is offered in specific cities in the country. Such price

discriminating sales promotions that enable consumers and traders to pay less in certain

market area or stores usually bring in more contribution than if one price is charged to all.

Such price discrimination also held in adjusting to fluctuations in demand and supply

situation without affecting any changes in the list price.

EFFECT ON CONSUMER BEHAVIOUR:

As sales promotions are mostly announced for a short period, customers may feel a sense

of urgency and stop comparing the alternatives. They are persuaded to act now rather

than later.

With every 500kg pack of Bournvita, you get a free mug. Offer valid only till stocks last.

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In our over communicated society and because of selective attention, it is not uncommon

to ignore many advertisements. Sales promotion deals such as discounts, debates,

coupons, premiums, etc also increased the attention getting power of advertisements and

convey the advantages and benefits of the brand, including price information. By using

promotions, marketers can reach the deal prone customers and encourage brand

switching.

EFFECT ON TRADE BEHAVIOUR:

Short-term promotions present an opportunity and encourage dealers to forward buying

ensures that retailers won’t to go out of stocks. As dealers have more than the normal

stocks, they think it advisable to advertise in local media, arranged displays and offer

attractive promotion deals to consumers. These actions help in increasing the store traffic.

REGIONAL DIFFERENCES:

The south is generally characterized by greater degree of going out and people tend to

drink outside the house. The Tamilian, consumer in particular, is value oriented, rational

and looks up to film stars, while the Keralite is more international in his outlook. The

Banglorean is as cosmopolitan as his Mumbai or Delhi counterpart.

That sort of diversity believes Coca-Cola, calls for a corresponding variety in promotions.

The place to attract is the retail zone. Coca-Cola launched a promotion called “world of

Coca-Cola” covering Chennai in Tamil Nadu and Bangalore and Mysore in Karnataka. It

was a value deal, aimed at the consumer disposed towards global-style outings. The

consumer pays Rs.20 along with a label of a 500ml of PET bottle to get a card that

entitles him to gifts and discounts at 29 outlets, including those of global chains such as

TGI Friday and Baskin and Robbins this, in these cities. About four years ago, Pepsi had

a similar promotion with its Pep cards. This, however was on a national level, while the

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Coca-Cola promotion is south based build retail level activity matters more than it does in

the North. The primary aim is to help the retail raise volumes.

DISADVANTAGES OF SALES PROMOTION:

While sales promotion is a powerful and effective method to produce immediate short

term positive results, it is not a cure for a bad product or bad advertising. In fact, a

promotion is speed up the killing of a bad product.

INCREASED PRICE SENSITIVITY:

Frequently promoted brands in the product category, especially on the basis of price,

make consumers and traders more price sensitive not only for the promoted brands but

for other brands as well in the same product category.

Consumers wait for the promotion deals to be announced and then purchase the product.

This is true even for brands where brand loyalty exists. Customers wait and time their

purchases to coincide with promotional offers on their preferred brands.

QUALITY IMAGE MAY BECOME

TARNISHED:

If the promotions in a product category have been rare, or the product happens to be of

high involvement category, the promotions could have a negative effect about its quality

image. Consumers may start suspecting that perhaps the product has not been selling

well, the quality of the product is true compared to the price or the product is likely to be

discontinued because it has become it has outdated.

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DEALERS FORWARD BUY AND DIVERT

STOCKS:

In case of deals for the trade, many dealers forward buy, in excess of their inventory

requirements. This is particularly happens if a product is low bulk, much in demand and

the inventory holding costs are favorably low. This is true both wholesalers as well as

retailers. Forward buying of excessive stocks on deals or quantity discounts can lead to

diversion of some of the stocks in non-deal areas. Forward buying of excessive stocks in

deals or quantity discounts can lead to diversion of some of the stocks in non-deal areas.

Wholesalers and retailers do not hesitate in selling these excess stocks in non-deal areas

on prices that are less than the list price, but keeping some reasonable margin for

themselves. This is likely to have a negative effect on price discrimination efforts of the

company as dealers and those areas would not be buying even the normal requirements

from the company.

MERCHANDISING SUPPORT FROM DEALERS IS

DOUBTFUL:

One of the trade promotions tool is to offer promotional allowances to trade people to

motivate them to provide merchandising support and to pass on some benefit to

consumers. This generally is the condition attached with such promotional allowances. In

many cases, the dealers do not cooperate in providing the merchandising support nor do

they pass on any benefit to consumers. The retailer might not be willing to give support

because he does not have the place, or the product does not sell much in his shop, or may

be he thinks the effort required is more than the commission/benefit derived.

SHORT-TERM ORIENTATION:

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Sales promotions are generally for a short duration. This gives a boost to sales for a short

period. This short-term orientation may sometimes have negative effects on long-term

future of the organisation. Promotions mostly build short-term sales volume that is not

maintained. Heavy use of sales promotion, in certain product categories, may be

responsible for causing brand quality image dilution.

The argument given in favour is that companies should develop superior products or

services which are better than competitors and consumer should be convinced through

appropriate and focused advertising about the superiority of the products and its image.

This will result in lasting brand identities reflecting brand image will keep customers

loyal to the brand.

DIFFERENCE BETWEEN ADVERTISING AND

SALES PROMOTION:

ADVERTISING SALES PROMOTIONS

By using a variety of persuasive appeals, it offers reasons to buy a product or service.

Besides giving reasons in the form of different appeals, they offer incentive to the consumers to buy the product or service now.

Appeals are emotional or functional in nature.

Appeals are rational.

Time-frame is long term. Time frame is short term

The primary objective is to create an enduring brand image.

To get sales quickly or induce trail.

Indirect and subtle approach towards Direct in approach to induce consumers to

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persuading customers to buy a product or service.

buy a product or service immediately by temporarily changing the existing price-value relationship of the product or service.

But both advertising and sales promotions go hand in hand. Both are very essential to

achieve success. Both are complementary to each other.

REASONS FOR RAPID GROWTH OF SALES

PROMOTION:

There are a number of reasons that are favorable to the growth of sales promotion:

INCREASING COMPETITION:

The air of change is gaining momentum after the introduction of economic liberalization.

Due to increase in competition, companies are finding it increasingly difficult to compete

on quality. They are therefore resorting to more and innovative methods of sales

promotion. Customers Have Become More Price Sensitive. This increased price

sensitivity is a direct result of rampant inflation. Economic recession is likely to fuel this

trend further, as consumers and dealers become more sensitive towards prices.

SALES PROMOTIONS GENERALLY CREATE AN

IMMEDIATE POSITIVE IMPACT ON SALES:

Advertising, personal selling and other methods of promotion produce slower sales

response compared to sales promotion. Sales promotions are mostly for short duration,

for a specific period, leading to a sense of urgency in consumers to buy now. This creates

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an immediate positive impact on sales. With careful planning, it would not be difficult to

measure the impact on sales volume and profit, and see the consequences of running the

promotion even on weekly or daily basis.

PRODUCTS HAVE BECOME MORE STANDARDISED:

In many product categories, there is a proliferation of brands; many of them are line

extensions and me-too brands. Most brands are being perceived by consumers to be more

or less similar within a given price range because of the inability of manufacturers to

develop truly differentiated products. Under these circumstances, advertising messages

are unable to strongly influence the consumers’ perceptions and create brand franchise.

As a result of these perceptions of similarity among brands, marketers have no way but to

compete on the basis of extra benefit offered through sales promotion. Competing

companies struggle to capture market share by using every tool likely to bring sales

success.

CONSUMER ACCEPTANCE:

As competition intensifies and promotions proliferate, consumers have learnt to earn the

rewards of being smart shoppers. Over a period of time, they have also learnt that brands

on promotion are not necessarily of lower quality.

Woodland has a scheme of upto 50% off on Woodland shoes and apparel.

This learning based on experience, gets transferred to other product categories as well.

Consumers have learnt that promotions are being extended to many product categories

where, such promotions were unheard of.

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EXPECTATIONS OF PRICE DECREASE:

With the entry of many different brands of consumer durable products in the same

product category, consumers anticipate that the prices of durable goods will come down.

This encourages them to postpone their purchases. To speed up the purchase in this

segment of consumers, sales promotions are an effective and attractive method.

Consumers evaluate the incentives associated with their purchase decision and are

motivated to act now, rather than wait for the anticipated decrease in price. The marketers

should ensure that the extra benefit is attractive enough to create a sense of urgency in

consumers.

ADVERTISING HAS BECOME MORE EXPENSIVE AND LESS

EFFECTIVE:

All the advertising media have become quite expensive. Audio-visual medium, which is

considered as the most effective for short-duration ads, may cost in excess of Rs.1 lakh

for a 10 second exposure during prime time. In many case, consumers have reached a

point of boredom due to excessive advertising on TV. Some consumers even consider

advertising as an intrusion into their privacy, leading to zapping (surfing channels). Firms

with small budgets cannot compete with big companies which spend huge sums of

money on advertising. For these small budget firms, sales promotion is a more cost-

effective promotion method to produce sales results.

TRADE HAS BECOME MORE POWERFUL:

Retailers and wholesalers have become powerful and find themselves in a position to

demand extra facilities to the companies. They channel members demand more incentives

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to get the desired results. Manufacturers do not seem to have any alternatives but to

concede to their demands, keeping in view the competitive market conditions.

Pepsi offers silver coins to their dealers stocking Pepsi cases during Diwali season. And

the promotions offer differs across dealers.

EMPHASIS ON SALES VOLUME:

Towards achieving the long-term profit goal, manufacturers try to attain high sales

volume. Brand managers and product managers find themselves under pressure to

achieve short-term sales results for the sake of their careers. Compared to any other

promotional method, sale promotion is a more effective method to generate short-term

sales volume.

SALES PROMOTION MAXIMISE PROFITS:

A number of economic theories conclude that a company can maximize profits by using

sales promotion. Such promotions can permit price discrimination by allowing the brand

to compete in two or more market segments. Sales promotion may allow a premium

brand to compete with a lower tier brand among price sensitive consumers. For example,

a premium brand of toilet soap may be on promotion in some price sensitive markets,

while in the remaining markets it is sold at its normal price.\

INTRODUCING AN ELEMENT OF INTEREST:

There are a number of promotions which are often called interest promotions. Some of

the more popular interest promotion techniques are samples, contests, and sweepstakes,

free premiums and mail-in premiums. These promotions create an element of interest and

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excitement, and consumers enjoy these and response enthusiastically to such contests and

sweepstakes, etc.

IMPULSE BUYING IS INCREASING:

The number of marginal customers is increasing. Displays at the point of purchase lead to

impulse buying by consumers, more so if the items on the display are not expensive.

There is a popular saying in Hindi “ jo dikhta hai, voh bikta hai.”

This strategy is followed by soft drink majors like Pepsi and Coke on a large scale. They

pay huge sums of money to keep their products in front so that they are visible. These are

also known as display promotions.

SALES PROMOTION SPECIALISTS ARE AVAILABLE:

As a result of economic liberalization, the number of management institutions has

increased. This has lead to the availability of specialists, who are not only well paid but

can handle this specialized work more efficiently in the current market conditions, where

sales promotion has become more important.

EXCESS STOCKS:

Because of increasing number of brands, it is difficult for manufacturers and dealers to

anticipate future sales. This, at times, leads to excessive inventories, and the quickest way

to clear that is to go for sales promotion.

Footwear companies like Bata, Woodland, etc regularly offer around 50% discount on

their products.

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PULL AND PUSH STRATEGIES OF SALES

PROMOTIONS

Sales promotion decisions are significantly affected by whether the company decides to

do to pull or push strategies to accomplish its objectives. Such a decision may require a

little or a lot of cooperation from resellers. The requirements to implement one strategy

might be little more than to just stock the product by the retailers. The other strategy may

demand more participation from resellers such as the ability to explain to the consumers

as to how a product works.

In case of using a pull strategy, marketing efforts are directed at the ultimate consumer

and consumer promotions such as consumer contests and sweepstakes, rebates, coupons,

free samples, consumer premiums, etc are used. If this strategy is also chosen to include

advertising, there are large advertising expenditures. The objective of such promotional

efforts would be to create sufficient consumer demand to pull the product through the

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channels that is the consumers are encouraged to demand the product from retailers who

in turn place orders with wholesaler or manufacturer to meet the consumer demand.

PULL:

Flow of demand Flow of promotion:Sales promotionAnd advertising

This strategy may require little promotional efforts from the resellers except to stock

input the product on shelves.

A pull strategy is appropriate when:

The product demand as high.

It is possible to differentiate the product on the basis of real or emotional features,

Brand consumers show high degree of involvement in the product purchase,

There is reasonably highly brand loyalty and consumers make brand choice decisions

before they go to the store.

PUSH:

If a firm decides to use push strategy, its efforts are directed at resellers and the

manufacturer becomes very dependent on their personal selling abilities efforts. The

promotional efforts are focused at pushing the product through the distribution channels;

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Manufacturer

Wholesaler

Retailer

Consumer


the resellers may be required to display, demonstrate and offer discounts, to sell the

product. The communication to resellers is generally through trade circulars or the sales

force.

PUSH:

Flow of demand Flow of promotion:

Trade deals advertising

Personal selling

Push strategies generally appropriate for product categories where there is low brand

loyalty and many acceptable substitutes are available in the market. Ti may also be

suitable for relatively new products or when the brand choice is often made in response to

displays in the stores, the product purchased is unplanned or on impulse and the

consumer is familiar and has reasonably adequate knowledge about the product.

Manufacturers, who cannot afford to engage in sustained mass advertising, often use push

strategy and offer effective incentives to dealers. Retailer promotion: Buy Cadbury’s

products worth Rs. 3000/- and get any 30 chocolates worth Rs. 5 each free.

Through this offer the company is pushing its product to the retailers and now that the

retailer has enough incentive the retailer stocks more and thus it becomes essential for the

retailer to push the product to the consumers.

PULL PROMOTIONS

(Manufacturer to

consumer)

PUSH PROMOTIONS

(Offered to trade)

PUSH PROMOTIONS

(Offered by retailer)

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Manufacturer

Wholesaler

Retailer

Consumer


Sampling

Coupons

Price packs

Rebates

Continuity

programs

Contests

Sweepstakes

Tie-in promotion

Financing

incentives

Special events

Premium

Bonus packs

Discounts

Display allowance

Advertising

allowance

Free goods

Contests

Trade coupons

Quantity discounts

Price cut

Free goods

Premiums

Displays

Feature

advertising

Quantity discount

Clearance sale

PRODUCT LIFE CYCLE AND PULL OR PUSH

STRATEGIES:

It is quite important for brand managers to analyze and identify the stage of a particular

brand in its life cycle before deciding about using sales promotion. During the stage of

product introductions, a product requires different sales promotional tactics.

Likewise, during the product growth stage, its maturity and the decline stages, the sales

promotional tactics required are likely to be quite different. Promotional strategies are

also likely to be affected for different non-durable and durable products.

INTRODUCTION STAGE:

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When the product is being introduced, the major objective is to increase the trial rate and

distribution of the product. For increasing trial sampling, coupons, demonstration which

are all pull promotions, can be used. To make the product available in distribution

channels, it may become necessary to use some kind of incentive scheme for the resellers

to encourage them and minimize their risk associating stalking a new product.

Manufacturers can offer display allowances to resellers to make the product highly

visible. There could be liberal guarantees to take back the stocks, if unsold, to reassure

the trader. These are all push promotions. For most new products, it would be difficult to

be successful without pull promotions. In fact when new products are introduced, much

more emphasis is given to pull rather than push promotions.

GROWTH STAGE:

In this stage, the dominant objectives are to expand the market for increasing the number

of new customers who would try the product for the first time and to encourage the repeat

purchase by those who have already the product. Another important objective is to

expand or at least maintain the distribution. For increasing trial, pull promotions are

appropriate however as the trial rate increases free samples become quite an expensive

proposition. To encourage repeat purchase by consumers, in pack or non-pack coupons

can be used. This would also help in converting those customers who have already the

product into regular users of the product. Another tool of sales promotion that can be

used is to offer bonus packs containing additional quantity at the same price as an

incentive to encourage repeat purchase. To expand the distribution, push promotions such

as different types of discounts, free goods that increase the profitability of the trade, can

be used.

This would also help in converting those customers who have already tried the product

into regular users of the product. Another tool of sales promotion that can be used is to

offer bonus packs containing additional quantity at the same price as an incentive to

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encourage repeat purchase. To expand the distribution, push promotions such as different

types of discounts, free goods that increase the profitability of the trade, can be used.

MATURITY STAGE:

When the product is in maturity stage, many similar brands are available to customers.

Due to price discounts or other extra benefits, consumers often switched brands. This

phenomenon of brand switching is more common if the product category happens to be

one of low involvement. The sales promotional strategy in this stage can focus on

attracting maximum number of brand switchers, reward and reinforce the loyalty of

regular users and use more of push promotions to build inventories with resellers. Many

tools of sales promotion such as premiums, price discounts, extra goods, displays, dealer

contests, feature advertising become important.

Generally a combination of pull and push promotions prove more effective during

maturity stage of a product life cycle. The market share of the brand is an important

factor in gaining the support of resellers.

DECLINE STAGE:

Survival of the brand often becomes more important during decline stage. Another

important objective is to maintain distribution. Sales promotions that help in generating

sales volume become quite important. Resellers, in general, are not a tall enthusiastic

about declining brands and for this reason we do not show any kind of interest in

promoting them. Because of this negative factor, manufacturers use pull promotions. In

many cases this becomes a game of endurance for marketers.

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TECHNIQUES OF SALES PROMOTIONS:

CONSUMER MARKET

SALES PROMOTIONS

TRADE SALES

PROMOTIONS

SALES FORCE SALES

PROMOTION

Price discounts Off-invoice allowance Sales contests

Price pack deals Buying allowance Incentives

Rebates/refunds Display and advertising

allowance

Awards and prizes

Continuity programs Buy back allowance Premium (gifts)

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Coupons Bill back allowance Sales meetings

Samples Count and recount

allowance

Training

Contests and sweepstakes Slotting allowance Sales manual etc

Premium and advertising

specialties

Merchandise allowance

Free trials POP allowance

Brand placement Cash rebate

Event sponsorship Free goods

Product warranties Trade coupons

Exchange offers Dealer listing

Internet promotions Dealer loaders

Low interest financing Sales contests

Free service camps Incentives

Sales training programs

Trade shows

CONSUMER SALES PROMOTION:

Sales promotions directed at the end-user, whether by the manufacturer or the retailer, are

called consumer sales promotions. Manufacturer announced promotions to consumers are

based on pull strategy of the manufacturer and retailer announced promotions to

consumers constitute push strategy of the retailer.

Objectives of consumer market sales promotions:

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The following basic objectives can be pursued with sales promotions in the consumer

market.

Stimulate trial purchase:

When a firm wants to attract new user’s sales promotions tools can reduce the

consumer’s risk of trying something new. A reduced price or offer of a rebate may

stimulate trial purchase.

Pantene when it was launched did a lot of sampling, to stimulate trial purchase. Their

efforts have surely shown results, with Pantene being one of the top selling brands in

India today.

Stimulate repeat purchase:

In-package coupons good for the next purchase, or the accumulation of points with repeat

purchases, can keep consumers loyal to a particular brand.

The most prominent frequency programs are found in the airline industry where

competitors try to retain their most lucrative customers by enrolling them for various

perks such as frequent flyers can earn free travel, hotel stays, gifts etc.

Stimulate larger purchases:

Price reductions or two-for-one sales can motivate consumers to stock up on a brand, thus

allowing firms to reduce inventory or increase cash flow.

Many soaps brands are doing sales promotions to stimulate larger purchases.

Introduce a new brand:

Because sales promotions can attract attention and motivate trial purchase, it is

commonly used for new brand introductions.

Cadbury bytes was promoted with Rs 5 off

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Combat or disrupt competitors strategies:

Because sales promotions often motivate consumers to buy in large quantities or try new

brands, they can be used to disrupt competitors marketing strategies. If a firm knows that

one of its competitors is launching a new brand or initiating a new advertising campaign,

a well-timed sales promotions offering deep discounts or extra quantity can disrupt the

competitor strategy. Add to the original discount an in-package coupon for future

purchases, and a marketer can severely compromise competitor’s efforts.

Contribute to Integrated Marketing

Communications:

In conjunction with advertising, direct marketing, public relations and other programs

being carried out by a firm, sales promotion can add yet another type of communication

to the mix. Sales promotions suggest an additional value, with price reductions,

premiums, or a chance to win a prize. This is an additional and different message within

the overall communication effort.

TECHNIQUES OF CONSUMER SALES

PROMOTION:

Price discounts or price-off deals:

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Price deals are probably the most commonly used promotional techniques. A price deal

for a customer means a reduction in the price of the promoted product and the consumer

saves money on purchase.

Boost 500gm packs, Rs 10 off on normal price, now available at Rs. 90 only.

Price discounts are communicated through POP advertising, window displays, sales

people, and advertising in newspapers, magazines and TV ads.

Determining the quantum of discount depends on the consumer’s price perceptions and

may be difficult to decide.

Such promotions works very well in gaining the attention of consumers, particularly at

the point of purchase among similar brands and may also encourage unplanned or

impulse buying. If there are three different models of a product and because of the

discount offered the price of the higher end model is appears, not too high to the

consumer as compared to the lesser priced model, then the consumer may buy the higher

end model.

The main advantage of this tool is that it has a very strong consumer response. Such

discounts offer immediate value and strong consumer response.

The flexibility and convenience of implementation is another advantage. Price offers are

extremely flexible in the sense that the producer has total control on the number of units

being promoted and the market area in which the offer will be given. If different packs of

the same brand are available, the marketer can choose the one size that is not selling well.

A discount offer may rapidly lose its advantage if competitors announce a similar offer.

In fact, competitors are very likely to retaliate leading to the danger of triggering a

promotion wall in which no one benefits except the consumer.

Such discounts are short term and are unlikely to produce any long-term gains because

the incentive is to purchase now by creating sense of urgency. When the discount is

withdrawn the sales may fall below the level of pre-promotion period. And in the long

run the sales would return to pre-promotional period level.

Price pack deals:

Price pack deals are also called value packs.

They can take any of the two forms: one is bonus pack and banded pack.

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In case of a bonus pack, an additional quantity of the same product is offered free when

the standard pack size of the product is purchased at the regular price.

1) Cadbury temptation offers 10% extra free. 200gms + 20gms

2) Boost 500gms jar gives 20% more free

A variation of this offer is when the marketer develops special packs of the product

containing more quality but the proportionately low. This is a method to “load” the

consumer up with the product. This technique is often used to introduce a new large size

of the product or to encourage continued usage and also to increase consumption.

The offer is termed as “banded pack” when two or more units of the products are sold at a

reduced price compared to the regular price.

Another variation of this technique is “buy 1 get 1 free” or some similar offer, it could be

“same for less” or “more for the same”.

The main advantage of this tool is that extra product may encourage increased usage and

help sustain the habit. Also among other similar brands, a bonus pack stands out at the

point of sale.

Refunds and rebates:

Refund is the repayment of total money paid for purchase, while the rebate represents

repayment of only part of the money paid for the purchase. Refund offers seem to work

very well in guaranteeing the trial of a product or service since there is no risk involved

for the customer because of the promise of the total refund of the purchase amount.

Refunds and rebated play an important role in the consumer durable segment because the

product price is reduced to a great extent because of the rebate offer.

Coupon:

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A coupon entitles a buyer to a designated reduction in price for a product or service.

Coupons are the oldest and most widely used form of sales promotions. Coupons bear an

expiry date and cannot be redeemed after the cut off date.

Coupons can be of three types:

Direct to the customer

Media distributed

Product distributed

The main advantage of coupons is:

Encourage brand switching

Stimulate trial for a product

Take off the attention from price

Many companies to create more product trials have coupons in the newspapers and

magazines which avail you some rupees off on three products.

Contests and sweepstakes:

Contests and sweepstakes can draw attention to a brand like no other sales promotions

techniques.

A contest has consumers compete for prizes based on skill or ability. Winners in a contest

are determined by a panel of judges or based on which contestant comes closest to a

predetermined criterion for the contest. Contests tend to be somewhat expensive to

administer because each entry must be judged against winning criteria.

Contests were very often used earlier where people have to write slogans, poems, stories,

etc. generally “I like the product because…..” and the best ones won prizes. But off

lately, contests are becoming less and sweepstakes increasing. People are more willing to

play on luck rather than participative by showing their abilities.

A sweepstakes is a promotion in which winners are determined purely by chance.

Consumers need only to enter their names in the sweepstakes as a criterion for winning.

Some popular types of sweepstakes also use “scratch-off cards”.

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Contests and sweepstakes often create excitement and generate interest for a brand, but

the problems of administering these promotions are substantial.

One problem is that the game itself may become the consumer’s primary focus, while the

brand becomes secondary. The technique thus fails to build long-term affinity for the

brand.

Britannia khao world cup jao has taken the market by a swing.

Under the offer you collect points available on Britannia biscuit packets and exchange

100 points for a scratch card, which were various gifts and the 100 world cup tickets. The

offer was actually introduced during the last world cup and had shown phenomenal

results. Sale increased tremendously; there was an increase in the sales by 25%, claims

the company. So it is being done this year too. This year too the contest is showing good

results.

Sampling:

Getting consumers to simply try a brand can have a powerful effect on future decision-

making. Sampling is a sales promotion technique designed to provide a consumer with an

opportunity to use a brand on a trial basis with little or no risk. Saying that sampling is a

popular technique is an understatement. Sampling is particularly useful for new products,

but should not be reserved for new products alone. It can be used successfully for

established brands with weak market share in specific geographic areas.

Techniques used in sampling:

1) In-store sampling

2) Door-to-door sampling

3) Newspaper sampling

4) On-package sampling

5) Mobile sampling

Trial offers:

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Trial offers have the same goal as sampling – to induce consumer trial use of a brand –

but they are used for more expensive items.

Ex. exercise equipment, appliances, consumer electronics, etc. the expense to the firm of

course can be formidable. Segments chosen for this sales promotion technique must have

high sales potential.

Premiums and advertising specialties:

Premiums:

They are items offered free or at a reduced price, with, the purchase of another item.

Many firms offer a related product free.

There are two options available for the use of premiums:

1) A free premium provides consumers with an item at no cost; the item is included

in the package of the purchase item.

2) A self-liquidating premium requires a consumer to pay most of the cost of the

item received as a premium. In this promotion offer the consumer is required to

send a specified sum of money along with a proof of purchase to claim the

premium.

Premiums have become very common today. Many companies are offering lots and lots

of premiums. The main advantage of premiums is that they offer not only that one

product but also another product, which may influence the customer, a lot to buy the

product, especially if the other product is worth it.

Also new products are given free with established brands to stimulate trial of the new

brand.

Buy a Cadbury Bournvita and get dairy milk worth Rs.10 free.

Advertising specialties

Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens, calendars,

etc.

Advertising specialties have three key elements:

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A message placed on a useful icon, and given to consumers with no obligation.

1) Pepsodent toothpaste 100gm pack get free dental insurance worth Rs.1000, this is a

very effective strategy because it is giving you are the guarantee that nothing can happen

to your teeth. The Rs.1000 insurance speaks a lot for its brand and its product thrust.

2) Buy any Nestle chocolate and get tattoo free.

Many other kids’ products are influence a lot by such specialties especially liked by the

kids like tattoos, masks, tazo, cricket bats, etc. hence products that have such offers sell

more than the other brand available.

Ruffles lays, get free tazo

Rasna, get free Prankies

Continuity/ frequency programs:

In recent years, one of the most popular sales promotion techniques among consumers

has been “frequency programmes”. The main objective of such programmes is

encouraging repeat purchases or repeated visits to particular retail shops. Frequency

programmes offer consumers discounts or free product rewards for repeat purchase or

patronage of the same brand or company.

Brand placement:

Brand placement often referred to, as product placement is the sales promotions

technique of getting a marketers brand featured in movies and television shows. The use

of a brand by actors and actresses or the mere association of the brand with a popular

film/television show can create a positive image and have a huge impact on the sales of a

brand.

Marketers and advertisers used to think that brand placements affected only consumer’s

perceptions of a brand, much like advertising. But recent brand placements have shown

that the technique can have a sales impact like a traditional sales promotion.

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Brand placement has varying results; if the brand name is spoken aloud the impact can

be dramatic but less obvious placements, referred to as background placements are

considered by some as a waste of money.

1) Coke in Yaadein, Pepsi in Khushi

2) Pass Pas in Yaadein

Event sponsorship:

1) When a firm sponsors or co-sponsors an event such as a rock concert, a cricket

match, etc. the brand featured in an event immediately gains credibility with event

audience. The audience attending an event already has a positive attitude and

affinity for the contest – they choose to attend.

Exchange offers:

If a family bought a refrigerator 10years ago and the machine is still giving reasonable

service then the family is unlikely to buy a newer and more advanced version of the

refrigerator unless they get rid of the older one by selling it to someone. No one in our

country is prepared to throw it as junk. Same thing is true for a number of products such

as televisions, microwave ovens, washing machines, cars, two-wheelers, computers, etc.

this segment of present owners is sizeable enough yet to sell new brands to those who

already own a similar product is not easy. To attract this segment, manufacturers

regularly announce exchange offers.

Consumer durables market is the one where exchange offers are used the most. Almost

all the TVs, Refrigerators, Washing Machines, etc. have exchange offers.

Internet promotions :

They are the most recent form of sales promotions. They are promotions that are done via

the internet. It is becoming increasingly popular because of the large use of internet. But

still it has a lot to develop.

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RULES FOR SALES PROMOTION AS LED BY ICC

INTERNATIONAL CODE OF SALES PROMOTION

ICC International code of sales promotion

ICC International code of sales promotion in its article 8 state the sales promotions

addressed to or likely to influence, children and young people should be so framed as not

to take advantage of their natural credulity or lack of experience. Furthermore such

promotions should be so framed as not to harm children or young people mentally,

morally or physically, nor to strain their sense of loyalty vis-à-vis their parents or

guardians.

Sales promotions addressed to or likely to attract children:

1) Should be designed and conducted in a way that will not cause physical, mental or

moral harm to children;

2) Should not odder promotional products that are unsuitable for distribution to

children;

3) Should not encourage children to enter into unsafe situations or strange places or

talk to strangers e.g. for the purpose of making collections or accumulating labels,

wrappers or coupons;

4) Should make it clear that parental permission is required if prizes and incentives

might cause conflict between children and their parents; examples include animals,

bicycles, outings, concerts and holidays.

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McDonald

“KIDS ARE NO LONGER PASSIVE MEMBERS OF THE FAMILY”

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McDonald’s India, which opened its first restaurant in India in October 1996, has

virtually spearheaded the ‘burger revolution’ in the country. Here, how McDonald’s has

endeared itself to children.

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The first commercial talked about the kid in two different environments – a formal school

function where he forgets his lines and a friendly McDonald’s environment where the

lines spontaneously come out the kid. In another commercial how the dad and mom plan

a surprise for the kids who are sad about leaving their old place of residence. And the

surprise is in the form of a ‘friendly’ McDonald’s outlet bang opposite their new home.

Well we all agree that kids today are no longer passive members of the family. Those

times when a child would sit back and obey every single order of his or her parents have

gone by. Toda, they take active part in decision-making and have become friendlier to

their parents. This is largely true of decisions across the board – from restaurant to go to

or the car and house that the family buys.

McDonald’s world over, has been a favorite eating out experience for childrens. It has

been a conscious strategy on the part of McDonald’s to make children feel special at their

restaurants. What has, of course, helped us is that McDonald’s is the most friendly

restaurant chain in the world and in India. Today, children are an essential part of the

family decision making process – the family in taking decisions for the home and the

family takes their likes and dislikes into account.

Several factors have gone a long way in making restaurants the favorite of kids. The most

important experience that McDonald’s provide is that their outlets is friendly and

completely hassle – free and that has endeared us to the child in each one of our

customers. McDonalds have taken special care to see that the architecture and décor of

their restaurants are children friendly. There are special chairs and tables for kids in all

McDonald restaurants. Most of the McDonalds restaurants have separate play areas for

children. Their crew members are also trained to make the experience memorable for the

kids. Even all their tables, chairs, stairs, have rounded edges to prevent any kind of injury

to the kids. Their innovative birthday party packages have been a great hit with the kids.

Their icon Ronald McDonald is a great favorite of kids worldwide as well as in India.

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What McDonalds learn from Indian kids is that if you give them a friendly, warm, hassle-

free experience, they are bound to come. Combine that with nutritious, wholesome food

and the recipe for success. The McDonald’s core value of QSCV (quality, service,

cleanliness and value) has worked successfully everywhere and proved to be the winning

formula for McDonald’s in India as well.

McDonald’s goes with pull strategy in India where they have various promotions like

giving free gifts, they give toys with their product called happy meal. McDonald’s has

being using everything from plastic toys resembling cartoon characters to soft toys to

promote itself. The effort can be said to be grand success considering the queue of

children outside its various outlets. McDonald’s have contest for children from time to

time. It recently had a promotion of consumer premium that is it gave a coupon with 20%

of on next meal or a soft serve free with next purchase. McDonalds distributes coupons at

various college and school campus.

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CHOCOLATES AND CONFECTIONERIES:

CADBURY:

Cadbury India began its operations as a trading concern in 1947. Cadbury in the Indian

subcontinent defines the first taste of chocolate. Ever since Cadbury chocolates were

launched in India it has been ruling the heart of Indian child. Cadbury the name every

child has in his mind when you talk about chocolates in India.

In the chocolates products like diary milk, five stars, perk etc. Cadbury offer direct price

pack deal for example 20% extra chocolate with, in these offer children get 20% extra

chocolate at same price.

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It also offers a price discount and price off deal for example a family pack of chocolates

like perk, five star, and dairy milk at a discounted price. Cadbury als0o had printed

coupon in local newspaper and the promotion was that the 10 rupees chocolate would

cost five rupees on exchange of that newspaper coupon.

Talking about contest Cadbury had various contest for children, in one of its contest in

which the children had to collect the wrappers of chocolates of rupees 10 or more and

with every 10 wrappers returned they gave various gifts, the more number of wrapper the

more big was the gift they had given gifts like animal masks, sun glasses, watches, and

cameras too. The other contest was that the children had to complete the line why they

like the Cadbury chocolates…………………..

The best answer had been gifted with hampers. Cadbury also gifted pens, pocket

calendars, caps, t-shirts etc as consolation prizes. Internet promotions are one of the new

innovative promotions by Cadbury; you can play different game on with different

chocolates of Cadbury.

In the small value chocolates like éclairs and gems Cadbury has time to time promotions;

the recent jadoo card offer by Cadbury was rocking among the children. In this offer

Cadbury gave a free JADOO card with two éclairs, the card had a picture of animal

which could not be seen in first look and that why it was called JADOO card.

Gems the favorite chocolate pill between children have something to offer for children,

before when it was packed in rectangular card box it had a puzzle game printed on it, it

also offered free James bond and bugs and bunny stickers with it. Now gems are packed

in cylindrical plastic tin with a cricket game on its lid. Cadbury always has a promotion

going on with one or the other brand of chocolate.

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NESTLE:

Nestle the other company manufacturing chocolates brands in India. It has a product line

like milky bar, bar one, munch kit Kat etc. nestle chocolate also various among the Indian

children especially Kit Kat the one of its kind wafer chocolate.

Nestle also conducts various sales promotions, they also price discounts and price off

deal in which more chocolate at same price. They also have price pack offer where in

they give 10-20% extra chocolate. It also altered the price pack deal by giving one for

one free pack. Nestle also arranged competitions in schools for which they gifted with

nestle gifted hampers.

Nestle Kit Kat the favorite chocolate among the children had “yoyo” free with it. Yoyo is

a circular object that is tied to a thread and we can spin it up a down with a thread.

HEALTH DRINKS:

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CADBURY BOURNVITA:

Cadbury tries to promote its product with both pull and push strategies. Pull strategy is

mainly in health drink product that is Bournvita. With Bournvita Cadbury offered variety

of gift time to time, it had given various gifts like Bournvita sun glasses, watches, balls,

rackets etc. recently it had started giving the new toy BEYBLADES to children with the

new Bournvita jar and refill pack.

The best pull strategy to promote sale was through the Bournvita book of knowledge.

Bournvita advertising claim “BROUGHT UP RIGHT BOURNVITA BRIGHT” was

supported by a very popular TV programme, the ‘Bournvita Quiz Contest’. This was an

inter school quiz involving participation from schools in Mumbai, Delhi, Calcutta and

Chennai. It was broad caste fro lot of audience interest and involvement, particularly

among children and other members of the family.

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The Bournvita “BOOK OF KNOWLEDGE”

OBJECTIVE:

To enhance the brand image of Bournvita by supporting the main advertising proposition

of the brand: ‘Brought up Right-Bournvita Bright’, thus building an enduring consumer

group for the brand. The promotion consumers sending in two proofs of purchase from

any size of Bournvita were offered FREE the Bournvita Book of Knowledge, a

compendium of questions and answers from the Bournvita Quiz Contest.

RESULTS:

Demand fro the Bournvita Book of Knowledge was so great that a substantial reprint was

required. Market research indicated very recall and a linkage in the public’s mind

between Bournvita, the Quiz Contest, and the Book of Knowledge, ranging from 49% in

Delhi to 66% in Madras. The schemes was therefore continued in subsequent years, with

further annual compendiums of questions and answers, slight modifications being made

to these later volumes of the Bournvita Book of Knowledge in the light of experience.

Over a quarter of a million books have been sent out over the years. Bournvita’s brand

share increased by 3% points in each of the first years of this promotional programme.

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Scores for the number of consumers buying only Bournvita and no other competitive

brand solidified to 46% in Calcutta, and went as high as 68% in Delhi.

COMMENT:

This is a first class example of sales promotion being used successfully in a strategic role.

‘Strategic’ as opposed to ‘tactical’ in the sense that the programme ran over a lengthy

period of time, several years. It was not just a quick in-and-out tactical operation

designed to solve a particular problem or exploit a specific opportunity that had arisen in

the short term. ‘Strategic’ too in that the Book of Knowledge was integrally related to the

Bournvita Quiz Contest and in turn to the advertising proposition: ‘Brought up Right-

Bournvita Bright’. The promotional programme thus supported the central thrust of the

brand’s marketing strategy. It took the fleeting words of the radio programmes and

bestowed upon them a physical, tangible, permanent dimension in the form of the Book.

It continued to communicate the brand proposition to consumers in their homes in

between broadcasts of the Quiz Contest. It linked this popular programme firmly to the

purchase of Bournvita by requiring two proofs of purchase to obtain the Book.

41


BOOST:

Boost is an energy drink which is very much favorite of children. Boost became favorite

after they contracted Sachin Tendulkar & M.S.Dhoni to act in it commercial saying that

‘boost is the secret of are energy’. As the cricketer was very famous among the children

everybody wanted to be like him. A wide ranging review of the brand and its competition

nonetheless indicated that the positioning of Boost as an energy drink for children was

correct. In depth qualitative research confirmed the strength of the advertising which has

used the theme of trains to communicate the proposition: ‘boost: the energy fuel for an

active life. Taken regularly it helps to improve both physical and mental energy’. Boost

came up with giving Sachin autographed miniature bat with it.

The famous Boost train picture card promotion

OBJECTIVE:

To enhance brand equity by supporting theme advertising, and there by increasing brand

loyalty which would automatically result in increased sales.

THE PROMOTION:

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One of a series of 12 colored picture cards was packed FREE in every 500gm pack of

Boost (the larger of two sizes) throughout the six-month promotional period. These

picture cards illustrated famous trains from the history of railways around the world. The

cards were contained in polythene pouches, 10cm * 6.7cm, sealed on all sides. Four

different picture cards were made available in packs in each of the first three months of

the promotion, and the process was repeated in the second three months to give the

consumer a further opportunity to collect all 12 cards. All 500gm packs were flashed on

the front with the announcement of the promotion, referring the consumer for full details

to the back of the label in the case of the 500gm jar, and to the back of the pack in the

case of the 500gm refill pack.

Each picture card had a tear-off strip on its right hand side, printed with a number from 1

to 12. Sending in two of these strips qualified the consumer to receive, FREE, an album

with spaces in which to paste the picture cards. The album contained much additional

background information on, for example, the early history of trains; the expansion of

railways round the world; the beginnings of underground railways; the advent of diesel

and electric traction; the development of commuter services; great railway men; railways

in India; unusual facts; glossary of railway terms; the future of trains etc.

The album also contained a page with spaces for six further tear-off strips from the

picture cards to be pasted down. No duplicates were allowed – the strips had to carry six

different numbers from six different cards (these numbers corresponding to the numbered

spaces allocated in the album to the picture cards themselves). The first 100 consumers to

mail in this page containing the six strips would win a prize of an expensive electric train

set.

RESULTS:

Against a target increase in sales of 12.5% during the six month promotional period, sales

increased by 16.6%. Against an estimate of 22,000 applications for the album, 61,147

were applied for. This represented almost exactly 10% of the 500gm packs sold during

the six months being redeemed for albums. Almost one quarter of households buying

Boost obtained an album. 4,020 entries were received for the electric train set. As a good

will gesture HMM increased the number of train sets awarded from 100 to 30.

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Both trade and consumer feedback on the promotion was extremely positive. Many

children, as well as parents, wrote in expressing their appreciation of the offer. Market

research conducted at the end of the promotion reported that it was regarded very

favorable by mothers, who liked its educational aspect. It was the type of promotion they

encouraged their children to participate in.

COMMENT:

Picture cards inserted FREE in a pack is a classic collection technique when children are

the consumers but their mothers are the purchasers. By giving the picture cards an

educational character the mother is encouraged to pass them on to her child, and in turn

child encourages the mother to make further purchases of the brand offering the picture

cards – rather than a competitive brand – in order to obtain further cards in the series.

The number of different picture cards in the series should not be greater than it is

reasonable for a child to collect from his mother’s purchases during the period of the

promotion, though allowance can be made for the swapping of duplicate cards among

school friends. An activity which can give additional word of mouth currency to the

promotion: some children seeing their friends showing off and swapping these treasured

cards return home and ask their mothers to buy Boost next time, instead of her normal

brand. They want to be in on this new collection craze too! An album in which to insert

the picture cards is a great stimulus to collection. As soon as the first card is stuck down,

the remaining spaces look very blank indeed – they cry out to be filled! Boost was

therefore right in making the album readily available, FREE, in return for only 2 proofs

of purchase. The high rate of participation at all levels of the promotion proved the appeal

of trains as a subject, in the various ways it was treated in both the picture cards and the

album. Best of the entire train theme continued and extended the message of Boost’s

advertising campaign. This new method of sales promotion was not an abandoning of all

the careful marketing effort that had been put behind the brand previously, it was simply

a new and imp active expression and execution of all that Boost had been saying about

itself since its launch.

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BRITANNIA:

Biscuits are something that doesn’t need an introduction as such. Almost every family in

India starts with the day with tea and biscuits in India. Selling biscuits in such market is

very herculean task for the company. Along with the major competitor in this segment

are Parle and Britannia there is a huge unorganized competition. Britannia has a variety

of brands of biscuits which are favorites of children. The biscuits cannot be sold merely

by trading with wholesalers and retailers; it requires directly winning the heart of

consumers mainly children. This requires a lot of advertisement and promotional

activities to be carried on with the actual selling process.

The market’s domination by Britannia’s premium varieties is quite significant. In last two

years, the company has also stepped up investments on products and brands to further

strengthen its hold over the market. Product innovation, involving the launch of brands

such as Tiger in the lower-end, Chekkers, JimJam, several varieties of the Cream Treat

brand, has been made by Britannia. Advertisement initiatives dovetailing with such

events as the World Cup, or with the holiday season, have helped the company maintain

its business edge.

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The role of promotions for Britannia is especially important in this highly fragmented and

competitive market. Today, the company prides itself on communication that is

innovative, yet constantly able to strike a chord in the consumers’ hearts and minds.

Britannia’s promotions have virtually redefined consumer expectations from this

category.

Britannia uses both pull and push strategies.

There most successful pull strategy to promote sales was the “Britannia khao, World cup

jao” and the Lagaan cricket match. To reach out to the Indian consumer, Britannia has

successfully leveraged India’s two prime passions – cricket and movies. Britannia

addressed these platforms in a manner true to its unique innovative style. It capitalized on

every Indian children’s dream to watch a cricket World Cup match and created the

“Britannia Khao, World Cup Jao” contest in 1999. It based itself on instant gratification.

The entire consumer needed to do was buy packs of Britannia biscuits, scratch a lucky

card and win an all-expenses paid trip to England to watch a World Cup match. This

promotion was so successful that it set a trend that has got every company scrambling for

tickets to take their consumers for the World Cup.

This promotion was repeated successfully in 2002-2003 with the destination of choice

being South Africa. Taking the success further was the promotion of “Britannia Khao,

Cricketer Ban Jao” that was fuelled by the need of every Indian to be a part of the passion

called cricket.

Britannia followed it up with another unique promotion, a vehicle that dealt with Indian

children other passion-movies. A promotion called “Britannia Lagaan Match” that

revolved around a movie called Lagan was based on a cricket match. This promotion

gave the children a chance to interact with the film stars and also get to play cricket with

them. The match had over forty thousand spectators and made the headline of leading

newspapers and news channels.

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Britannia promotions have proved to the marketing world that promotions per sector need

not be only tactical but could also be strategic – used as tool to further brand equity.

Britannia had an offer of collecting wrapper of biscuits and collecting it back for gift, and

also uses its Tiger mascot to promote the product. The recent promotion with the tiger

biscuits is that children get free tiger scales, labels and stickers. Britannia “cream treat”

another brand of Britannia biscuits is also one of the favorite among the children. The

company recently offered a white marble free with every pack of Britannia treat. The

marble has a caricature of Indian Cricketer printed on it, an innovative conversion of

craze for cricket and cricketing stars exploited with a fresh perspective. Though marbles

are played at every nook and corner of India, they were never seen as an exciting and

happening game. The inclusion of the cricket factor has added an adrenaline push to this

game. The inclusion of cricket factor is sure to boost the popularity of this game. The

inclusion of cricketing personalities has also made them a collector’s item among young

children. An excellent example of what a fresh perspective could do to a small product

like marble never seen as something very special among children. Britannia gave free

cartoon sticker with the 200gm pack and now they are giving a free card toys with it.

Britannia also uses a lot off push strategy to promote sales. They provide a discount and

allowance to the retailer and wholesaler so s to attract children to buy their product. They

arrange a window display competition to attract retailers to buy more from Britannia.

47


CAMLIN:

Camlin – art material and writing instruments. Virtually every artist and schoolgoer in

India knows Camlin’s products well. Its art materials and geometry set may be most

prominent, but they are a small part of a 200 product portfolio that caters to a wide

market that ranges from housewives to executives.

These products are sold through a nationwide distribution network that has 350

distributors and 30000 retail, outlets. They can introduce a new product in every corner of

the country in 15 days.

The current earnings per share of the company, which had sales of Rs 131 crore in 1997-

1998, is close to Rs 10, almost doubling during the course of the year. The company

expects writing instruments and engineering and technical instruments to be major

growth areas, with rising education and literacy.

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Camlin’s promotional activity has tended to focus on developing the brand awareness

early they promote drawing and painting as that plays a major role in a child’s

development. Every year they organize a national level drawing competition for children.

There were 2.5 million participants in the 2004 competition. This year, Camlin has

increased its advertising budget, which was quite insignificant so far. Camlin faces

competition from the unorganized sector, but they brushes it aside saying it was always

there, it will always be there, but will never pose a threat.

Camlin promotes with both pull and push strategy but it focus more on pull strategy.

Every child knows the name of Camlin product before he learns to write. Camlin

provides a full compass box with the purchase of pencil box i.e. it give eraser and

sharpener free with pencil box. They also give free paintbrush with the pastel colours.

Along with the national level painting competition it sponsors various school

competitions.

49


CARTOON NETWORK, FRITO – LAY LAUNCHES

“CUBI-TAZO” PROMOTION:

Potato chips or wafers are one of the most popular snack items consumed in almost all

the parts of India.

Today almost every child’s favorite snack is Lays and Cheetos. The main reason for this

is the passion for cartoons in the children. Almost every child love to watch cartoon and

collect games stickers and everything what has a cartoon picture on it. Frito lays has read

the mind of Indian child and very tactfully arranged its sales promotion by giving free

gifts with its chips. Frito Lays along with half-a-dozen other brands are exploring the

possibility of launching promotions centered on Beyblades. It started with the fun strip

with stories of cartoon on it then the stickers of cartoons. Cartoon Network and Frito –

50


lay has entered into promotional licensing deal, where kids can collect exclusive Cubi-

Tazos featuring Scooby-Doo with purchase of either a Cheetos or an Uncle chips pack.

Every 9th child out of 10 had collection of tazos. Tazos promotion by Frito lays lasted for

more than a year.

With over 24 different Scooby designs, kids can start their own collections. Children can

use their imagination and fashion the Cubi-Tazos into various shapes and designs by

simply connecting them. TV commercials, posters and leaflets will support this.

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POKEMON FEVER:

Then came the Pokemon fever in India. They are strange creatures with amazing magical

powers. They have weird names like Pikachu, Weedle and Zubat, and they exercise their

powers on children between the age of 6 and 14.

They can be seen on the back of every thing from cards to interactive toys to books,

DVDs movies and a range of other products. Pokemon fever which has already swept the

globe, generating worldwide, and it isn’t toyshops, grocery shops are selling products like

Cheetos and other confectionaries giving Pokemon tazos stickers and Pokemon cards that

are making them the hottest munch in town.

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But Pokemon isn’t the only cartoon power brand which has caught the fancy of the

marketing gurus of modern India. There are numerous other licensing companies which

are capitalizing on the demands of a new generation of pester power kids.

After Pokemon cards, it is now time for Beyblades. And like Pokemon cards, which

became a range after the cartoon characters. Beyblades are the next best thing to hit

young minds. Collecting this became a hobby for the kids.

Almost all the companies are trying to use cartoon character to sell their products. Frito

lays is one such company, which is using this cartoon characters for sales promotion.

They started with giving free fun strips with its chips which had various funny stories

written on it. Then it was the Tazo fever that was injected by Frito lays in the children’s

mind, almost every child had his own collections of tazos, which are like an asset to

them. And now it’s the Pokemon cards and Beyblades the cartoon character which is

making the children cry for the Frito lays products.

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SUGGESTIONS:

A sales promotion should not exploit the loyalty, credulity, vulnerability or lack of

experience of children:

They should not be made to feel inferior or unpopular for not buying a particular

product.

They should not be made to feel that they are lacking in courage, duty or loyalty if

they do not buy or do not encourage others to buy the product.

They should not be asked to disclose personal information about themselves or their

families with out having first obtained permission from their parents or guardians.

Promotions should not undermine the authority, responsibility or judgment of

parents and guardians. Promotions should not include any appeal to children to

persuade their parents or other adults to buy advertised products for them.

A product that is part of a series should be clearly indicated as such and should

include the method of acquiring the series.

Innovation should be there in the promotion strategy to survive in the competitive

market but the new concepts should be well informative to children.

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CONCLUSION:

In today’s time with the recession in the market continuing, the companies see promotion

as being immensely helpful in sustaining them in this tough period. Given the intense

competition that characterizes today’s markets as well as media clutter, no brand can

afford ignore to promotions. In fact, 30% of TV advertising is accounted for by the

consumer promotion advertisements. Hence, the verdict is clear; the Indian customer

wants more tangible benefits for his money rather than just hot air. So in order gain

competitive advantage over their rivals, companies are better advised to develop suitable

promotions for their customers rather than just relying on advertising. What is required

today while designing promotions is a strategic focus? The promotion must be focused

properly with the other elements of the marketing mix. If designed and implemented

properly promotions would become yet another weapon in the Brand manager’s armory

for brand building.

From the company’s point of view this is not a quick fix solution. Another point that

must be understood is that we cannot see sales promotion in complete isolation.

Promotions cannot be used for brand building for any reasonable length of time. Towards

the end one should understand the ways in which the promotions affect the facets of the

brand. The company should lay down the objectives, which it wants to achieve from the

promotion. Once the objectives are in place they can design the promotion strategy. One

more important aspect that comes about promotions is that most of the promotions lack

innovation. This seems to be the single most important reason for the success behind any

promotion strategy. Companies must come out with new strategies for promotions and

dare to be innovative.

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BIBLIOGRAPHY:

1) Marketing management ………….by Christopher lovelock

WEBLIOGRAPHY:

1) www.google.com

2) www.yahoo.com

3) www.marketresearch.com

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http://www.marketresearch.com/

http://www.yahoo.com/

http://www.google.com/

100 Mks Project

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