Below the Line Promotion
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Transcript of Below the Line Promotion
Below The Line Promotion
Topic :
Is in shop sales promotion is useful??
By Archana Singh
Roll No. 12
Agenda for Today
Introduction to in store Sales Promotion
Types of Sales Promotion
Sales promotion vs advertising
Importance and risk involved in Sales promotion
Point of purchase advertising
Examples of Successful in store promotions
Conclusion
Definition:
any activity or material used as a direct inducement to purchase at the store.
Objective: Bolster/complement other promotional mix elements during a specific time period
Introduction
Sales promotion plays a key strategic role in the channel of distribution
• Big name brands need to supported with sales promotion and POP in order to get the support of retailers through self space allocation.
• The top 10 retailers control 43 percent of all packaged goods sales so they are in a position to dictate which brands get how much shelf space.
• Brand marketers are spending heavily--$30 billion a year—on sales promotion and POP to gain favored retailer treatment and provide incentives to household consumers and buiseness buyers
Sales PromotionUsing incentives to create a perception
of greater brand value
• Consumer Market
– Induce household consumers to purchase a firm’s brand
• Trade-Market
– Motivate distributors, wholesalers, and retailers to stock and feature a brand
• Business Buyer
– Cultivate buyers in large corporations
Types of Sales promotion Coupons
Price-off deals
Premiums
Contests
Sampling
Sweepstakes
Brand placements
Incentives
Loyalty Programs
Trade Shows
Gift Cards Allowances
Sales Promotion vs.Advertising
Short term demand vs. long term demand
• Encourage brand switching vs. brand loyalty
• Induce trial use vs. encourage repeat purchase
• Promote price vs. promote image
• Immediate results vs. long term effects
• Measurable results vs. difficult to measure
Importance of SalesPromotion
• Growth rate: 4-8 percent
• Reasons for growth:
– Demand for accountability
– Short-term orientation
– Consumer response to promotions
– Proliferation of brands
– Increased power of retailer
– Media clutter
Risks of Sales Promotion
• Create a price orientation
• Borrow from future sales
• Alienate consumers
• Time and expense
• Legal considerations
P-O-P/ In store Advertising
1. Materials used in the retail setting to attract shoppers’
attention to a brand, to convey primary product
benefits, or highlight pricing information.
2. Objectives for Point-of-Purchase Advertising
• Draw consumers’ attention to a brand in the retail
setting.
• Maintain purchase loyalty among brand loyal users.
• Stimulate increased or varied usage of the brand.
• Stimulate trial use by users of competitive brands
Research results in Hong Kong by MVA
(I) Interest level towards sales promotion tools in general
(II) Retail Purchasing Pattern
1. Frequency of purchase
2. Spending
(III) Usage of and Perception towards Sales Promotion Tools
1. Frequency of enjoying sales promotion
2. Interest level towards sales promotion tools
Research results in Hong Kong by MVA
(IV) Behavioral Responses towards Sales Promotion Tools
1. Increase the quantity of usually-purchased products
2. Switch to other brands which consumers do not regularly buy
3. Purchase additional products which consumers have not planned to buy originally
McDonald
FAST food chain McDonald's has posted a rise in sales on the back of a successful store-based promotion.
McDonald’s Printable Coupons
McDonald's Coffee Loyalty Scheme 2011 ("Scheme")
Happy Family contest
Major Players in Apparel Retail
Shopper’s Stop: K. Raheja group of companies founded Shoppers' Stop on October 27, 1991.
Westside: Tata Group founded Trent Ltd. (Westside) in 1998.
Lifestyle International Pvt. Ltd.: Lifestyle is an international fashion store of the Landmark Group, a Dubai-based company. Lifestyle created a revolution in the Indian Retail Industry by bringing truly international shopping experience.
Globus: Globus was launched in 1998 as a part of the Rajan Raheja Group.
Wills Lifestyle: ITC has made a presence in the Retail sector through its exclusive specialty store -'Wills Lifestyle'.
Pantaloon Retail (India)
Pantaloon Retail (India) Limited, owned by Mr Kishore Biyani is a large Indian retailer, which is part of the Future Group and operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market.
The company’s brands include Pantaloons, a chain of fashion outlets, Big Bazaar, a hypermarket chain and Food Bazaar, a supermarket chain. Some of the company's other regional brands include, Depot, Shoe Factory, Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment.
Pantaloons
Pantaloons End of Season Sale - Upto 50% Off
Price off offer
Discounts
End of season sale
Festive offer
Discount coupon
Gift voucher
Pantaloon loyalty programme
Seasonal and festive offers
End of season and new year offers
Discount coupons and customer loyalty programmes
Big Bazaar
Outlets in around 60 locations across India. Sells furniture, electronics, clothes, cookware,
cosmetics, household items, food, gifts, jewelry, and books.
Also has special Food Bazaar outlets. Most stores open from 10 a.m. until 9.30-10 p.m. daily. First outlet opened in Kolkata in late 2001, the Big
Bazaar has spread to towns and cities at an alarming rate.
It's been especially designed to appeal to the Indian consumer.
Big Bazar
With a slogan of "Is se sasta aur accha kahin nahi!" ("Nowhere cheaper or better than this!"), the Big Bazaar targets itself directly at the average Indian's love of following the crowd and scrambling for a good discount.
Promotions such as"Sabse Saste Teen Din" (Cheapest Three Days) and "Purana Do, Naya Lo" (Give Old, Take New)
Conclusion
Devising right in store promotional campaign by considering the market trends can lead to large commercial success
Promotions should also focus on increasing the loyalty of customers.
Display of sales promotion in-store is also very important. It should allure customer to buy product.
In-store sales promotion should be provided in specific period and place to enhance its effectiveness.