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.