Effective Sales Promotion Techniques
What is Sales Promotion
Media and the Non-Media Marketing pressure applied for a pre-determined, limited period of time at the level of the consumer, the retailer or the wholesaler in order to stimulate trial, increase consumer demand or improve product availability.
- American Marketing Association
Sales Promotion Types
Consumer
Price Differential
Coupons Refunds/Rebates Price – pack deals Price deals
Value Promotion
Freebies/Free gifts Samples Contests/
Sweepstakes
Trade
Buying Allowances Free merchandise Allowances Cooperative ads Push money Dealers sales
contests
Sales Force
Target Incentives
Bonus Contests Sales Rallies
Contests
HLL’s Vijeyta Point System
• Points associated with every HLL product sold
• Annual regional comparison of the total points collected by a retailer.
• Gift for the winner
TVS Scooty was provided last year
Industry: FMCG
Factory Depot
Wholesaler
Retail Showroom
Shop Counter
Customer
Retail Showroom
Sales Chain
FMCG: Consumer Promotion
Consumer Promotion: FMCG
Samples
Amul Celebration
• Samples of overstock/undersold products distributed across the state on a particular day of a week.
(Region wise)
•Consumer educated on the use of the products
Freebies
Amar Toothpaste
Dental Insurance Policy free with every toothpaste (Sep’02)
Partnered with Tata AIG, Cover of Rs. 25,000
Very successful offer, a large market share cornered
Forced HLL (Pepsodent) to offer the same incentive
Source : www.magindia.com
Sweepstakes
“Britannia khao, world cup jao”
Launched on: 1st Feb 1999
Source: buiness today
Britannia cricket booklet
RunsWrappers
TRIP TO WORLD
CUP
6.4 crores empty packets exchange Sales - 20% increase during Feb-Apr Total Sales Rs. 260 crores Highest promotion recall during the world
cup(53% according to NFO MBL survey)
Impact
A contest running on a scratch off calender just like an instant lottery ticket
Contest with display
Cost effective method of sales promotion
Bru
HLL: Organics
Failure of “Buy One Get One” offer:After launch, they promoted n were not able to
compete with Pantene
Success in “Contest” Promotion : Conducted in new outlets “Bookstores” and
given Organics gift hamper Educated Consumers High Brand Recall
Trade Promotion: FMCG
Display Jo Dikhta Hai Wo Biktaa Hai… GSK Pays Rs. 500/
Month to retailers for hiring a window for Horlicks and Boost etc.
ITC pays Rs. 500/ Month to retailers for hiring a window for Ashirwaad Atta
ITC at Panwalla shops:
Minto candies worth Rs.500/- month were provided for a cigarette board display
Dealer loader
HLL for Rural Markets
Wheel In Haat, provides
incentive to sellers Sales boost up 5
times
Dealer Spiffs
Toothpaste (Rs5)
Provides Insurance policy to employees of Retailers for 2 yrs.
Premium and 6 installments paid by HLL
Perfetti’s Sales Strategy
Perfetti has divided its SKU’s into three different Sales Forces P1, P2 & P3
All 3 divisions cater to the same markets
For e.g. the 3 variants of Mentos are divided in these 3 Divisions
Perfetti’s Cross Selling
Chatar Patar, a lesser demanded product, is cross sold with Creamfills, a higher selling Product offering a discount on the combined package
Result: increase in the sales of Chatar Patar
Retail Industry
Pantaloon: Food Bazaar
Flooded with Consumer Promotions
Sales Force Incentives also very good
Trade Incentives - Retail Stores receive from
the Companies to boost their sales
Jo Dikhta Hai Wo Biktaa Hai… The Major force driving sales in the retail Industry is
VISUAL MERCHANDISING
To Gain Maximum Visibility in The Retail Store, High Incentives are to be paid to the Retail Store
ITC : Britannia :: 16% : 10% Retail Margins. So the Retailer is always interested in giving Higher visibility to ITC Products
Sales Force Incentives
Weekly Sales Targets set for every section
The Incentives become 250% on achieving 120% Sales Target
The Sales Force is encouraged to pour in ideas to increase sales
Minor alterations like giving the higher selling product more visibility
Effect Of Visual Merchandising
Shift From Brand Blocking to Category Blocking
In Categories, the Display Pattern Follows the Colour Blocking Scheme
Color Blocking done Horizontally i.e. same colored bottles in the same shelf
Before After