Consumer Sales Promotion and Methods of Promotion

Price discounts or price-off deals:

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.

Example:

Colgate fresh energy ice blue gel (Colgate India) 50 gm pack, Rs. 5.50 off on normal price, now available at Rs. 12.50 only.

Price discounts are communicated through POP advertising, window displays, sales people, advertising in newspapers, magazines and TV ads.Such promotions work 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.

Price pack deals

Price pack deals are also called value packs. They can take any of the two forms:       

1.Bonus pack and 2.Banded pack.

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.

Example:

Godrej Colour Gloss triple action shampoo, offers 20% extra free. 100ml +20ml.

Sunsilk shampoo (HLL) 400ml bottle gives 33% more free.

Dettol shaving cream  get 40% extra free.

Bisleri – 20% extra free (Bada Bottle, Same price)

The Banded pack is when the marketer develops special packs of the product containing more quantity but the price is 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 2 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.”

Example:

Fairglow soap – buy 3 get 1 free,

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.

2. 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 seems 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 total refund of the purchase amount.

Refunds and Rebates play an important role in the consumer durable segment because the product price is reduced to a great extent because of the rebate offer.

Example:

“Taj mahal Tea” guaranteed its taste by openly telling the public of its offer that “ agar chai pasand nahi aaie, toh pure paise vaapas”!

After having launched it new product Whisper Ultra Thin, confident about the product quality and confident about offering the promised product, to increase its trail and usage, had started the money back offer.

3.Coupon:

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.

The main Advantages of coupons are:

1.Encourage brand switching

2.Stimulate trial for a product

3.Take off the attention from price

Fair and Lovely dark circle removal cream to create more product trials has coupons in the newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack.

4. Contests And Sweepstakes:

Contests and sweepstakes can draw attention to a brand like no other sales promotions technique.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 were very often used earlier where people has 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 participate by showing their abilities.

A sweepstake 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”.

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.

Example:

Britannia khao world cup jao campaign 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 has 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.  

5.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.

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