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Executive summary
Though the Indian market has lots of potential to expand it is very hard to
survive is this kind of market. The Indian market has cut throat competition
may it be in FMCG sector or Consumer durables. Increasing growth can be
achieved at the expense of competitors. This results in companies trying to
gain competitive edge through increasing differentiation in their brands,
emphasizing how they meet the needs of customer.
Today’s consumers are becoming harder please. They are smarter, many
more competitors with equal or better offers approach more price conscious,
more demanding, less forgiving, and them. The challenge is not only to
produce good products but also to make people buy them. Now on such a
competitive field it becomes a Herculean task for a company to differentiate
its brands and make them stand out among the diverse range. The company
tries to overcome such difficulties by introducing various marketing
strategies and advertising technique, Sales promotion is now a day widely
used strategy by various companies. Various sales promotion techniques
help the company to increase its sales by offering something free with the
product or by offering the product at lower cost if purchased at a large
quantity. This increase in sales is generally short term. Promotions help the
company to create awareness and interest towards the product that is
followed by the desire to buy the product.
Time has changed, gone the days when child would sit back and obey the
orders of parents. As very well pointed out by the McDonalds that the kids
are no longer the passive members of the family. They take part actively in
decision making for buying the smallest of the product in household,
considering the influence of the children in the day to day buying decisions
the strategy to promote gifts to children is yielding outstanding results.
“Creativity and innovation is the key to this form of promotions. The more
different and attractive your give away gift appears, the more likely it is that
it will be a run away success ”. The trend has become a craze and all leading
brands are ready to offer something different. Specialized Giveaways make
excellent premiums. The giveaways should be something genuinely useful,
and it should be kept in a place where the prospect will refer to it when they
have need for a product.. It’s important you position your give-away
effectively. The taste liking and the desire of the child is considered before
making buying decision. So various companies are targeting children for
sales promotion. If the child is happy then the parents readily buys the
product.
This report attempts to study the sales promotion strategies for children that
are adopted by the various companies in growing its sales volume
Introduction
Definition:
More on it...
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.
Writing about sales promotion tools, Prof. Philip Kotler observes – “they
have 3 distinctive characteristics.”
• Price discrimination
Often such price discrimination are offered in specific cities in the country, .
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 500g pack of Bournvita, you get a free mug . Offer valid only till
stocks last.
Regional Differences
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.
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 favourably low.
This is true both for 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 on 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
• Short-term orientation
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 organization. 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.
This will result in lasting brand identities reflecting brand image will keep
customers loyal to the brand.
Difference Between Advertising And Sales Promotion
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
• Consumer Acceptance
Woodland has a scheme of upto 50% off on Woodland shoes and apparel.
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.
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.
• Excess Stocks
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
channels, that is the consumers are encouraged to demand the product from
retailers who in torn place orders with wholesaler or manufacturer to meet
the consumer demand.
Manufacturer
Retailer
Consumer
Wholesaler
Flow of demand
Flow of promotion: sales promotion and advertising
PULL
This strategy may require little promotional efforts from the resellers except
to stock input the product on shelves.
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
and efforts. The promotional efforts are focused at pushing the product
through the distribution channels; 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
Manufacturer
Wholesaler
Retailer
Consumer
Flow of demand
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.
Manufacturer
Wholesaler
Retailer
Consumer
Financing incentives
Special events
Premiums
Bonus packs
Exchange offers
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 promotion tactics required are likely to be quite different.
Promotional strategies are also likely to be affected for different non-durable
and durable products. Also important in the development of promotional
strategy would be the target audience is towards whom the
• Introduction stage
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 minimise 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 tried 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 on-
pack coupons 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 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.
• 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.
Techniques Of Sales Promotions
allowance
Contests and sweepstakes Slotting allowance Sales manuals etc.
Premiums and advertising Merchandise allowance
specialties
Free trials POP displays
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 SPIFFS (push money)
Incentives
Sales training programs
Trade shows
The following basic objectives can be pursued with sales promotions in the
consumer market.
When a firm wants to attract new users sales promotions tools can reduce the
consumer’s risk of trying something new. A reduced price or offer of a
rebate may stimulate trail purchase.
The most prominent frequency programs are found in the airline industry
where competitors try to retain their most lucrative costumers by enrolling
them for various perks such as frequent flyers can earn free travel, hotel
stays, gifts etc.
Many soaps brands are doing sales promotions to stimulate larger purchases.
When people generally come to buy soaps, and see the offers like,
Because sales promotions can attract attention and motivate trial purchase, it
is commonly used for new brand introductions.
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.
The main advantage of this tool is that it has a very Strong consumer
response
They can take any of the two forms: one is bonus pack and banded pack.
A variation of this offer 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.
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.
• Coupon
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.
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 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.
• 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.
• In-store sampling
• Door-to-Door sampling
• Newspaper sampling
• On-package sampling
• Mobile sampling
• Trial offers
Trial offers have the same goal as sampling – to induce consumer trial use of
a brand- but they are used for more expensive items.
Premiums
They are items offered free or at a reduced price, with, the purchase of
another item. Many firms offer a related product free.
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.
Advertising specialties
Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads,
pens, calendars, etc.
• Continuity/frequency Programmes
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
Marketers and advertisers used to think that brand placements affected only
consumers’ 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 promotions.
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.
If a family bought a refrigerator 10 years 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.
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:
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
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 of 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. Today, they take active part in decision-
making and have become friendlier to their parents. This is largely true of
decisions across the board - from the restaurant to go to or the car and house
that the family buys.
McDonald's world over, has been a favourite 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 children 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 favourite of
kids. The most important experience that McDonald’s provide is that their
outlet 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 McD restaurants - most of McDonalds restaurants have separate
play areas for children. Their crew members are also trained to make the
experience memorable for the kids. Even all our 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 favourite of kids worldwide as well as in India.
What McDonalds learn 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 QSC&V (quality, service, cleanliness and value) has worked
successfully everywhere and has proved to be the winning formula for
McDonald's in India as well.
McDonalds goes with pull strategy in India where the have various
promotions like giving free gifts , they give toys with their product called
happy meal, McDonalds 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. Mcdonalds have contest for children from time to time, it
recently had a promotion of consumer premium i.e. it gave a coupon with
20percent off on next meal or a soft serve free with next purchase.
McDonalds distributes coupons at various college and school campus
Cadbury
In the chocolate products like dairy milk, five stars, perk, etc. Cadbury offer
direct price pack deal for example 20% extra chocolate with, in this offer
children get 20% extra chocolate at same price
It also offers a price discount and price off deals for example a family pack
of chocolates like perk, five star and dairy milk at a discounted price.
Cadbury also had printed coupon in local newspaper and the promotion was
that the 10 Rs chocolate would cost 5 Rs 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 chocolate of Rs
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 mask, sunglasses, 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 Cadbury gift hampers. Cadbury also
gifted pens, pocket calendars, caps, t-shirt etc as consolation prizes.
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 r 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
Nestle
Nestle the other company manufacturing chocolate brands in India .it has a
product line like Milky bar, Bar one, Munch Kit Kat etc. nestle chocolate
also very famous among the Indian children especially Kit Kat the one of its
kind wafer chocolate,
Nestle also conducts various sales promotions, they also offers price
discount and price off deal in which more chocolate at same price .they also
have price pack offer where in they give 10-20%exta chocolate it also
altered the price pack deal by giving 1 or 1 free pack. Nestle also arranged a
competitions in schools for which the gifted with the nestle gift 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
and down with the thread. The yoyo fad was for long time among the
children
Health drinks
Cadbury Bournvita
Cadbury tries to promote its product with both pull and push strategies. Pull
strategy is
The best pull strategy to promote sale was through the Bournvita book off
knowledge Bournvita's 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 broadcast fro lot of
audience interest and involvement, particularly among children and other
members of the family.
Results
Comment
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.
BOOST
Objective
The promotion
picture cards illustrated famous trains from the history of railways around
the world. The
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
the front with an 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
Each picture card had a tear-off strip on its right hand side, printed with a
number
album with spaces in which to paste the picture cards. The album contained
much addi-
tional background information on, for example, the early history of trains;
the expansion
in India; unusual facts; glossary of railway terms; the future of trains, etc.
The album also contained a page with spaces for 6 further tear-off strips
from the
picture cards to be pasted down. No duplicates were allowed - the strips had
to carry 6
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 per cent during the six month
promotional
the album, 61,147 were applied for. This represented almost exactly 10% of
the 5OOgm
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 goodwill gesture HMM increased the number of train sets
awarded from
100 to 300.
Both trade and consumer feedback on the promotion was extremely positive.
Market research conducted at the end of the promotion reported that it was
regarded very
favourably by mothers, who liked its educational aspect. It was the type of
promotion
Comment
the consumers but their mothers are the purchasers. By giving the picture
cards an
the child encourages the mother to make further purchases of the brand
offering 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: 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
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 all the train theme continued and extended the message of
Boost's
the careful marketing effort that had been put behind the brand previously, it
was simply
a new and impactive expression and execution of all that Boost had been
saying about
itself since its launch.
Britannia
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. All the 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.
Britannia also uses a lot off push strategy to promote sales. They provide a
discount and display allowance to the retailer and wholesaler so as to attract
children to buy their product. They arrange a window display competition to
attract retailers to buy more from Britannia
Camlin
These products are sold through a nationwide distribution network that has
350 distributors and 30,000 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 1997-98, 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.
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, after several years, 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 learn 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 competition
Potato chips or wafers are one of the most popular snack items consumed in
almost all the parts of India.
Cartoon Network and Frito-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 Chipps pack.
Today almost every Childs 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 every thing what has a
cartoon picture on it. Frito lays has read the mind of Indian child and very
tactfully arranged its sale promotion by giving free gifts with its chips. Frito
Lay 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 cartoon favorites and the
most liked promotion of tazos. 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-Doo designs, kids can start their very own
collection. 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
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 ages of six
and 14.
They can be seen on the back of everything from cards to interactive toys to
books, DVDs, movies and a range of other products.
That's right. Pokemon fever which has already swept the globe, generating
worldwide liking And it isn't only toyshops. Grocery shops and kiosks are
selling products like Cheetos and other confectionaries giving Pokemon
tazos stickers and Pokemon cards that are making them the hottest munch in
town.
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 rage after the cartoon characters, Beyblades are the
next big thing to hit young minds. Collecting them is a hobby with children
these days.
Almost all the companies are now 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, almost every child had
his own collections of tazos, which are like a asset to them. And now it’s the
Pokemon card and Beyblades the recent cartoon character that is making the
children cry for the Frito lays products.
Suggestions
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 to ignore promos. In fact, 30
percent 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 to 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 promotions in
complete isolation. Promotions alone 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 companies
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 out 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.
Annexure
Books referred
Webliography
• www.google.com
• www.thehindubusinessline.com
• www.indiainfoline.com
• www.mcdonaldindia.com
• www.estrategicmarketing.com
• www.cadburyindia.com