module IV 2 | Coupon | Brand


Submitted To: Prof Leni vargees

Submitted By : Sampada Karpate

BHOPAL The revolution in retailing industry has brought many changes and also opened door for many Indian as well as foreign players. In a market like India, there is a constant clash between challenges and opportunities but chances favour those companies that are trying to establish themselves. Thus, to sustain in a market like India, companies have to bring innovative solutions. Indian market has potential to accommodate many retail players, because still a small proportion of the pie is organized. Retailing is still in its infancy in India. In the name of retailing, the unorganised retailing has dominated the Indian landscape so far. According to an estimate, the unorganized retail sector has 97% presence whereas the organized accounts for merely 3%. Industry has already predicted a trillion dollar market in retail sector in India by 2010. However, the retail industry in India is undergoing a major shakeup as the country is witnessing a retail revolution. The old traditional formats are slowly changing into more complex and bigger formats. Malls and mega malls are coming up in almost all the places, be it metros or the smaller cities, across the length and breadth of the country. Sales promotion is one of the four aspects of promotional mix. Sales promotion is defined as any of a variety of techniques designed to offer purchasers an extra inducement to buy in the form of value or benefits beyond those offered by the product being purchased. Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. The trend in the retail industry in term of various sales promotion offers are:

Price deal: A temporary reduction in the price, such as happy hour














Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Coupons produced by manufacturers for use by consumers are called manufacturers¶ coupons and they remain very much a part of the consumer promotion landscape. In fact, so much so that in 2002 coupon distribution rose 4.5% to an all time high of 336 billion. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available online. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. Bonus pack: Bonus packs are simply packages containing an extra amount of the product but sold at the price of a regular sized package. Bonus packs are most typically associated with transaction building, but may serve brand building purposes as well. Price off pack: Some manufacturers offer price reductions by printing the discount right on the package. Because it is a price based promotion, it may have a larger impact on transaction building than on brand building, though brand loyal customers will certainly appreciate the savings.


Sweeper stake and contest: Sweepstakes and contests are not synonymous. Sweepstakes winners are determined strictly by random drawing while contests require participants to perform some task or display some talent in order to win.

There are different types of sales promotion that are offered:

Retail promtion

Consumer oriented sales promotion
Consumer promotion

Trade promotion Business oriented sales promotion Industrial Promotion Business promotions

In the past twenty years, all categories of sales promotions have experienced tremendous growth as marketers offering more value to customers has become an increasingly necessary part of overall marketing programs. In fact, as a percentage of total marketing expenditures, sales promotions frequently receive larger combined budget allocations than standard media advertising, according to Promo Magazine¶s annual survey of marketing managers. In 1997, business-oriented sales promotion received almost half of the total marketing budget, while consumer-oriented sales promotions and advertising evenly split the remaining half. By 2002, the allocations shifted back to media advertising, which received 37% of promotional dollars, with

business-oriented sales promotions and consumer-oriented promotions receiving 27% and 30%, respectively. There are Several reasons that accounts for the importance of sales promotion. y The growth of retailer power in distribution channels has led to an increase in consumer promotions. Sometimes, manufacturers make special offers to consumers because a powerful retailer insisted that they do so. y The nature of competition has changed remarkably over recent years resulting in ever greater consumer price sensitivity. The proliferation of brands and brand extensions, highly segmented consumer markets, and lower brand loyalty have combined to make consumers much more aware of price given that many product categories are populated by several competitors. y Price deals have become the rule rather than the exception for many products. Rebates on certain brands of automobiles, department store sales, and coupons on many grocery items are only a few areas where consumers have grown to expect price breaks. y Advertising clutter has forced marketers to find new ways of getting consumer attention. Product benefits alone frequently prove insufficient to prompt consumer action much less get their attention. Thus, marketers increasingly look to sales promotion to find ways of breaking through to customers who face a constant bombardment of promotional messages. y Consumer promotion¶s growth can also be attributed to increased pressure on marketing management for short-term results. Publicly traded companies find themselves especially prone to this orientation. Many investors look to immediate bottom-line results rather than the long-term health or stability of the companies in which they invest. Responding to this pressure, marketing managers seek quick fixes for sagging bottom lines. Sales promotions are often seen as ways to boost near term sales. However, as their use becomes more common, their costs become regular and recurring and therefore potentially selfdefeating.




Brand equity detoriation


Relationship Between Transaction and Brand Building Promotions

Promotional objectives can usually be categorized into types. Promotion that looks to build awareness is distinct from that which seeks to create interest, since the latter seeks to identify a need in the consumer while the former simply places the brand in their awareness with little context. Products and services that are new and unfamiliar might require a promotional campaign that provides information, acquainting the consumer with the facts about the product and distinguishing it from others as a foundation for other promotional efforts. Another promotional objective is to stimulate immediate demand, often through temporarily discounted prices or giveaways. Finally, some promotions are designed to reinforce a brand after the sale, reminding consumers of the product or service's experience, social status or image. Before a promotional objective can be set--let alone achieved--a business must have certain facts on which their decisions should be based. A clear target audience should be in mind for each promotional objective, with as much specificity as possible. The target audience should be matched to a theme for the product or service and eventually matched to a specific message. This message will

essentially be the promotional objective. A final consideration that would be the means by which the product or service will be distributed, as it might suggest methods for connecting to the target audience and disseminating the promotional message. Hyper city Different Sections in hyper city:

y Food: 1.Staples 2. Beverages 3. Perishable y y y y y y y y y HAM Home care Personal care Foot wear Men wear Sports Home need Home lines Home ware

Sales promotion offers: 1. Day wise promotion: They follow a strategy of doing any day promotional activity on one or other product. For example on Parle G products they give certain amount of discount on biscuits on one day in a week. This time this discount is being given on Wednesday. 2. Season wise promotion: In this they do season wise promotion and this is continued for a month and in the next month they change the promotion based on the season which is going on. As in this season mangoes are coming so this month they celebrated mango king month. On 27 of this

month they are organizing an event or we can say the competition in which the candidates have to eat as many mangoes they can and can win the exting prices .With this exiting event one more exiting thing is that they are doing this with help of 92.7 fm. 92.7 fm RJ¶S will be coming to hyper city to organize this event. 3. Back to school: In this they are promoting the school bags, water bottles and other school things which are needed in school as from July the schools are going to reopen and they are promoting this on the radio mirchi so that every one can get the knowledge of this through radio also.

4. Promotion CSR activity through NGO: In this promotional activity they have called the children from Arushi NGO who were handicapped and treat them with a good breakfast and provide then with certain gifts.With this they played holi with them only with dry colors giving message to save water.So this was appreciable that with such promotion they are giving a social message to save water. 5. Mango eating contest: In this summer season they are now coming with the mango eating contest as we know that mongo is king of fruits so they are conducting a contest of eating with as many mangoes in tie up big 92.7 fm.

6. There is a promotion going on that is if the customer buys the britania product worth Rs 40 or above then they will get a chance to win bicycle ,school bags and many more items.

7. There are many different events that is being organized in the hyper city .For example fancy dress competition for children, drawing competition, magic shows, fashion show. 8. They also have an hyper city discovery club in which the customer receive points and this card acts as debit card for the customer. This card is basically use when we purchase item from HAM i .e hi-tech appliances multimedia. This is because by of these item the customer can add maximum point in his or her discovery card.The description of this card is as follows: Reward points program 1. Hypercity Discovery club members get additional discounts as Discovery Reward Points. 2. Each Discovery Reward Point is worth re.1/3. Exclusive offers available for Hypercity Discovery Club members, every month, across all categories. 4. Hypercity Discovery Club members enjoy exclusive offers round the year, across all categories. 5. Discovery Reward Points will be valid for a period of 2 years.

6. Hypercity Discovery Club Card comes with al lifetime validity.

Enrollment Fees 1. 2. 3. Customers can sign up at the Hyper city Discovery Club desk on payment of Rs.200/Members get 100 Discovery Reward Points on joining the program. Members get a bouquet of offers containing exclusive promotions

Redeeming Discovery Reward Points 1.Each Discovery Reward point is worth Re.1/2.Discovery Reward points can be accumulated and exchanged at the time of payment/billing 3.To redeem Discovery Reward Points please present your Hyper city Discovery Club Card at the time of billing. 4.Discovery Reward Points can be redeemed only by Hypercity Discovery Club members on presenting their card at the cash counter and signing to acknowledge the receipt of the redemption of Discovery Reward Point. 5.Discovery Reward Points can be used to buy any merchandise within the store, including Hypercity Gift Vouchers. 6.Discovery Reward Points should be redeemed within their validity period(2 years) failing which the Hypercity Discovery Reward Points automatically will lapse. Add-on Card 1.Hypercity Discovery Club members can also avail an add-on card on payment of Rs. 100/2 Hypercity allows both primary & add-on to earn Discovery Reward Points, but . redemption possible through primary card on.

EXAMPLES of sales offer: Hyper save on: y y y y y Air coolers 32 samsung LCDs LG 42 LCD Softy gear XL On home action

Communication objective: Find a lower price elsewhere and we will double the difference best price guarantee. This is there communication objective because by this they are attracting the customer and telling them if they get any item at such a low price they will double the difference .If any customer challenge them about the price of same item in any other store then they give them one form to fill and return the difference.

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