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CONTENT

Sr no Topic

1 Introduction to sales promotion


a Advantages and disadvantages
b Difference between advertising and sales promotion
2 Reasons for rapid growth of sales promotion
3 Pull and push strategies of sales promotion
a Product life cycle and pull and push strategy
4 Technique of sales promotion
a Consumer promotion
b Objectives of consumer promotion
c Technique of consumer promotion
5 Rules of sales promotion for children by ICC international
code of sales promotion
6 Sales promotion strategies adopted by McDonald
7 Sales promotion strategies adopted by Cadburyand Nestle
8 Sales promotion strategies adopted by Britannia
9 Sales promotion strategies adopted by Camlin
10 Sales promotion strategies adopted by Frito lays
11 Suggestion
12 Conclusion
13 Annexure
14 Bibliography and webliograhphy

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

Sales promotion refers to many kinds of incentives and techniques directed


towards consumers and traders with the intention to produce immediate or
short-term sales effects.

Definition:

“Sales promotion includes incentive-offering and interest-creating activities


which are generally short-term marketing events other than advertising,
personal selling, publicity and direct marketing.

The purpose of sales promotion is to stimulate, motivate and influence the


purchase and other desired behavioral responses of the firm’s customers.”

More on it...

Sales promotion offers a direct inducement to act by providing extra worth


over and above what is built into the product at its normal price. These
temporary inducements are offered usually at a time and place where the
buying decision is made. Not only are sales promotions very common in the
current competitive market conditions, they are increasing at a fast apace.
These promotions are direct inducements. In spite of the directness, sales
promotions are fairly complicated and a rich tool of marketing with
innumerable creative possibilities limited only by the imagination of
promotion planners. Sales promotion is often referred to by the names of
‘extra purchase value’ and ‘below-the-line selling’.
Used to achieve short-term sales :

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.

Becoming too common :

Today we find companies in almost all sectors offering some sort of a


promotion scheme. These sectors range from automobiles to beverages, from
financial services to foods, from household durables to services, from
household products to business products, from personal care to textiles and
apparel.

Writing about sales promotion tools, Prof. Philip Kotler observes – “they
have 3 distinctive characteristics.”

1. Communication: they gain attention and usually provide


information that may lead the customer to the product.
2. Incentive: they incorporate some concession, inducement, or
contribution that gives value to the consumer.
3. Invitation: they include a distinct invitation to engage in the
transaction now (offer valid till …or till stocks last)

Major users of sales promotions are marketers of soaps, detergents,


toiletries, soft drinks, toothpastes, tea, coffee, footwear, textiles, readymade
garments, consumer durable goods, music systems, autos, televisions,
washing machines, microwave ovens, refrigerators, magazines and many
other household items. In fact the list of product categories using sales
promotion is ever-increasing, no matter what the product category, it could
be staples, impulse goods, emergency goods shopping goods, speciality
goods, unsought goods, industrial products, or different types of services.

Sales promotion is now established as an important and increasingly


respectable element of the marketing communication tools. Sales promotion
expenditures are increasing dramatically, and economic recession is most
likely to fuel this trend further.

Advantages of sales promotion

Sales promotions have a significant effect on the behaviour of consumers


and trades people. Such promotions can bring in more profits for the
manufacturers because they permit price discrimination.

• Price discrimination

Producers can introduce price discrimination through the use of sales


promotions. They can charge different prices to different consumers and
trade segments depending on how sensitive each segment is to particular
prices. Coupons, special sales events, clearance sales and discounts are
examples to explain the phenomenon.

Often such price discrimination are offered in specific cities in the country, .

Such price discriminating sales promotions that enable consumers and


traders to pay less in certain market area or stores usually bring in more
contribution than if one price is charged to all. Such price discrimination
also held in adjusting to fluctuations in demand and supply situation without
affecting any changes in the list price.

• Effect on consumer behaviour

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.

In our over communicated society and because of selective attention, it is


not uncommon to ignore many advertisements. Sales promotion deals such
as discounts, debates, coupons, premiums, etc also increased the attention
getting power of advertisements and convey the advantages and benefits of
the brand, including price information. By using promotions, marketers can
reach the deal prone customers and encourage brand switching.

• Effect on trade behaviour

Short-term promotions present an opportunity and encourage dealers to


forward by. This forward buying ensures that retailers won’t to go out of
stocks. As dealers have more than the normal stocks, they think it advisable
to advertise in local media, arranged displays and offer attractive promotion
deals to consumers. These actions help in increasing the store traffic.

• Retailer promotion: Buy Cadbury’s products worth Rs.3000/-


and get any 30 chocolates worth Rs.5 each free.
• Buy a box of Munch and get 1 Munch free.

Regional Differences

The South is generally characterised by greater degree of going out and


people tend to drink outside the house. The Tamilian, consumer in
particular, is value oriented, rational and looks up to film stars, while the
Keralite is more international in his outlook. The Bangalorean is as
cosmopolitan as his Mumbai or Delhi counterpart."

That sort of diversity believes Coca-Cola, calls for a corresponding variety


in promotions. The place to attract is the retail zone. Coca-Cola recently
launched a promotion called ' world of Coca-Cola' covering Chennai in
Tamil Nadu and Bangalore and Mysore in Karnataka. It was a value deal,
aimed at the consumer disposed towards global- style outings. The
consumer pays Rs 20 along with a label of a 500 ml of PET bottle to get a
card that entitles him to gifts and discounts at 29 outlets, including those of
global chains such as TGI Friday and Baskin and Robbins this, in these
cities. About four years ago, Pepsi had a similar promotion with its Pep
cards. This, however was on a national level, while the Coca-Cola
promotion is South based build retail level activity matters more than it does
in the North. The primary aim is to help the retail raise volumes.

Disadvantages of sales promotions


While sales promotion is a powerful and effective method to produce
immediate short term positive results, it is not a cure for a bad product or
bad advertising. In fact, a promotion is speed up the killing of a bad
product.

• Increased price sensitivity

Frequently promoted brands in the product category, especially on the basis


of price, make consumers and traders more price sensitive not only for the
promoted brands but for other brands as well in the same product category.

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.

• Quality image may become tarnished

If the promotions in a product category have been rare, or the product


happens to be of high involvement category, the promotions could have a
negative effect about its quality image. Consumers may start suspecting that
perhaps the product has not been selling well, the quality of the product is
true compared to the price or the product is likely to be discontinued because
it has become outdated.

• Dealers forward buy and divert stocks

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

One of the trade promotions tool is to offer promotional allowances to trade


people to motivate them to provide merchandising support and to pass on
some benefit to consumers. This generally is the condition attached with
such promotional allowances. In many cases, the dealers do not cooperate in
providing the merchandising support nor do they pass on any benefit to
consumers. The retailer might not be willing to give support because he does
not have the place, or the product does not sell much in his shop, or may be
he thinks the effort required is more than the commission/benefit derived.

• 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.

The argument given in favour is that companies should develop superior


products or services which are better than competitors and consumer should
be convinced through appropriate and focused advertising about the
superiority of the product and its image.

This will result in lasting brand identities reflecting brand image will keep
customers loyal to the brand.
Difference Between Advertising And Sales Promotion

Advertising Sales Promotions

By using a variety of persuasive Besides giving reasons in the form of


appeals, it offers reasons to buy a different appeals, they offer incentive
product or service. to the consumers to buy the product
or service now.
Appeals are emotional or functional Appeals are rational
in nature
Time-frame is long term Time frame is short term
The primary objective is to create an To get sales quickly or to induce
enduring brand image trial.
Indirect and subtle approach towards Direct in approach to induce
persuading customers to buy a consumers to buy a product or
product or service service immediately by temporarily
changing the existing price-value
relationship of the product or service.

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

The air of change is gaining momentum after the introduction of economic


liberalisation. Due to increase in competition, companies are finding it
increasingly difficult to compete on quality. They are therefore resorting to
more and innovative methods of sales promotion.

Customers Have Become More Price Sensitive

This increased price sensitivity is a direct result of rampant inflation.


Economic recession is likely to fuel this trend further, as consumers and
dealers become more sensitive towards prices.

• Sales Promotions Generally Create An Immediate Positive


Impact On Sales

Advertising, personal selling and other methods of promotion produce


slower sales response compared to sales promotion. Sales promotions are
mostly for short duration, for a specified period, leading to a sense of
urgency in consumers to buy now. This creates an immediate positive
impact on sales. With careful planning, it would not be difficult to measure
the impact on sales volume and profit, and see the consequences of running
the promotion even on weekly or daily basis.

• Products have become more standardized

In many product categories, there is a proliferation of brands; many of them


are line extensions and me-too brands. Most brands are being perceived by
consumers to be more or less similar within a given price range because of
the inability of manufacturers to develop truly differentiated products. Under
these circumstances, advertising messages are unable to strongly influence
the consumers’ perceptions and create brand franchise. As a result of these
perceptions of similarity among brands, marketers have no way but to
compete on the basis of extra benefit offered through sales promotion.
Competing companies struggle to capture market share by using every tool
likely to bring sales success.

• Consumer Acceptance

As competition intensifies and promotions proliferate, consumers have


learnt to earn the rewards of being smart shoppers. Over a period of time,
they have also learnt that brands on promotion are not necessarily of lower
quality.

Woodland has a scheme of upto 50% off on Woodland shoes and apparel.

This learning based on experience, gets transferred to other product


categories as well. Consumers have learnt that promotions are being
extended to many product categories where such promotions were unheard
of.

• Expectations Of Price Decrease

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.

• Advertising Has Become More Expensive And Less Effective

All the advertising media have become quite expensive. Audio-visual


medium, which is considered as the most effective for short-duration ads,
may cost in excess of Rs. 1 lakh for a 10 second exposure during prime time.
In many cases, consumers have reached a point of boredom due to excessive
advertising on TV. Some consumers even consider advertising as an
intrusion into their privacy, leading to zapping (surfing channels). Firms
with small budgets cannot compete with big companies which spend huge
sums of money on advertising. For these small budget firms, sales
promotion is a more cost-effective promotion method to produce sales
results.

• Trade Has Become More Powerful

Retailers and wholesalers have become powerful and find themselves in a


position to demand extra facilities from the companies. They Channel
members demand more incentives to get the desired results. Manufacturers
do not seem to have any alternatives but to concede to their demands,
keeping in view the competitive market conditions.

• Pepsi offers silver coins to their dealers stocking Pepsi cases


during Diwali season. And the promotions offer differs across
dealers.

• Emphasis On Sales Volumes

Towards achieving the long-term profit goals, manufacturers try to attain


high sales volume. Brand managers and product managers find themselves
under pressure to achieve short-term sales results for the sake of their
careers. Compared to any other promotional method, sales promotion is a
more effective method to generate short-term sales volume.

• Sales Promotions Maximize Profits

A number of economic theories conclude that a company can maximise


profits by using sales promotion. Such promotions can permit price
discrimination by allowing the brand to compete in 2 or more different
market segments. Sales promotion may allow a premium brand to compete
with a lower tier brand among price sensitive consumers. For example, a
premium band of toilet soap may be on promotion in some price sensitive
markets, while in the remaining markets it is sold at its normal price.

• Introducing An Element Of Interest


There are a number of promotions which are often called interest
promotions. Some of the more popular interest promotion techniques are
samples, contests, and sweepstakes, free premiums and mail-in premiums.
These promotions create an element of interest and excitement, and
consumers enjoy these and response enthusiastically to such contests and
sweepstakes, etc.

• Impulse Buying Is Increasing

The number of marginal customers is increasing. Displays at the point of


purchases lead to impulse buying by consumers, more so if the items on
display are not expensive. There is a popular saying in Hindi, “jo dikhta hai,
voh bikta hai.”

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.

These are also known as display promotions

• Sales Promotion Specialists Are Available

As a result of economic liberalisation, the number of management


institutions has increased. This has lead to the availability of specialists, who
are not only well paid but can handle this specialised work more efficiently
in the current market conditions, where sales promotion has become more
important.

• Excess Stocks

Because of increasing number of brands, it is difficult for manufacturers and


dealers to anticipate future sales. This, at times, leads to excessive
inventories, and the quickest way to clear that, is to go for sales promotion.
Footwear companies like Bata, Woodland, etc regularly offer around 50%
discount on their products.

Pull And Push Strategies


Sales promotion decisions are significantly affected by whether the company
decides to do to pull or push strategies to accomplish its objectives. Such a
decision may require a little or a lot of cooperation from resellers. The
requirements to implement one strategy might be little more than to just
stock the product by the retailers. The other strategy may demand more
participation from resellers such as the ability to explain to the consumers as
to how a product works.

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.

A pull strategy is appropriate when

• The product demand as high.


• It is possible to differentiate the product on the basis of real or
emotional features,
• Brand consumers show high degree of involvement in the
product purchase,
• There is reasonably highly brand loyalty and consumers make
brand choice decision before they go to the store.

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 promotion: trade deals advertising, personal selling.

Flow of demand

Push strategies generally appropriate for product categories where there is


low brand loyalty and many acceptable substitutes are available in the
market. It may also be suitable for relatively new products or when the
brand choice is often made in response to displays in the stores, the product
purchase is unplanned or on impulse and the consumer is familiar and has
reasonably adequate knowledge about the product. Manufacturers, who
cannot afford to engage in sustained mass advertising, often use push
strategy and offer effective incentives to dealers.

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.

PULL AND PUSH

Manufacturer

Wholesaler

Retailer

Consumer

Flow of promotion mix


Flow of demand

Pull promotions Push promotions Push promotions

(Manufacturer to consumer) (Offered to trade) (Offered by retailer)


Sampling Discounts Price cut

Coupons Display allowance Free goods

Price packs Advertising Premiums


allowance
Rebates Displays
Free goods
Continuity programs Feature advertising
Contests
Contests Quantity discount
Trade coupons
Sweepstakes Clearance sale
Quantity discounts
Tie-in promotion

Financing incentives

Special events
Premiums

Bonus packs

Exchange offers

Product life cycle and pull or push strategies

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.

• Cadbury is introducing the new brand bytes having an


introductory offer Rs5 off which will be available through the
coupons that are distributed with newspapers like the Times of India.

• 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.

Generally a combination of pull and push promotions prove more effective


during maturity stage of a product life cycle. The market share of the brand
is an important factor in gaining the support of resellers.

• 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

Consumer market sales Trade sales promotions Sales force sales


promotions promotions

Price discounts Off-Invoice Allowance Sales contests


Price pack deals Buying allowance Incentives
Rebates/refunds Display and advertising Awards and prizes
allowance
Continuity programs Buy back allowance Premiums (gifts)
Coupons Bill back allowance Sales meetings
Samples Count and recount Training

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

Consumer sales promotions

Sales promotions directed at the end-user, whether by the manufacturer or


the retailer, are called consumer sales promotions. Manufacturer announced
promotions to consumers are based on ‘pull’ strategy of the manufacturer
and retailer announced promotions to consumers constitute ‘push’ strategy
of the retailer.

Objectives of consumer market sales promotions

The following basic objectives can be pursued with sales promotions in the
consumer market.

• Stimulate trial purchase

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.

• Pantene when it was launched did a lot of sampling, to


stimulate trail purchase. Their efforts have surely shown results, with
Pantene being one of the top selling brands in India today.

• Stimulate repeat purchases

In-package coupons good for the next purchase, or the accumulation of


points with repeat purchases, can keep consumers loyal to a particular brand.

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.

• Stimulate larger purchases

Price reductions or two-for-one sales can motivate consumers to stock up on


a brand, thus allowing firms to reduce inventory or increase cash flow.

Many soaps brands are doing sales promotions to stimulate larger purchases.
When people generally come to buy soaps, and see the offers like,

• Introduce a new brand

Because sales promotions can attract attention and motivate trial purchase, it
is commonly used for new brand introductions.

Cadbury bytes was promoted with Rs 5 off

• Combat or disrupt competitors strategies

Because sales promotions often motivate consumers to buy in large


quantities or try new brands, they can be used to disrupt competitors
marketing strategies. If a firm knows that one of its competitors is launching
a new brand or initiating a new advertising campaign, a well-timed sales
promotions offering deep discounts or extra quantity can disrupt the
competitor strategy. Add to the original discount an in-package coupon for
future purchases, and a marketer can severely compromise competitor’s
efforts.

• Contribute to Integrated Marketing Communications

In conjunction with advertising, direct marketing, public relations and other


programs being carried out by a firm, sales promotions can add yet another
type of communication to the mix. Sales promotions suggest an additional
value, with price reductions, premiums, or a chance to win a prize. This is an
additional and different message within the overall communication effort.
Techniques of consumer sales promotions

• 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.

• Boost 500gm pack, Rs. 10 off on normal price, now available at


Rs. 90 only.

Price discounts are communicated through POP advertising, window


displays, sales people, advertising in newspapers, magazines and TV ads.

Determining the quantum of discount depends on the consumer’s price


perceptions and may be difficult to decide.

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. If there are three different models
of a product and because of the discount offered the price of the higher end
model is appears, not too high to the consumer as compared to the lesser
priced model, then the consumer may buy the higher end model.

The main advantage of this tool is that it has a very Strong consumer
response

Such discounts offer immediate value and strong consumer response.

The Flexibility and convenience of implementation is another advantage.


Price offers are extremely flexible in the sense that the producer has total
control on the number of units being promoted and the market area in which
the offer will be given. If different packs of the same brand are available, the
marketer can choose the one size that is not selling well.

A discount offer may rapidly lose its advantage if competitors announce a


similar offer. In fact, competitors are very likely to retaliate leading to the
danger of triggering a promotion wall in which no one benefits except the
consumer.
Such discounts are short term and are unlikely to produce any long-term
gains because the incentive is to purchase now by creating sense of urgency.
When the discount is withdrawn the sales may fall below the level of pre-
promotion period. And in the long run the sales would return to pre-
promotion period level.

• Price pack deals

Price pack deals are also called value packs.

They can take any of the two forms: one is bonus pack and 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.

• Cadbury temptation offers 10% extra free. 200gms+20gms


• Boost 500grm jar gives 20% more free.

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.

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.”

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.

• 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.

• 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.

Coupons can be of 3 types:

• Direct to the consumer


• Media distributed
• Product distributed.

The main Advantages of coupons are:

• Encourage brand switching


• Stimulate trial for a product
• Take off the attention from price

• Many companies to create more product trials has coupons in


the newspapers and magazines which avail you some rupees off on
there products

• 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 tend to be somewhat expensive to administer because each entry
must be judged against winning criteria.

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.

• 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.

Techniques used in sampling:

• 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.

Ex: exercise equipment, appliances, consumer electronics, etc. the expense


to the firm of course can be formidable. Segments chosen for this sales
promotion technique must have high sales potential.

• Premiums and advertising specialties

Premiums
They are items offered free or at a reduced price, with, the purchase of
another item. Many firms offer a related product free.

There are 2 options available for the use of premiums:

1. A free premium provides consumers with an item at no cost, the


item is included in the package of the purchase item.
2. A self-liquidating premium requires a consumer to pay most of
the cost of the item received as a premium. In this promotion offer
the consumer is required to send a specified sum of money along
with a proof of purchase to claim the premium.

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.

• Buy a Cadbury Bournvita and get a dairymilk worth rs 10 free

Advertising specialties

Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads,
pens, calendars, etc.

Advertising specialties have 3 key elements:

A message placed on a useful icon, and given to consumers with no


obligation.

• Pepsodent toothpaste 100gm pack get free dental insurance


worth Rs.1000, this is a very effective strategy because it is giving
you’re the guarantee that nothing can happen to your teeth. The
Rs.1000 insurance speaks a lot for its brand and its product thrust.
• Buy any Nestle chocolate and get tatoo free.
Many other kids products are influence a lot by such specialties especially
liked by the kids like tattoos, masks, tazo, cricket bats etc. hence products
that have such offers sell more than the other brand available.

• Ruffles lays, get free Tazo,


• Rasna, get free Prankies

• 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

Brand placement often referred to, as product placement is the sales


promotions technique of getting a marketer’s brand featured in movies and
television shows. The use of a brand by actors and actresses or the mere
association of the brand with a popular film/ television show can create a
positive image and have a huge impact on the sales of a brand.

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.

• Coke in Yaadein , Pepsi in Khushi


• Pass Pass in Yaadein
• Event sponsorship

When a firm sponsors or co-sponsors an event such as a rock concert, a


cricket match, etc. the brand featured in an event immediately gains
credibility with the event audience. The audience attending an event already
has a positive attitude and affinity for the contest – they choose to attend.
When this audience encounters a brand in this very favourable reception
environment, the brand benefits from the already favourable audience
attitude.

• Coke and Pepsi keep sponsoring many events.


• Exchange offers

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.

Rules or sales promotion as led down by ICC International code of sales


promotion
ICC International code of sales promotion

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:

Sales promotions addressed to or likely to attract children:

a. should be designed and conducted in a way that will not cause


physical, mental or moral harm to children;
b. should not offer promotional products that are unsuitable for
distribution to children;
c. should not encourage children to enter into unsafe situations or
strange places or talk to strangers e.g. for the purpose of making
collections or accumulating labels, wrappers or coupons;
d. should make it clear that parental permission is required if
prizes and incentives might cause conflict between children and their
parents; examples include animals, bicycles, outings, concerts and
holidays.
McDonald

"Kids are no longer passive members of the family."

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

Chocolates and confectioneries

Cadbury

Cadbury India began its operations as a trading concern in 1947. Cadbury in


the Indian sub continent defined the first taste of chocolate. Ever since
Cadbury chocolates were launched in India it has been ruling the heart of
Indian child. Cadbury the name every child has in his mind when you talk
about chocolates in India

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.

Internet promotion is one of the new innovative promotion by Cadbury; u


can play different game on www.Cadburyindia.com with different
chocolates of Cadbury.

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

mainly in health drink product i.e. Bournvita. With Bournvita Cadbury


offered variety of gift from time to time, it had given various gifts like
Bournvita sunglasses, watches, balls, rackets etc recently it has started
giving the new toy Beyblades to children with the new Bournvita jar and
refill pack.

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.

The Bournvita ‘book of knowledge’


Objective

To enhance the brand image of Bournvita by supporting the main advertising


proposition of the brand: 'Brought up Right-Bournvita Bright', thus building
an enduring consumer group for the brand. The promotion Consumers
sending in two proofs of purchase from any size of Bournvita were offered
FREE the Bournvita Book of Knowledge, a compendium of questions and
answers from the Bournvita Quiz Contest

Results

Demand for the Bournvita Book of Knowledge was so great that a


substantial reprint was required. Market research indicated very high recall
and a linkage in the public's mind between Bournvita, the Quiz Contest, and
the Book of Knowledge, ranging from 49% in Delhi to 66% in Madras. The
scheme was therefore continued in subsequent years, with further annual
compendiums of questions and answers, slight modifications being made

to these later volumes of the Bournvita Book of Knowledge in the light of


experience. Over a quarter of a million books have been sent out over the
years.

Bournvita's brand share increased by 3 percentage points in each of the first


years of this

Promotional programme. Scores for the number of consumers buying only


Bournvita and no other competitive brand solidified to 46% in Calcutta, and
went as high as 68% in Delhi.

Comment

This is a first class example of sales promotion being used successfully in a


strategic role. 'Strategic’ as opposed to 'tactical' in the sense that the
programme ran over a lengthy period of time, several years. It was not just a
quick in-and-out tactical operation designed to solve a particular problem or
exploit a specific opportunity that had arisen in the short term. 'Strategic' too
in that the Book of

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

Boost is a energy drink which is very much favorite of children, boost


became favorite after they contracted Sachin Tendulkar to act in it
commercial saying that “boost is secret of my energy”. As the cricketer was
very famous among the children everybody wanted to be like him. A wide-
ranging review of the brand and its competition nonetheless indicated that
the positioning of Boost as an energy drink for children was correct. In-
depth qualitative research confirmed the strength of the advertising which
had used the theme of trains to communicate the proposition: 'Boost: the
energy fuel for an active life. Taken regularly it helps to improve both
physical and mental energy'. Boost came up with giving sachin autographed
miniature bat with it.

The famous boost train picture card promotion

Objective

To enhance brand equity by supporting theme advertising, and thereby


increasing brand

loyalty which would automatically result in increased sales.

The promotion

One of a series of 12 coloured picture cards was packed FREE in every


5OOgm pack of
Boost (the larger of two sizes) throughout the six-month promotional period.
These

picture cards illustrated famous trains from the history of railways around
the world. The

cards were contained in polythene pouches, 10 cm x 6.7 cm, sealed on all


sides.

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

consumer a further opportunity to collect all 12 cards. All 5OOgm packs


were flashed on

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

case of the 500gm refill pack.

Each picture card had a tear-off strip on its right hand side, printed with a
number

from 1 to 12. Sending in two of these strips qualified the consumer to


receive, FREE, an

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

of railways round the world; the beginnings of underground railways; the


advent of diesel
and electric traction; the development of commuter services; great railway
men; railways

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

different numbers from six different cards (these numbers corresponding to


the numbered

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

period, sales increased by 16.6 per cent. Against an estimate of 22,000


applications for

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.

Many children, as well as parents, wrote in expressing their appreciation of


the offer.

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

they encouraged their children to participate in.

Comment

Picture cards inserted FREE in a pack is a classic collection technique when


children are

the consumers but their mothers are the purchasers. By giving the picture
cards an

educational character the mother is encouraged to pass them on to her child,


and in turn

the child encourages the mother to make further purchases of the brand
offering the

picture cards - rather than a competitive brand - in order to obtain further


cards in 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, though allowance can be made for the swapping of duplicate


cards among
school friends. An activity which can give additional word of mouth
currency to 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

brand. They want to be in on this new collection craze too! An album in


which to insert

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

advertising campaign. This new method of sales promotion was not an


abandoning of all

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

Biscuits are something that doesn’t need an introduction as such. Almost


every family in India starts with the day with tea and biscuits in India.
Selling Biscuits in such market is very herculean task for the company.
Along with the major competitor in this segment are Parle and Britannia
there is a huge unorganized competition. Britannia has a variety of brands of
biscuits which are favorite of children. The biscuits cannot be sold merely by
trading with wholesalers and retailers, it requires directly to win the heart or
consumers mainly children. This requires a lot of advertisement and
promotional activities to be carried on with the actual selling process.

The market's domination by Britannia's premium varieties is quite


significant. In the last two years, the company has also stepped up
investments on products and brands to further strengthen its hold over the
market. Product innovation, involving the launch of brands such as Tiger in
the lower-end, Chekkers, JimJam, several varieties of the Cream Treat
brand, has been made by Britannia. Advertisement initiatives dovetailing
with such events as the World Cup, or with the holiday season, have helped
the company maintain its business edge.

The role of promotions for Britannia is especially important in this highly


fragmented and competitive market. Today, the company prides itself on
communication that is innovative, yet constantly able to strike a chord in the
consumers' hearts and minds. Britannia's promotions have virtually
redefined consumer expectations from this category.

Britannia uses both pull and push strategies

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.

This promotion was repeated successfully in 2002/03 with the destination of


choice being South Africa. Taking the success further was the promotion of
'Britannia Khao, Cricketer Ban Jao' that was fuelled by the need of every
Indian to be a part of the passion called cricket.

Britannia followed it up with another unique promotion, a vehicle that dealt


with Indian children other passion - movies. A promotion called 'Britannia
Lagaan Match' that revolved around a movie called Lagaan was based on a
cricket match. This promotion gave the children a chance to interact with the
film stars and also get to play cricket with them. The match had over 40,000
spectators and made the headlines of leading newspapers and news channels.

Britannia promotions have proved to the marketing world that promotions


per se need not be only tactical but could also be strategic - used as a tool to
further brand equity.

Britannia had an offer of collecting wrapper of biscuits and returning it back


for gift also uses its tiger, as mascot to promote the recent promotion with
the tiger biscuits is that children get free tiger scale, label and stickers.
Britannia ‘cream treat’ another brand from Britannia biscuits also is on of
the favorite among the children,. The company recently offered a white
marble free with every pack of Britannia Treat. The marble has a caricature
of an Indian Cricketer printed on it, an innovative conversion of craze for
cricket & cricketing stars exploited with a fresh perspective. Though marbles
are played at every nook and corner of India, they were never seen as an
exciting and happening game. The inclusion of the cricket factor has added
an adrenaline push to this game. The inclusion of cricket factor is sure to
boost the popularity of this game. Besides, the inclusion of cricketing
personalities has also made them a collector’s item among young children. A
excellent example of what a fresh perspective could do to a small product
like marble never seen as something very special among children. Britannia
gave free cartoon sticker with the 200gm pack and now they are giving a
free card toys with it.

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

Camlin-art material and writing instruments. Virtually every artist and


schoolgoer in India knows Camlin's products well. Its art materials and
geometry sets may be most prominent, but they are a small part of a 200-
product portfolio that caters to a wide market that ranges from housewives to
executives.

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

Cartoon Network, Frito-Lay launches “Cubi-Tazo” promotion

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

A sales promotion should not exploit the loyalty, credulity, vulnerability or


lack of experience of children:

• They should not be made to feel inferior or unpopular for not


buying a particular product;
• They should not be made to feel that they are lacking in
courage, duty or loyalty if they do not buy or do not encourage others
to buy the product.
• They should not be asked to disclose personal information
about themselves or their families without having first obtained
permission from their parents or guardians.
• Promotions should not undermine the authority, responsibility
or judgment of parents and guardians. Promotions should not include
any appeal to children to persuade their parents or other adults to buy
advertised products for them.
• A product that is part of a series should be clearly indicated as
such and should include the method of acquiring the series.
• Innovation should be there in the promotion strategy to survive
in the competitive market but the new concepts should be well
informative to children

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

Beyblades the free gift with Bournvita 500gms pack

Free toys gifted at McDonald [with happy meal]

Pokemon card free with Frito lays [Cheetos]


READERS PAGE

FRITOLAY INDIA takes kids for a


ride!

I would like to bring your attention towards an edible item


Masala Balls manufactured by Frito-Lay India and sold with
the brand name Cheetos MRP RS.10/- had the following
inscription on the backside of its cover.

GET A SURPRISE GIFT

Collect 3 of these coupons and send them to us at


Chester Cheetos, Post Box No. 27, DLF, Qutub
Enclave, Ph-1, Guragon-122 002.

Well send you an exciting Pokemon fun gift.


Bibliography

Books referred

1. Marketing management - Philip Kotler and Kevin Keller

2. Principle of marketing –Kotler and Armstrong

Webliography

• www.google.com
• www.thehindubusinessline.com
• www.indiainfoline.com
• www.mcdonaldindia.com
• www.estrategicmarketing.com
• www.cadburyindia.com