Synergizing Marketing Communication (SMC)

Assignment Topic GLOBAL MOVE TO REDUCE SUGAR

Student Name B.M.A. R. Bandaranayaka

Reg. No. 0000037705

December 2019 Examination

Postgraduate Diploma in Marketing

Sri Lanka Institute of Marketing

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 A GLOBAL MOVE TO REDUCE SUGAR

BACKGROUND
After two years of development, Nestle Australia launched its new cane sugar-free Milo with
30% less added sugar.

The new recipe contains malt barley, milk powder and cocoa like the original Milo, but replaces
cane sugar with stevia for sweetness and a soluble corn fibre for texture, so that the new
version looks, tastes and behaves like the original.
The General Manager of Nestle Australia – Andrew Mclver said this recipe was formulated in
response to consumer concerns about added dietary sugar, especially from a family context,
and conceptualized it as an option that ‘encourages people to drink milk, but delivers it with less
added sugar’.

The new product will be priced higher than the usual Milo. Milo 30% less sugar is priced at AUD
6.99 for 395 g, whereas the original is AUD 6.99 for 460g.

Mclver said; “as much as we wish we could produce it for the same cost, it’s quite a bit more
expensive to produce as the ingredients cost more, it’s much slower to make, and the
production runs are smaller. However, with its great taste, it will represent terrific value”

Source: www.williamreed.com

Your role
You have been promoted to the role of Manager - Sales Promotions of a beverage company that
operates in Sri Lanka, who produces dairy products and frizzy drinks. The Director - Marketing of
your company has requested you to submit a report on the following areas as you begin your
new role.

TASK ONE

Provided the company decides to launch a sugar free dairy product to the local market,
recommend and justify types of sales promotions that should be used. The promotions
recommended should be rationalized with successful campaigns run by Sri Lankan or
international companies.

Guideline Note 02

- It is important to show your understanding of type of sales promotions

- Decide on a product that fits the task
- Your justification for your recommendations is important
- Industry examples are expected

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TASK TWO

As the message theme of an advertisement outlines the key idea of the advertisement, the
theme is created by a message strategy. Namely; Cognitive strategies, Affective strategies and
Conative strategies.

Design a message theme for the product discussed in task one.

Guideline Note 02

- Industry examples are important

- It is important to demonstrate your understating of the types of message strategies

TASK THREE

3.1 Explain how the message strategies described in task two can be connected with the
Hierarchy of Effects Model in general.

3.2 Explain the application of Hierarchy of Effect Model for your chosen strategy with examples.

Guideline Note 4

- Continue in report format

IMPORTANT:

Please refrain from copying-and-pasting information from the Internet or another source and
make sure to reference your work according to the Harvard referencing format.

Task Content Weightage

Task one 35%
Task two 35%
Task three 30%
Total ( word count 2000 – 2500) 100%

Note: Please refer the given assignment marking scheme for marks allocation.

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 ASSIGNMENT CHECKLIST & DECLARATION

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Signature: _________________ Date: _________________

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 Assignment Marking Scheme
December 2019

Subject Synergizing Marketing Communication (SMC)

Student Registration Number 0000037705

Marks
Criteria
Allocated Awarded

Aligning to the purpose of the assignment 20

Some of the answer addresses to the purpose of the question 1-5
This has addressed the purpose of the assignment 6-10
Has addressed the purpose of the assignment coherently 11-15
This has addressed the purpose of assignment comprehensively 16-20
Clarity of expression 20
An attempt to organize in a logical manner 1-5
Satisfactory showing of logical manner and organization 6-10
Shows higher level of Carefully and logically organized 11-15
Shows coherent structure with clearly expressed ideas 16-20
Using examples/evidences 20
Shows a little use of examples 1-5
Some use of examples. Some evaluation attempted 6-10
Some use of examples. Well evaluated 11-15
Shows appropriate examples are fully and reliably evaluated 16-20
Critical analysis of concepts, theories, conclusions 20
Demonstrates limited evidence of critical analysis 1-5
Demonstrates some critical analysis of relevant theory 6-10
Demonstrates application of theory through critical analysis 11-15
Demonstrates application of critical analysis well integrated 16-20
Following assignment guidelines 20
Limited follow-up of assignment guidelines 1-5
Some level of follow-up of assignment guidelines 6-10
Good display of adherence to assignment guidelines 11-15
Excellent adherence to assignment guidelines 16-20
Total
100
Special Remarks

Signature of the Examiner

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 Acknowledgement
I Am Undergraduate Student Of The Sabaragamuwa University Of Sri Lanka,and I
am Studying Marketing Management as My Degree Program (Bsc. Honours In Marketing
Management Degree [Four Year Degree]).

Even the University Studies I Thought Join to Slim Business School to Enhance My
Academic and Professional Qualification Then I Choose the Postgraduate Diploma in
Marketing. And Also, I Would Like to Pay My Sincere Gratitude to Many Individuals Who
Have Given the Support to Complete This Assignment.

First At All I Wish To Express My Sincere Gratitude To Lecturer Mr.Priyantha Neelawala

Who Has Given A Lot Of Encouragement, Valuable Advices And Guidance To Complete
This Assignment Successfully.

And Also I Would Like To Thank Mr.Pawan Hettiarachchi, Mr.Numesh Kalhara And Mr.
Aravinda Lorensuhewa Of SLIM Matara Branch For Their Valuable Support Throughout
This Assignment And My Studies.

Further I Wish to Thank My Friends of PGDIP Managerial Level- Diploma in Marketing, To

the Great Support and Sharing Knowledge During This Assignment and My Studies.

Finally, It Is My Privilege to Express My Gratitude to My Parents and My Family

Members for The Understand and Endless Support Throughout This Period.

B.M.A.R Bandaranayaka

Reg. No.0000037705

Student- Managerial Level- Diploma in Marketing

Postgraduate Diploma in Marketing

SLIM-Matara.

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 Executive Summery

This assignment, which is given under the subject of SMC, consists of three parts, the first part
of this Selecting an organization and sugar free product which company and design a sales
promotion campagna for launch that particular product into market. Accordingly, that Nestlé
Lanka PLC is the company I have chosen.

Nestle Lanka PLC is a Sri Lanka-based company engaged in manufacturing, marketing, selling
and distribution of food and beverages products. The Company is involved in the export of
locally manufactured food and beverage products. Its production facility is located in
Kurunegala, which manufactures over 90% of its products sold in Sri Lanka. Its dairy brands
include Nespray Every day, Nespray Nutri Up, Milkmaid and Coffee-mate.

The world is moving on to non-sugar products and it has become a trend. However, according to
the above scenario, as the product that will be released to the market free of sugar, a yogurt has
chosen that could be used even for diabetic patients. It was dubbed "Milky Yogurt" and used
"Let's Take Health Seriously" as a slogan for its promotion.

Under the first task, need to plan a sales promotion campaign to win the market for this particular
product. Accordingly, the project is designed to include the Trade Promotion and Consumer
Promotion Tool.

Under the second task we developed message theme under the Cognitive strategies, Effective
strategies and Cognitive strategies with the industrial example and explaining how above
strategies affect to our promotion champagne.

Under task three, explaining how the message strategies connected with the Hierarchy of Effects
Model with explanation related to our specific product with the application of Hierarchy of
Effect Model

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 Table of Contents

Title of the Section Pages

Nos.

Acknowledgement 7
Executive Summery 8
Table of Content 9

Task 01: Introduction 11

1.1. Sales Promotion 11

1.1.1 Trade Promotion Tools 11
1.1.2 Consumer Promotion 13
1.2. Conclusion 13

Task 02: Message Strategy Introduction 14

2.1. Cognitive strategies 15

2.2. Affective strategies 16
2.3. Conative strategies 17
2.4. Conclusion 17

Task 03: The hierarchy of effects model Introduction 18

3.1. Message strategies with the Hierarchy of Effects Model 19

3.2. Hierarchy of Effect Model Strategy with examples 20
3.3. Conclusion 21

Reference 22

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TASK 1

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1. Introduction

The world is moving on to non-sugar products and it has become a trend. However, according to
the above scenario, As the given role of the assignment, I am the manager of one of the leading
dairy products company in Sri Lanka, where the Director of Marketing is required to submit a
report. Accordingly, a practical sales promotion should be planned to win the market for the
Sugar-Free product we are offering to the market, mainly focusing on the local market.

Selected Product and Company

Accordingly, I intend to make a sales promotion for a sugar free YOGURT that Nestlé Lanka
PLC plans to release.

1.1. Sales Promotion

Sales Promotion is a most commonly used phenomenon in today’s business world. Its two-way
benefit is that it helps to increase sales as well as it increases customer loyalty. So, most of the
business firms consider it as an important marketing tool.
Sales promotion is the activity that provides special incentives to bring about immediate
response from consumers, distributors and organization’s sales force.
Sales promotion activities can be divided into two broad categories: consumer promotions and
trade promotions. Consumer promotions refer to those activities that are designed to stimulate
consumer purchase, in effect to help pull the product through the distribution channel. Common
type of consumer promotion activities includes coupons, free sample offers, contests, cash-back
offers, and a variety of frequent buyer programs. Trade promotions refer to those activities
designed to encourage distributors to purchase additional volume and provide additional support
to stimulate consumer purchase. In effect, trade promotions help push the product through the
distribution channel. Common types of trade promotion activities include price discounts and
allowances, co-operative advertising funds, and point –of –purchase display materials.

Major Sales Promotion Tools Recommended for a New product

Nestlé Ceylon PLC Can be use two types of sales promotion:

1. Trade promotion
2. Consumer promotion

1.1.1. Trade Promotion Tools

Nestlé Ceylon PLC. uses trade promotion to persuade its retailers to carry its brands, give it shelf
space, promote it in advertising and push it to consumers.

Shoppers
Nestlé
Distributors Retail Outlet +
Ceylon PLC
Consumers

Communicates to the Retailers

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In Nestlé Ceylon PLC Product supply chain consists of Nestlé itself, distributors, retain outlets or
traders, and shoppers and consumers. Distributors collect the product from the Nestlé factory at
net product price. Nestlé has 78 distributors around the country. Then they sell it to the retail
outlets at a price including their commission. Then the retail outlets or traders sell the product at
maximum retail price.
In Nestlé trade promotions are directed towards the retailers. They persuade them to sell more
and more and receive special benefits. Then retailers encouraged to purchase more and more
products and push them to the ultimate shoppers or consumers. Following techniques, they most
frequently use as trade promotion:

▪ Cash discount
In this method retailers are encouraged to purchase a large volume of product at a discounted
price. Nestlé set the conditions to get the discount. When a retailer purchases a fixed amount of
product then he becomes eligible for the discount. For example, Normal price of per case of our
Sugar Free YOGURT is LKR 480. They may ask retailers to buy 5 cases at a time at LKR 400
per case.

▪ Free products
By following this technique Nestlé offers retailers free product on a fixed amount purchase.
Retailers are asked to purchase a fixed amount of product to get the free product. For instance,
they may asked to the retailers to purchase five cases of Sugar Free YOGURT to get two cup of
YOGURT extra with each case.

▪ Special Drive
In this technique Nestlé encourage the retailers to sell more and more product throughout the
season. In return they attractive benefits to them. Sometimes they offer special trip, and other
attractive prizes.

1.1.2. Consumer Promotion

In Nestlé Ceylon PLC. uses consumer promotion for encourage purchase from the customer and
create long term relationship with the customers.

Shoppers
Nestlé
Distributors Retail Outlet +
Ceylon PLC
Consumers

Communicates directly to the target market

In consumer promotion Nestlé communicate directly to its target market then the purchasers
come to the retailers and demand the product. So, it is a pull process for them. In this promotion
distributors and retailers don’t get any benefit. All benefits enjoyed by the consumers. Most
commonly used consumer promotion tools for Nestlé are following:

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 • Premium
Sometimes Nestlé offers special gifts to the purchasers to encourage prompt purchase. This gift
may be related to the product or may not be related to the product. For example, sometimes they
offer ‘Coffee Mug’ with NESCAFE or small bowl with MAGGI soup like this we can use some
small toy or giveaway use to encourage purchase of our sugar free YOGURT.

• Contest
In this method calls for consumers to submit an entry – essays, drawings, or other creative
activities to be judged by a panel that will select the best entries. Often the condition is that an
empty pack of that particular product have to be attached with the entry.

• Cash discount
In consumer sales promotion we can offers cash discount for the consumers. In this technique
they reduce the price of the product to get the higher sales volume or new customers for the
product. For example, sometimes the reduce the price of our sugar free YOGURT for a particular
period of time.

1.2. Conclusion

Finally, we can say that In Nestlé Ceylon PLC can be use as describe above for a success of sales
promotion activities perfectly. By using valuable marketing tools, they are creating competitive
advantage for themselves which ultimately helping them to reach their marketing as well as
organizational objectives. Again, their successful sales promotion program is making profit as
well as customer base for their company.

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TASK 2

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 02.Message Strategy Introduction

The message theme, or the outline of the key ideas in the ad, is a central part of the creative brief.
The message theme can be created using a number of message strategies and also a message
strategy is the primary tactic or approach used to deliver the message theme.

There are three broad categories of message strategies:

2.1. Cognitive strategies

A cognitive message strategy is the presentation of rational arguments or pieces of information to

consumers. These ideas require cognitive processing. When a cognitive message strategy is used,
the advertisement’s key message is about the product’s attributes or the benefits. Customers can
obtain these benefits by using the product.

The goal of the cognitive message strategy approach is to design an ad that will have an impact
on a person’s beliefs and/or knowledge structure.
This can be accomplished by suggesting any one of a wide variety of potential product benefits.

As an example, our sugar free YOGURT (Milky Yogurt) may be described as healthful, pleasant
tasting, or low calorie, No sugar.

As well as under this strategy we can mention the company name. Because to company name
is very famous in the local market .as a result, consumer doesn’t feel that, this is a new product /
company. This unique selling proposition & highlight the superiority of the company

Under pre-emptive strategy I’ll suggest to highlight the “Sugar Free” icon and "Let's Take
Health Seriously" as a slogan in the advertisement because that will create rational argument
with consumer brain specially who are suffering from diabetic.

Generic messages, which are direct promotions of good or service attributes or benefits without
any claim of superiority. They work best for a firm that is clearly the brand leader and dominant
in the industry within which it operates.

Preemptive messages, which are claims of superiority based on a specific attribute or benefit of
a product. Once made, the claim normally preempts the competition from making such a
statement.

A unique selling proposition, which is an explicit, testable claim of uniqueness or superiority,

which can be supported or substantiated in some manner.

Hyperbole, which is an untestable claim based upon some attribute or benefit.

Comparative advertisements, which is when an advertiser directly or indirectly compares a

good or service to the competition. The competitor may or may not be mentioned by name in the
advertisement.

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 2.2. Affective strategies

Affective message strategies invoke feelings or emotions and match those feelings with the good,
service, or company. Such ads are prepared to enhance the likeability of the product recall of the
appeal, or comprehension of the advertisement. Affective strategies elicit emotions that, in turn,
lead the consumer to act, prefer- ably to buy the product, and subsequently affect the consumer’s
reasoning process.

Affective strategies fall into two categories:

Resonance
Resonance advertising attempts to connect a product with a consumer’s past experiences in order
to develop stronger ties between the product and the consumer.

Industry Example as follow;

Emotional.

Emotional advertising attempts to elicit powerful emotions which eventually lead to product
recall and choice, including trust, reliability, friendship, happiness, security, glamour, luxury,
serenity, pleasure, romance, and passion.

Industry Example as follow;

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 2.3. Conative strategies

Conative message strategies are designed to lead more directly to some type of consumer
response. They can be used to support other promotional efforts, such as coupon redemption
programs, Internet “hits” and orders, and in-store offers such as buy-one-get-one-free.

As example a conative strategy can be implement in any television advertisement for our sugar
free YOGURT that seeks to persuade viewers to call and get free promo code for their purchase,

Action-inducing conative advertisements create situations in which cognitive knowledge of the

product or affective liking of the product may come later or during product usage.

For instance, a point-of- purchase display is designed to cause people to make impulse buys. The
goal is to make the sale, with cognitive knowledge and affective feelings forming as the product
is used.

In terms of an attitude sequence, conative message strategies typically

utilize the conative → cognitive → affective approach.

Promotional support conative advertisements are used to support other promotional efforts.
Besides coupons and phone-in promotions, a company may advertise a sweepstakes that a
consumer enters by filling out the form on the advertisement or by going to a particular retail
store.

2.4. Conclusion

Three types of message strategies as described Each may be used to help convince the consumer
to make a purchase, either through reason, emotion, or an action-inducing advertisement.

Second, the major types of executional frameworks are noted. These forms of advertising
presentations help the creative prepare original, convincing, and memorable ads.

Third, the four types of sources or spokespersons that appear in various advertisements are
described, and the criteria used to select them are reviewed.

Fourth and finally, the principles of effective advertising campaigns are presented. When
advertisements are combined with other elements of the promotions mix in an integrated fashion,
the net result is a stronger company image and a clear IMC theme.

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TASK 3

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 03.The hierarchy of effects model Introduction

The hierarchy of effects model is a model which tells advertisers to make an advertisement in
such a way that the customer goes through all these six stages namely awareness, knowledge,
liking, preference, conviction and purchase. It is created by Robert J Lavidge and Gary a Steiner
in 1961, the hierarchy of effects model suggests six steps to consumer buying behavior.

3.1. Message strategies with the Hierarchy of Effects Model

Lavidge and Steiner further grouped these six stages into three main stages of consumer
behavior:

1. Cognitive
Also called the “thinking” stage, this is where the consumer gathers knowledge about the
product and becomes aware of it. This can be said to be a rational step where pros and cons,
product specifications etc. of a product are evaluated.
As I mentioned above cognitive message strategies, we can use for change customer
thinking pattern towards our product.

2. Affective
Also called the “feeling” stage is when the consumer starts developing a liking for the product,
and may even develop strong positive (or negative) feelings toward it.
Under this strategy we can encourage customer using Resonance and Emotionally
towards our product positively. its really affect for their buying action.

3. Conative
This is the “behavior” stage of the process. This is when the consumer, after weighing the
pros and cons, and deciding his/her preference actually buys the product.

In this stage we can use above mention strategy for empower customer to buy our product.
This is the most important stage in message strategy.

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 3.2. Hierarchy of Effect Model Strategy with examples

The hierarchy of effects model is a model which tells advertisers to make an advertisement in
such a way that the customer goes through all these six stages namely awareness, knowledge,
liking, preference, conviction and purchase.

Awareness This is the most crucial step and the starting point for purchase. Brands must make
sure that the consumer is aware of the presence of your brand in a particular product segment.

For example, if dewika Desire to buy a YOGURT, but she suffering from diabetic and you as the
marketing manager of Nestlé Lanka PLC, wants she to buy our brand’s Sugar Free YOGURT,
you have to make sure that you advertise well so that he/she is aware of the existence of such a
brand for Sugar Free YOGURT.

Knowledge This is where your product will be evaluated against other brands by the consumer.
Make sure enough knowledge is available about your product – through the internet, retail stores
and the product package itself.

For example, now dewika, aware that there is a Nestlé brand will try figure out what unique
features and benefits you are offering rather than any other brand Sugar Free YOGURT.

Liking This is where the consumer builds a liking to your product. This is where your product is
being considered for its emotional benefits; be sure to make them prominent.

For example, now dewika has evaluated the pros & cons of buying a Sugar Free YOGURT form
Nestlé Lanka PLC but might not like the color of it, or might feel that this is for the elderly. As
the marketing manager of Nestlé Lanka PLC, you have to make sure that these features, that
leave emotional impact, are taken care of properly in the marketing communication program.

Preference By this time consumer may be convinced to try out your product, but may like other
brands of YOGURT too. So, what is it that will make her prefer Nestlé over the other brands?
These points of differentiations or unique selling points need to be highlighted to make sure that
the consumer likes your brand more than the others in her consideration list.
For example, Dewika now may be actually considering buying a Sugar Free YOGURT under the
Nestlé Lanka PLC brand. But is she thinking that she’ll buy it to try it only or is she thinking that
the next buy will also a Sugar Free YOGURT from Nestlé Lanka PLC.

Conviction This is the stage where the doubt in consumers’ minds about buying the product of
our brand needs to be converted into action. Marketers can aid in this step by giving out free
samples, test drives etc. This step should also decide if the consumer will stick to our brand
i.e. actually, buy Sugar Free YOGURT from our brand, or switch after testing the sample.
For example, Dewika tried the Sugar Free YOGURT we gave her for a month and then when
time came to buy one, she bought another brand. Make sure that doesn’t happen and that trial
builds loyalty. Incorporate such unique features like taste, smell, health benefit in our brand that
will encourage purchase.

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Purchase The last and the most crucial stage of the consumer buying cycle is the purchase. We
need to make sure that purchase experience is easy and perhaps even enjoyable for the consumer.
Some of the ways to encourage purchase is by keeping simple and multiple paying options,
making the product available easily, easy to understand usage instructions, offers etc.

For example, now that Dewika has decided to buy your brand after trying it, make sure she
knows where to buy it from and how she can pay. we may also give her a cup of YOGURT free to
delight her.

3.3. Conclusion

Cognitive, affective, and conative strategies can be matched with the hierarchy of effects
approach described in the previous chapter. The hierarchy of effects model suggests that
consumers pass through a series of stages, from awareness to knowledge, liking, preference,
conviction, and finally to the purchase. Choosing the right message strategy is a key ingredient in
creating a successful advertising program. To be effective, the message strategy must be
carefully matched with the leverage point and executional framework that have been selected as
well as with the media that will be utilized.

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Reference

• Official Website Nestlé Sri Lanka. (2019). Retrieved November 9, 2019, from
Nestlé website: https://www.nestle.lk/
• Pathumsha, H. (n.d.). Dairy Industry trends in Sri Lanka. Retrieved from
http://repository.kln.ac.lk/bitstream/handle/123456789/16732/J%20of%20Ec
onomics.25-31.pdf?sequence=1&isAllowed=y
• Mohan, B. C., & P, A. (2020). Cognitive, Affective and Conative Concepts as an
Antecedent to Parental and Child Purchase Influence Strategies-Observational
Evidences. International Journal of Business Innovation and Research, 1(1), 1.
https://doi.org/10.1504/ijbir.2020.10019495

• Clow, K. E., Baack, D., Australian Broadcasting Corporation, Australian Film

Finance Corporation, & Dee Cameron Company. (2014). Integrated
advertising, promotion, and marketing communications. Boston: Pearson
Education.

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