PBM Lesson 15

Types of promotions
PROMOTIONS Trade promotion Consumer promotion
PLANNING
Manufacturer Retailer Consumer
Consumer promotion
Lesson 15
Product & Brand Management
Jishnu Changkakoti
© 2020 Jishnu Changkakoti. All Rights Reserved.This material has been created for use in teaching students in class and cannot be shared in any public or commercial
1 forum. © 2020 Jishnu Changkakoti. All Rights Reserved.This material has been created for use in teaching students in class and cannot be shared in any public or commercial
2 forum.
Consumer promotions Trade promotions

Objective Typical programs Intended to gain trade support – Stocking, display, price, etc.
I Long-run (relationship building)

- Front Ended: On the total quantity bought
A. Awareness enhancement Sweepstakes, contests, tie-in. Nike sponsored 3-on-3 soccer - Back Ended: On the total quantity sold out to end consumer
tournament to build awareness of its soccer shoes
Objective Typical programs
B. Image enhancement Sponsorships - Vivo IPL, P&G Shiksha
II Short-run (transactional) I Transactional: increase stocking levels Volume allowances
Financing terms
A. Current consumers
Discount/price cuts
1. Buy more Volume discounts/special value packs
Slotting allowances/listing fees
2. Be more loyal “In pack” coupons, premiums, frequent buyer programs
3. Buy now Rebates, coupons II Transactional: increase sales efforts Advertising allowances
Display allowances
B. Occasional customers (deal prone, brand
Premiums
switchers)
Contests
Capture next purchase Coupons, displays, rebates
Sales force incentives
C. Non-consumers III Relationship building Free goods
Trial Trial sizes, sampling, exchange offers. Ford put certificates for one
month's free use of cars on chairs in business meetings. 25% of those
people bought the car.
4 forum.

Things to look for while assessing Promo in June
success of promotions 2015 2016
150
• Achievement vs. pre-defined objectives
• Uplift in sales during promo period vs previous period & same period last year
• Sales of promo+ subsequent period vs. previous period & same period last year 112.5
• Any cannibalisation of other SKUs due to the promotion

• Return on promotional spends(ROPS/ROI)
75
• Non-financial checks:
• Is the promotion in line with the brand positioning?
• Is it in line with the strategic objectives of the brand? 37.5
• Will it add to the equity of the brand or detract from it?

0
January February March April May June July August September October November December
6 forum.
Examples of successful promotions Examples of successful promotions

Background Background
• Andrex is a market-leading tissue brand in the UK. • Weetabix is a leading brand of wholegrain breakfast cereals
• The puppy is their brand symbol, and has been used in their advertising • In 2002, they overtook Kellogg's to become the #1 brand in UK
for over 40 years The promotion
The promotion • A Weetabix House was created online with multiple rooms
• Send 4 proofs of purchase + £2 & get a beanie puppy • The rooms were filled 3500 prizes that consumers could get - cars in garage,
refrigerators, washing machines - all top brands
• You can name the puppy & get a birth certificate with its name on it
• It was looked after by Fred, the security guard, and Doris the housekeeper
Results
• There were codes inside Weetabix packs. A consumer had to feed in the code on the
• 400,000 beanie puppies were expected to be redeemed; actual site, Fred would verify it, and the consumer could enter the house, check all the rooms
redemption was 1 million+ and select the gift she wanted
• Market share increase of 3% Results
• 12 million rolls of Andrex sold, with 12.5% increase in purchase • Record sales increase of 7%
frequency
• Average weight of purchase also increased by 7%
• 730,000 participants, spending an average of 8 minutes on the site
8 forum.

Coke Zero Drinkable Ad!
Thank You
10 forum.
Display Contest
12 forum.
Retailer Incentives Paid Displays
14 forum.

PBM Lesson 15

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PBM Lesson 15

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Types of promotions

PROMOTIONS Trade promotion Consumer promotion

Product & Brand Management

Consumer promotions Trade promotions

I Long-run (relationship building)

Things to look for while assessing Promo in June

success of promotions 2015 2016

• Any cannibalisation of other SKUs due to the promotion

• Will it add to the equity of the brand or detract from it?

Examples of successful promotions Examples of successful promotions

Coke Zero Drinkable Ad!

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