Submission on Sales Promotions

Prof- Surya Mahadevan

Prof- Jayanthi Thanigan
SM C-1 On Balance, what is the right choice?

Submitted by
Group 1
Achal Jain- 20M102
Akash Biswas-20M103
Kartik Dhotey- 20M120
Kashish K Kandhari- 20M122
Laveena Jethani- 20M125
Vatsal Pant- 20M155
1- Evaluate the pros and cons of each idea.
Idea 1

PROS
 Trail pack costing Rs. 10 would be
20 rupees cheaper than what would
normally be charged hence the
scheme could come off as a
discounted scheme as well
CONS
 Same could also be a con as
customers might be reluctant to
purchase a trail product in the first
place

Idea 2

PROS CONS
 Higher spread due to the pack being  Could result in high level of wastage
free due to a higher distribution time
and the products getting expired
 Easier to achieve target  Long distribution time

Idea 3

PROS CONS
 Fast distribution  Could result in higher sales for other
brand also as the pack comes free
with all other washing powder packs
 Offers opportunities to customers
that are loyal to other brands as
well
 Higher reach with distribution
spread across all retailers

Idea 4

PROS CONS
 Unbiased technique of delivering a  High costs due to high variable costs
product like service charge, advertisements,
and etc
 Free of cost  Increases the scope of wastage as
packs can get damaged in the
process
Q2. Please come up with a fifth idea that’s better the first 4.
Creating a Trial Pack of 100g and giving it free with a larger pack of the Regular Tide
detergent powder, while giving the retailer a service charge of 7 rupees per pack. This is an
extension of the already given idea of providing a trial pack of Tide Jasmine with any
detergent powder however it gives a higher incentive to the retailer to push the Tide
Product. Additionally, it focuses on more sale of Tide products instead of any other
detergent. In the previous case a customer could have bought any pack of their preferred
detergent, however, in this case they will be more incentivized to buy the Tide Product. This
will not only create additional sales for the Tide products but also attract consumers who
are already purchasing Tide regular to go for the newer Jasmine Variant.
Thus, not only will it increase the revenue for existing products, it will also create more
awareness of the new Jasmine variant while creating long term customers for the same.
Also, the higher incentive given to the retailer shall be compensated by the increased sale of
Tide Products. Thus, this will be an ideal promotion to launch the product so that there is
optimized sales along with targeting the exact group of consumers who would be interested
in buying detergents.
Q3. Please come up with an execution design to improve on first 4 ideas in terms of
impact/outcome?
Idea-1: Create trial packs of 100g----to Time required to make an impact:90 to 180 days to see
enable 6 bucket wash trials by an average sales reflection
household. Sell the trial packs thru a Impact on channel:- negative initially but later they will
home to home campaign at Rs.10 per support as blind test results are exceptional
sachet. (500g pack price is Rs.150 and
Impact on customer:- Positive as it is relatively less
hence the sample pack price is a winner).
Plan for 20 lakh trial pack sales. Expected priced
productivity is 40% .The agency will Possible wastage—how to control :- Mixing with regular
charge Rs.1 per call. In each region one detergent will dilute the effect of campaign.
agency is available and each agency can How can the scheme design be improved:- A trial pack
make the 5 lakh calls over 90 days. promotional campaign with pricing at 20 cam be good
The VC per 100 g of product is Rs.10 choice.
including taxes – even when product is
issued free the company had to
declare/list the cost price and pay taxes.

Idea-2: Create a 100 g trial pack and give it
free from large format retail shops. Plan
for 20 lakh trial pack sales. From each
store we can target 500 trial pack
distribution per day. The store will charge
a daily rental of Rs.1000 for the activity
and we need to spend Rs.300 per
promoter. For 20 lakh trial packs 4000
demo days were required. They have
planned to enlist 50 stores.
Time required to make an impact:90 to 180 days to see
sales reflection
Impact on channel:- Retailer will support as it could be
earning source
Impact on customer: - NA
Possible wastage—how to control :- May be some
retailer may not push the product
How can the scheme design be improved:- tracking
retailer work is important.

Create a 100 g trial pack and ask all Time required to make an impact: Quickly
retailers to give it free with any washing implementation
powder the customer bought. Give Impact on channel:- Retailer will support as it could be
retailer Rs.5 as service charge per pack.
The distribution can be completed in
about 10 days.
Idea-4: Attach the 100g trial pack with a
newspaper and distribute. Give the
publication and agent Rs.7 as service
charge. In addition the newspapers
demand an advertising to be released on
the day the free pack is distributed and
this would cost Rs.80 lakhs in the
aggregate
earning source
Impact on customer: - will take positively as its free of
cost, however they should understand its trial purpose
only
Possible wastage—how to control :- Retailer side
execution
How can the scheme design be improved:- tracking
retailer work is important, bundled with some fast
moving product like washing soap.
Carefully selection of retailer is important
Impact on channel:-No effect
Impact on customer: - Messaging will be clear and reach
will be perfect.
Possible wastage—how random customer will use
How can the scheme design be improved:- Only
implementing in urban areas.