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.
- When Dove was launched in the market, people had a certain reservation against the product. Why?
There were two reasons:
a. Price factor. Most housewives found Dove to be pretty steep and thus consumption was restrained.
b. Secondly, the rumours of one of its ingredients being animal fat.
HLL began a sales promotion campaign: Get Dove soap free with a kilo of Surf Excel. With this promotion tactic, HLL got the opportunity of converting “non-users” of Dove to users. At the same time changing attitudes of other detergent users by converting them to Surf users.
- Whisper, right from the time it launched its first product has been doing a lot of sales promotions to stimulate trial purchase. The main tool used by it is sampling. They have done door-to-door sampling, sampling through schools, newspapers, etc. even now after so many years of its launch it does sampling because of the new target base that gets added every year.
- 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.
- McDonald’s India have targeted a lot at the kids. To keep them coming in again and again they introduced the happy meal concept where they used to give away different toys every week. And they advertised about it saying collect your entire set of toys. This concept really worked and has shown a tremendous increase in the sales and is presently an integral part of their marketing strategy.
§ Jet Privilege
Jet privilege is a rewarding and customer friendly frequent flyer programme in the country as a jet privilege member one can earn JP miles not only on jet airways but also from many other programme partners of the programme.
¨ 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, Fairglow, buy 3 get 1 free, Lux buy 3 get 1 free, Rexona buy 3 get 1 free, Godrej Nikhar buy 3 get 1 free, Dove get 3 at a reduced price, buy 2 get Lakme fairness cream free, they generally end up buying more then what they intended to. They often stock up products at the time of sales promotions.
¨ Introduce a new brand
Because sales promotions can attract attention and motivate trial purchase, it is commonly used for new brand introductions.
Fairglow has effectively used sales promotions to introduce its brand, by doing a lot of sales promotions like the buy 3 get 1 free, also Fairglow free with Good Knight, with other HLL products.
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.
Promotion: Hero No.1
Objective: The promotion wa sales promotions a part of Pepsi’s efforts to counter Coke’sales promotions aggressive marketing in thses cities
City: Kanpur and lucknow
Strategy: The event spread over a seven-day activity right after the dance masti promotions. A mobile float with dancers, performers, and still walkers traveled the streets of Kanpur and Lucknow. The entertainment was based around the theme of Hero No.1
- When Godrej did sales promotions to increase it washing machine sales Samsung to protect its market also introduced sales promotions.
Godrej gave a rebate offer and a free VIP suitcase. So Samsung also introduced the rebate offer and gave a camera free.
¨ 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.
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