Consumer Promotion & Trade Promotion

PROJECT ON

CUSTOMER PROMOTION & TRADE PROMOTION

SUBMITTED BY Group Member Ajay Joya: Pooja Malhotra: Navjot Singh: Neha Sharma: Akash Singh: Roll No 2011071 2011093 2011115 2011151 2011158

SUBMITTED TO: PROF. Ritika Vora MMS-II (SEM III) YEAR 2011-2013

LALA LAJPATRAI INSTITUTE OF MANAGEMENT MAHALAXMI, MUMBAI - 400034

Consumer Promotion & Trade Promotion

Sales Promotion
Sales promotions include a variety of method designed to induce response from consumer for a short time. The objectives of sales promotion are: Building Product Awareness Creating Interest Providing Information Stimulating Demand Reinforcing Brand

Sales promotions can be classified into various types like: 1. Customer Promotion. 2. Trade Promotion.

Customer Promotion
Consumer Promotion includes a variety of short term method to induce response from customer. Most Consumer Promotions are directly associated with purchasing of product. This is achieved by enhancing the value of product by selling it at lower price or by give to the customer at the regular price of the product. Consumer Promotion are used majorly to increase immediate purchase. Various types of Customer Promotions: Coupons Coupons offer customers price saving or other incentives when the coupon is redeemed during the time purchase. Coupons carry an expiry date which means they are short term in nature.

Consumer Promotion & Trade Promotion

Example: Eg. Fair and Lovely dark circle removal cream to create more product trials has coupons in the newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack. Trade-In Trade-In allows customers to obtain goods at a lower price by exchanging a old product that the customer already possess with a new one. Old products can be resold to extract value. Rebates Rebates are similar to Coupons; they offer value to the customer by lowering the cost of buying a product but they differ in many aspects. They are offered only after a purchase is made. They require personal data in order to obtain benefits. Rebates are generally used for high value products. Promotional Pricing Over here the price of the product is reduced for a short period to boost sales. This can have immediate impact on the demand for the product. Loyalty Programs Price discounts and free products offered to customers for frequent purchasing is called Loyalty programs. Loyalty programs are found in numerous other industries, including grocery, pizza purchasing and online book purchases, where they may also be known as club card programs since members often must use a verification card as evidence of enrolment in the program. Sampling Giving away samples of products gives customers opportunity to experience the product without buying it. This method is useful for getting a customer trying a new product for the 1st time.

Consumer Promotion & Trade Promotion

Sampling Techniques 1. In- Store Sampling Example: Lakme has in-store trail products. Since it in the cosmetics market it is very essential to provide samples, many stores in Mumbai from time to time have Lakme sampling offers. Where they allow you to try the product and then buy it. 2. Newspaper Sampling Example: Pantene have done sampling through the newspapers through giving out small sachet of Pantene. 3. On-Package Sampling Example: Fairglow, a lot of free Fairglow soaps were available with many other products, especially other HLL products. Premiums Low cost products that are offered for free are called Premiums or Give Away. Premiums
differ from samples and free product in that these often do not consist of the actual product, though there is often some connection. For example: A Cell phone manufacturer may offer access to free downloadable ringtones for those purchasing a cell phone.

Contests & Sweepstakes Contests are special promotions awarding value to winners based on skills they demonstrate compared to others. For instance, a baking company may offer free vacations to winners of a baking contest. Contest award winners are often determined by a panel of judges.

Consumer Promotion & Trade Promotion

Sweepstakes or drawings are not skill based but rather based on luck. Winners are determined by random selection. In some cases the chances of winning may be higher for those who make a purchase if entry into the sweepstake occurs automatically when a purchase is made. But in most cases, anyone is free to enter without the requirement to make a purchase. Example Sweepstakes are based on Luck; winners are determined by random selection. It may or may not require you to make a purchase. Eg During a promotional event Hotwheels filled a jar with random number of Hotwheels cars, anyone who made a purchase of Rs 199 could guess the exact number of cars or came closest would get all the cars displayed in the jar.

Consumer Promotion & Trade Promotion

Trade Promotion

Certain promotions can help "push" a product through the channel by encouraging channel members to purchase and also promote the product to their customers. For instance, a trade promotion aimed at retailers may encourage retailers to instruct their employees to promote a marketers brand over competitors offerings. With thousands of products competing for limited shelf space, spending on trade promotion is nearly equal that spent on consumer promotions. Objectives of Trade promotion: Gain new distribution Obtain support for Consumer Promotion Build Trade Inventory Improve Trade relations

Consumer Promotion & Trade Promotion

Types of Trade Promotion: Point of Purchase Displays POP displays are specially designed to be placed in a retail store. They allow products to be displayed prominently in retail store where traffic is high Advertising Support Sometimes marketers offer financial support to retailers for advertising. Retailers who include certain companys product in their advertising benefit from this as the marketer may pay for the entire advertising cost or offer partial support. Trade Allowance Allowance given to retailer to stock, promote the product by giving attractive shelf space or location. Sales person of the retailer may also be asked to push the product to the customer. Allowance can be in the form of price reduction or buy back guarantee. Push Money Since sales promotions are intended to stimulate activity that leads to meeting promotional objectives, it makes sense that these can also apply to those in a channel members organization who also affect sales. Thus, a marketer may offer sales promotions to their resellers sales force and customer service staff where they are used as incentives to help sell more of the marketers product. Sometimes called Push Money, these promotions typically offer employees cash or prizes, such as trips, for those that meet sales requirements.

Consumer Promotion & Trade Promotion

Economic Times: Page 4 (Business of Brands) Date: 25/09/2012 Title: Big Bargains Return to Lift Mood This Diwali

About Article: Durable makers Like Panasonic, Samsung, Godrej, Whirlpool and Videocon are bringing back sales Promotion and trade promotion this festive season and Growths targets of Whirlpool by 15-20%, Samsung by 25-30%, Godrej Appliance by 25-30% Strategies used by companies: Consumer Promotion: Samsung: A tablet free with Hi-end LED/Plasma TV priced upwards of Rs 1.36 Lakhs. Promotional Pricing: Gitanjali Group: It will sell gold jewellery at last years price, by reducing gold content. Trade Promotion: Godrej: Dealers can earn up to one kg of Gold if they meet their sales operation.