FMCG

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS
WHAT IS PROMOTION.
Promotion is one of the four aspects of marketing. The other three parts of the marketing mix are product management, pricing, and distribution. Promotion involves disseminating information about a product, product line, brand, or company. It is comprised of four subcategories: Advertising Personal selling Sales promotion Publicity and public relations
The specification of these four variables creates a promotional mix or promotional plan. Promotion is a means of increasing the public s or industry s a!areness of a business and its services or goods. A set of marketing and sales activities attached to a specific advertisement, campaign, or trade sho! that offers a discount or other incentive based on a time frame or use of a designated code. Sales revenue and discounts generated from a given promotion are tracked to measure their effectiveness. Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity "mention in the press#. The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. It is not enough to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. Promotion is, therefore, about companies communicating with customers .
DEFINITION OF FMCG
$ast %oving &onsumer 'oods: This is usually an everyday lo! priced and lo! risk product that re(uires very little thought !hen purchasing. $%&' is an acronym for $ast %oving &onsumer 'oods. $%&' is a classification that refers to !ide range of fre(uently purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, and other non)durables such as glass!are, bulbs, batteries, and plastic goods such as buckets. $ast %oving is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year.
WHAT DOES PROMOTION DO FOR FMCG PRODUCTS?

Promotion has several possible ob*ectives and many pieces of marketing promotion aim to achieve several of the follo!ing ob*ectives at the same time: Inform %anagement may need to make their audience a!are that their product exists, and to explain exactly !hat it does. This is a particularly important ob*ective for ne! products. Persuade This is an important step, !hich helps in creating favorable attitudes to!ards the business and its brands. Through persuasive promotion, management !ill seek to persuade customers and the trade that their brand has benefits that are superior to competitors Image creation Sometimes, promoting a brand image is the only !ay to create differentiation in the mind of the consumer "e.g. lager advertising# Reassurance %uch promotion "particularly advertising# is about reassuring customers that they have made the right choice and encouraging them to stay loyal to a brand. There are a large and gro!ing number of promotional methods that businesses can use. The main instruments ) advertising, direct response mailing, sales promotion, public relations and direct selling, are often mixed together as part of the promotional mix.
Promotional Strategies for FMCG

In the sales profession, t!o effective !ays to get business are to go out after it, or have it come to you. The first you do by prospecting+ the second through promotional strategies. %ost salespeople agree it,s much more pleasant and less time consuming !hen prospects come to them. The beauty of promotional strategies is: they plant a seed in your prospect,s mind. In effect, you,ve made a -reservation- to be considered for future business. If your prospect has had positive exposure to you in advance, you !ill more easily establish the relationship, make the appointment and complete the sale. Promotion can give you the name recognition you need.
OB ECTI!ES OF THE PROMOTIONA" STRATEG#

A successful promotional strategy multiplies the salesperson,s presence and increases his effectiveness. A properly executed promotional program can accomplish these ob*ectives: .. Introduce your product or service to ne! prospects /. Smooth the !ay for setting appointments 0. 1ncourage more purchases by current clients 2. Stimulate off)season purchases 3. &ompete !ith competitor,s promotional efforts 4. 5eep present, former and future customers informed of your services
6. 1nlarge your market by increasing activity in a !ider geographic area.
All promotional efforts aim to increase sales. 7hile advertising and sales promotion do this directly+ publicity and public relations influence sales indirectly, by encouraging the buyer to think highly of you, your company, and your products. %ost people !ould rather buy from a person or company they -like- even if they don,t kno! them personally.
A PROMOTIONA" MI$ CONTAINS THE FO""OWING PRINCIP"E FO%R E"EMENTS&'

1. ADVERTISING 2. PERSONAL SELLING 3. SALES PROMOTIONS 4. PUBLIC RELATIONS
THESE ARE OTHER T#PES OF PROMOTIONA" STRATEGIES %SED FOR FMCG PROD%CTS&'
1. PUBLICITY 2. DIRECT MARKETING 3. VIRAL MARKETING 4. INTERNET MARKETING 5. DIGITAL MARKETING 6. WORD OF MOUTH 7. PROMOTIONAL ACTIVITIES THROUGH MEDIA
1. ADVERTISING:
-The means of providing the most persuasive possible selling message to the right prospects at the lo!est possible cost-. 5otler and Armstrong provide an alternative definition: -Advertising is any paid form of non)personal presentation and promotion of ideas, goods and services through mass media such as ne!spapers, maga8ines, television or radio by an identified sponsor-. Advertising means a paid, persuasive presentation promoting you, your company, and9or your product9service. :o matter ho! subtle or obvious your ad, the desired outcome can be achieved only through:
.. 1ducation ) %aking prospects a!are of yourself or your product and !hat you can do for them /. Preference $ormation ) 'etting the prospect to like you and prefer your product to the competition
0. 'enerating an In(uiry ) Advertising doesn,t make a customer, you do. ;ut, you must get people to tell you of their interest. The si8e and nature of your business !ill determine !hich advertising means you !ill use. If you,re a sales consultant, it often doesn,t pay for you to advertise on T< or in ne!spapers. Trade *ournals can be a more effective medium. In determining !hich sources !ould best fill your needs, ask yourself some (uestions: .. 7hat message do I !ant to convey= Should more emphasis be put on my product9service or me= /. 7hat is my target audience= >o! can advertising expand it= 0. 7here !ill my target prospects most likely see my message= 2. >o! much can I afford to spend on advertising this year= 3. 7hen is the best time to advertise=
T(ere are fi)e main stages in a *ell'manage+ a+)ertising ,am-aign& Stage .& Set t(e A+)ertising O/0e,ti)es&
An advertising ob*ective is a specific communication task to be achieved !ith a specific target audience during a specified period of time. Advertising ob*ectives fall into three main categories: "a# To inform ) e.g. tell customers about a ne! product "b# To persuade ) e.g. encourage customers to s!itch to a different brand "c# To remind ) e.g. remind buyers !here to find a product
Stage 1& Set t(e A+)ertising B2+get&

%arketers should remember that the role of advertising is to create demand for a product. The amount spent on advertising should be relevant to the potential sales impact of the campaign. This, in turn !ill reflect the characteristics of the product being advertised.
Stage 3& Determine t(e 4e5 A+)ertising Messages&

Spending a lot on advertising does not guarantee success. ?esearch suggests that the clarity of the advertising message is often more important than the amount spent. The advertising message must be carefully targeted to affect the target customer audience.
Stage 6& De,i+e *(i,( A+)ertising Me+ia to %se&

There is a variety of advertising media from !hich to chose. A campaign may use one or more of the media alternatives. The key factors in choosing the right media include: "a# ?each ) !hat proportion of the target customers !ill be exposed to the advertising= "b# $re(uency ) ho! many times !ill the target customer be exposed to the advertising message=
"c# %edia Impact ) !here, if the target customer sees the message ) !ill it have most impact= $or example does an advertisement promoting holidays for elderly people have more impact on Television "if so, !hen and !hich channels#
Stage 7& E)al2ate t(e res2lts of t(e A+)ertising Cam-aign&

The evaluation of an advertising campaign should focus on t!o key areas: "a# The &ommunication 1ffects ) is the intended message being communicated effectively and to the intended audience= "b# The Sales 1ffects ) has the campaign generated the intended sales gro!th. This second area is much more difficult to measure.
Ma0or Met(o+s of A+)ertising 8Re-eate+l5 Getting Message O2t9

Bro,(2res or fl5ers& %any desktop publishing and !ord)processing soft!are packages can produce highly attractive tri)fold "an @.3 inch by ..)inch sheet folded in thirds# brochures. ;rochures can contain a great deal of information if designed !ell, and is becoming a common method of advertising Dire,t mail& %ail sent directly from you to your customers can be highly customi8ed to suit their nature and needs. Aou may !ant to build a mailing list of your current and desired customers. &ollect addresses from customers by noticing addresses on their checks, asking them to fill out information cards, etc. 5eep the list online and up)to)date. %ailing lists can (uickly become out)of)date. E'mail messages& These can be !onderful means to getting the !ord out about your business. Besign your e)mail soft!are to include a -signature line- at the end
of each of your e)mail messages. %any e)mail soft!are packages !ill automatically attach this signature line to your e)mail, if you prefer. Maga:ines& %aga8ines ads can get (uite expensive. $ind out if there,s a maga8ine that focuses on your particular industry. If there is one, then the maga8ine can be very useful because it already focuses on your market and potential customers. Ne*sletters& This can be po!erful means to conveying the nature of your organi8ation and its services. &onsider using a consultant for the initial design and layout. Today,s desktop publishing tools can generate very interesting ne!sletters (uite inexpensively.
Ne*s-a-ers 8ma0or9& Almost everyone reads the local, ma*or ne!spaper"s#. Aou can get your business in the ne!spaper by placing ads, !riting a letter to the editor or !orking !ith a reporter to get a story !ritten about your business. Advertising can get (uite expensive. :e!spapers are often (uite useful in giving advice about !hat and ho! to advertise. 5no! !hen to advertise )) this depends on the buying habits of your customers
Ne*s-a-ers 8neig(/or(oo+9& Ironically, these are often forgotten in lieu of ma*or ne!spapers, yet the neighborhood ne!spapers are often closest to the interests of the organi8ation,s stakeholders. Online +is,2ssion gro2-s an+ ,(at gro2-s& As !ith e)mail, you can gain fre(uent exposure to yourself and your business by participating in online discussion groups and chat groups. :ote, ho!ever, that many groups have strong ground rules against blatant advertising. 7hen you *oin a group, al!ays check !ith the moderator to understand !hat is appropriate.
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Posters an+ /2lletin /oar+s& Posters can be very po!erful !hen placed !here your customers !ill actually notice them. ;ut think of ho! often you,ve actually noticed posters and bulletin boards yourself. Ra+io anno2n,ements& A ma*or advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for example, !hen in their cars. Ads are usually sold on a package basis that considers the number of ads, the length of ads and !hen they are put on the air. . A ma*or consideration !ith radio ads is to get them announced at the times that your potential customers are listening to the radio. Telemar4eting& Telemarketing uses the telephone as a direct marketing medium through !hich a variety of sales and market research activities can be carried out. 7hen combined !ith information and management systems, it can bring trained personnel into computeri8ed contact !ith potential customers, and maintain that contact profitably.
Tele)ision a+s& %any people don,t even consider television ads because of the impression that the ads are very expensive. They are more expensive than most of ma*or forms of advertising. >o!ever, !ith the increasing number of television net!orks and stations, businesses might find good deals for placing commercials or other forms of advertisements.
We/ -age& Aou probably !ould not have seen this means of advertising on a list of advertising methods if you had read a list even seven years ago. :o!, advertising and promotions on the 7orld 7ide 7eb are almost commonplace. ;usinesses are developing 7eb pages sometimes *ust to appear up)to)date. &onsidering that the number of people on the !eb is exponentially rising !ith time it has gro!n to be a favorable option.
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#ello* Pages& The Aello! Pages can be very effective advertising if your ads are !ell) placed in the directory,s categories of services, and the name of your business is descriptive of your services and9or your ad stands out "for example, is bolded, in a large box on the page, etc.#. The phone company !ill offer free advice about placing your ad in the Aello! Pages. They usually have special packages !here you get a business phone line along !ith a certain number of ads.
Judging the effectiveness of advertising:

>o! can the effectiveness of an advertisement be *udged= The ans!er depends on !hat ob*ectives or tasks !ere set for the advertisement. The table belo! sets out some possible ob*ectives9tasks and ho! the effectiveness of the advertisement might be measured:
Advertising objective
-How success can be measured
Stimulate an increase in sales
- Number of enquiries from advertisement - Number of enquiries converted into sales
Remind customers existence of a product
of
the
- Test customer awareness both before and after the advertising campaign - Number of enquiries
nform customers
Test customer awareness - Number of requests for further information
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!uild a brand image
-Sales -Test customer awareness of recognition and perceived values lo"alt" and #evels of repeat - #evels of customer retention
brand
!uild customer relationship
purchase
$hange customer attitudes
- %easure demographic profile of purchases - %easure t"pe of goods ordered b" new bu"ers - $ompare with previous data
Patterns have emerged !hich sho! that some sources are better for salespeople than others. The most proven promotional methods in sales of $%&' are, in this order: &' (erson to person contact )' Telephone contact *' (ersonal letter +' ,orm letter -' .eneral promotional mailing /' 0ispla" advertising
Cne good strategy combines a personal letter of introduction prior to personal contact. The benefits of personal contact are obvious )) each contact has a high impact. ;oth methods can be utili8ed appropriately and successfully.
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2. PERSONAL SELLING:
Cral communication !ith potential buyers of a product !ith the intention of making a sale. The personal selling may focus initially on developing a relationship !ith the potential buyer, but !ill al!ays ultimately end !ith an attempt to -close the sale-. Personal selling occurs !here an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships. In comparison to other marketing communications tools such as advertising, personal selling tends to:
1se fewer resources2 pricing is often negotiated' (roducts tend to be fairl" complex 3e'g' financial services or new cars4' There is some contact between bu"er and seller after the sale so that an ongoing relationship is built' $lient5prospects need specific information' The purchase tends to involve large sums of mone"'
There are exceptions of course, but most personal selling takes place in this !ay. Personal selling involves a selling process that is summari8ed in the follo!ing $ive Stage Personal Selling Process. The five stages are: &' (rospecting' )' %a6ing first contact' *' The sales call' +' 7bjection handling' -' $losing the sale'
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Stage One Pros ecting:

Prospecting is all about finding prospects, or potential ne! customers. Prospects should be ,(ualified,, !hich means that they need to be assessed to see if there is business potential, other!ise it could be !asting your time. In order to (ualify your prospects, one needs to: (lan a sales approach focused upon the needs of the customer' 0etermine which products or services best meet their needs' n order to save time2 ran6 the prospects and leave out those that are least li6el" to bu"'
Stage !"o # $a%ing &irst 'ontact:

This is the preparation that a salesperson goes through before they meet !ith the client, for example via e)mail, telephone or letter. Preparation !ill make a call more focused. %a6e sure that "ou are on time' !efore meeting with the client2 set some objectives for the sales call' 8hat is the purpose of the call9 %a6e sure that "ou:ve done some homewor6 before meeting "our prospect' This will show that "ou are committed in the e"es of "our customer'
To save time2 send some information before "ou visit'
Stage !hree # !he Sa(es 'a(( )or Sa(es Presentation*:

It is best to be enthusiastic about your product or service. If you are not excited about it, don,t expect your prospect to be excited. $ocus on the real benefits of the product or service to the specific needs of your client, rather than listing endless lists of features.
Stage &our # O+,ection -and(ing:

Cb*ection handling is the !ay in !hich salespeople tackle obstacles put in
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their !ay by clients. Some ob*ections may prove too difficult to handle, and sometimes the client may *ust take a dislike to you.
Stage &ive # '(osing the Sa(e:

This is a very important stage. Cften salespeople !ill leave !ithout ever successfully closing a deal. Therefore, it is vital to learn the skills of closing. ;ust as6 for the business< - :(lease ma" ta6e an order9: This reall" wor6s well' #oo6 for bu"ing signals 3i'e' bod" language or comments made b" the client that the" want to place an order4' ,or example2 as6ing about availabilit"2 as6ing for details such as discounts2 or as6ing "ou to go over something again to clarif"' ;ust stop tal6ing2 and let the client sa" :"es': Again2 this reall" wor6s' The :summar" close: allows the salesperson to summari=e ever"thing that the client needs2 based upon the discussions during the call' ,or example2 :>ou need product ? in blue2 b" ,rida"2 pac6aged accordingl"2 and delivered to "our wife:s office': Then as6 for the order' The :alternative close: does not give the client the opportunit" to sa" no2 but forces them towards a "es' ,or example2 :0o "ou want product ? in blue or red9: $hee6"2 but effective
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.. SALES PRO$O!IONS:
Sales promotions differ from overall promotion in that they are onetime activities. They involve special sales, demonstrations, and other business stimulators that are temporary. Some common promotions are: demonstrations, novelties9gifts, special events, coupons, exhibit booths, incentives, celebrity appearances, discounts, promotional offers, holiday cards, open houses, and sales. Sales promotion is one of the four aspects of promotional mix. "The other three parts of the promotional mix are advertising, personal selling, and publicity9public relations.# Sales promotions are non)personal promotional efforts that are designed to have an immediate impact on sales. %edia and non)media marketing communications are employed for a pre)determined, limited time to increase consumer demand, stimulate market demand or improve product availability. 1xamples include:

coupons discounts and sales2 including !lue $ross Sale contests point of purchase displa"s rebates free samples 3in the case of food items4 gifts and incentive items free travel2 such as free flights'
Sales promotions can be directed at either the customer, sales staff, or distribution channel members "such as retailers#. Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and !holesale are called trade sales promotions. Some sale promotions, particularly ones !ith unusual methods, are considered gimmick by many.
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'onsu/er sa(es ro/otion techni0ues:
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Se(ecting Sa(es Pro/otiona( !oo(s:

Sa/ (es:
Cffer a free amount of a product or service delivered door)to)door, sent in the mail, picked up in a store, attached to another product or featured I an advertising offer. 'ou ons: &ertificate entitling the bearer to a stated saving on the purchase of a specific product: mailed, enclosed in other product, attached to them, or inserted in maga8ines and ne!spaper ads. 'ash Refund Offer )Re+ate*: (rovide a price reduction after a purchase rather than at the retail shop@ consumer sends a specified A(roof of (urchaseB to the manufacturer who ArefundsB part of the purchase price b" mail'
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Price Pac% )'ents of 1ea(s*: 7ffers to consumers of saving off the regular price of a product2 flagged on the label or pac6age' A reduced-price is a single pac6age sold at a reduced price 3such as two for price of one4' A branded pac6 is2 two related branded products together 3such as toothbrush and toothpaste4' Pre/iu/s )Gifts*: %erchandise offered at a relatively lo! cost or free as an incentive to purchase a particular product. A !ith)pack premium accompanies the product inside or on the package. A free in)the)mail premium is mailed to consumers !ho send in a proof of purchase, such as a box top or DPS code. A sel) li(uidating premium is sold belo! its normal retail price to consumers !ho re(uest it. &re0uenc2 Progra/s: (rograms providing rewards related to the consumerBs frequenc" and intensit" in purchasing the compan"Bs products or service'
Product 3arranties: 1xplicit or implicit promises by sellers that the product !ill perform as specified or that the seller !ill fix it or refund the customer s money during a specific period.
&ree tria(s: Inviting prospective purchasers to try the product !ithout cost in the
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hope that they !ill buy. !ie#in Pro/otions: T!o or more brands or companies team up on coupons, refunds, and contests to increase pulling po!er. 'ross#Pro/otions: Dsing one brand to advertise another displays and demonstrates take place at the point)of)purchase or non)competing brand. Point)of)Purchase "PCP# Bisplays and Bemonstrates: sale.
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4. P56LI' RELA!IONS:
Public relations means relating to the public in a !ay that !ins its appreciation. It involves good!ill and community a!areness. Its affect on sales is indirect and more difficult to analy8e. Sales do improve, ho!ever, because people like to do business !ith salespeople that take an interest in the community. In determining your best public relations strategies, you should consider: 7ho are your -publics=- They are groups of people !ho perceive you as a businessperson. Some publics act on their perceptions and increase your sales+ others *ust appreciate you. It is important to identify each of your publics and develop strategies for improving your image !ith them. $or example, if you sell real estate, your publics could be bankers, mortgage companies, customers, the community at large, other brokers, property managers, etc. >o! can you reach these publics= %any methods exist. Aour choices might include: (. &ontributions of time or money to particular groups and activities, such as sponsoring Eittle Eeague, bo!ling teams, sporting events, cultural activities, charities, community development programs, and others . 9. Public speeches ) Aou can offer your services to a group !ho !ould like to hear you speak on your area of expertise. %. Staged events ) Aour targeted publics may sponsor picnics, anniversary parties, ball games or other events. Aour presence at these occasions gives your public a chance to get to kno! you in a relaxed, non)business
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setting. '. Trade Associations ) ;elonging to these and special interest groups provides good P? for individuals and companies. Aour membership sho!s that you care about the industry. Aou can also develop many prospects from your participation 7hat image do you !ant to convey= Public relations can be more important to an individual salesperson than to a company. Aour image is an -intangible- asset that affects sales as much as your -tangible- assets "products#. The !ay people see you on a day)to)day basis is very important. Therefore, public relations should be a !ay of life as !ell as a strategy for exposure. Professionalism is the best P?.
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7. P56LI'I!8:
Publicity means getting exposure through the ne!s media, utili8ing announcements prepared by companies or the media of ne!s!orthy stories or events. Publicity also can mean feature articles in maga8ines. This coverage or -free advertising- can have spectacular results. Publicity often succeeds !here advertising fails: Cre+i/ilit5 ) 7hen people read an article in the paper or hear a story on the ne!s, they automatically assume it is authentic and originated by the media.
S2/tlet5 8 Aour message reaches many prospects, !ho !ould other!ise resist contact. Prospects -ingest- your message as ne!s rather than as -advertising.-
Dramati:ation ) Publicity can convey, -7e are your neighbors, struggling !ith you and doing our part to improve life around us.- Publicity, especially on a local level, helps create a feeling of community.
Publicity takes many forms. Aour company or a public relations firm prepares press releases. These brief, ne!s!orthy stories highlight you or the company in a !ay that interests the public. The difficulty is getting the media to use the story. To have your press releases published regularly, you must have expertise in publicity as !ell as good connections !ith the ne!s media. $rom a marketing perspective, publicity is one component of promotion. The other elements of the promotional mix are advertising, sales promotion, and personal selling. Promotion is one component of marketing.
;et!een the client and selected target audiences, publicity is the
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management of product) or brand)related communications bet!een the firm and the general public. It is primarily an informative activity "as opposed to a persuasive one#, but its ultimate goal is to promote the client,s products, services, or brands. A publicity plan is a planned program aimed at obtaining favorable media coverage for an organi8ation,s products ) or for the organi8ation itself, to enhance its reputation and relationships !ith stakeholders.
A basic tool of the publicist is the press release, but other techni(ues include telephone press conferences, in)studio media tours, multi)component video ne!s releases "<:? s#, ne!s!ire stories, and internet releases. $or these releases to be used by the media, they must be of interest to the public "or at least to the market segment that the media outlet is targeted to#. The releases are often customi8ed to match the media vehicle that they are being sent to. 'etting noticed by the press is all about saying the right thing at the right time. A publicist is continuously asking !hat about you or your company !ill pi(ue the reader,s curiosity and make a good story= The most successful publicity releases are related to topics of current interest. These are referred to as ne!s pegs. An example is if three people die of !ater poisoning, an alert publicist !ould release stories about the technology embodied in a !ater purification product. ;ut the publicist cannot !ait around for the ne!s to present opportunities. They must also try to create their o!n ne!s. 1xamples of this include: $ontests Art exhibitions Cvent sponsorship Arrange a speech or tal6 %a6e an anal"sis or prediction ssue a report
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Ta6e a stand on a controversial subject Arrange for a testimonial Announce an appointment $elebrate an anniversar" nvent then present an award 7rgani=e a tour of "our business or projects ssue a commendation
The advantages of publicity are lo! cost, and credibility "particularly if the publicity is aired in bet!een ne!s stories like those that on evening T< ne!scasts#. :e! technologies such as !eblogs, !eb cameras, !eb affiliates, and convergence "phone)camera posting of pictures and videos to !ebsites# are changing the cost)structure. The disadvantages are lack of control over ho! your releases !ill be used, and frustration over the lo! percentage of releases that are taken up by the media.
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9. 1IRE'! $AR:E!ING:
Birect marketing is a sub)discipline and type of marketing. There are t!o main definitional characteristics !hich distinguish it from other types of marketing or advertising. The first is that it attempts to send its messages directly to consumers, !ithout the use of intervening media. This involves unsolicited commercial communication !ith consumers or businesses. The second characteristic is that it is focused on driving purchases that can be attributed to a specific -call)to)action.- This aspect of direct marketing involves an emphasis on trackable, measurable results "kno!n as -responsein the industry# regardless of medium. The most common form of direct marketing is direct mail, !here the marketers use a reduced -bulk mail- postal rate to send paper mail to all postal customers in an area or all customers !hose addresses have been taken from a list. The second most common form of direct marketing is telemarketing, !here marketers call selected "or random# telephone numbers. 1mail %arketing, including spam may have passed telemarketing in fre(uency at this point, and it is a third type of direct marketing. A fourth type of direct marketing, broadcast faxing, is no! less common than the other forms. A related form of marketing is infomercials. They are typically called -direct response- marketing rather than direct marketing because they try to achieve a direct response via television presentations. <ie!ers respond via telephone or internet, credit card in hand.
Birect marketers also use media such as door hangers, package inserts, 27
maga8ines, ne!spapers, radio, television, email, internet banner ads, pay) per)click ads, billboards, transit ads, etc.
;. <IRAL $AR:E!ING:
<iral marketing and viral advertising refer to marketing techni(ues that use pre)existing social net!orks to produce increases in brand a!areness, through self)replicating viral processes, analogous to the spread of pathological and computer viruses. It can be !ord)of)mouth delivered or enhanced by the net!ork effects of the Internet. <iral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message voluntarily. <iral promotions may take the form of funny video clips, interactive $lash games, advergames, images, or even text messages. It is claimed that a satisfied customer tells an average of three people about a product or service he9she likes, and eleven people about a product or service, !hich he9she did not like. <iral marketing is based on this natural human behaviour. The goal of marketers interested in creating successful viral marketing programs is to identify individuals !ith high Social :et!orking Potential "S:P# and create <iral %essages that appeal to this segment of the population and have a high probability of being passed along. The term -viral marketing- is also sometimes used pe*oratively, to refer to stealth marketing campaigns))the use of varied kinds of astroturfing both online and offline to create the impression of spontaneous !ord of mouth enthusiasm.
=. IN!ERNE! $AR:E!ING:
Also referred to as online mar6eting or C-mar6eting2 is mar6eting that uses the nternet' The nternet has brought man" unique benefits to mar6eting that include ver" low costs in distributing information and media to a global audience' However2 the interactive nature of the media2 both in terms of instant response2 and in eliciting response at all2 are both desirable qualities of internet mar6eting' nternet mar6eting ties together both the creative and technical aspects of the internet2 including design2 development2 advertising and sales' nternet mar6eting methods include search engine mar6eting2 displa" advertising2 e-mail mar6eting2 affiliate mar6eting2 interactive advertising and viral mar6eting' nternet mar6eting is the process of growing and promoting an organi=ation using online media' nternet mar6eting does not simpl" mean :building a website: or :promoting a website:' Somewhere behind that website is a real organi=ation with real goals' nternet mar6eting strateg" includes all aspects of online advertising products2 services2 and websites2 including search engine mar6eting2 public relations2 social media2 wi6is2 mar6et research2 email mar6eting2 and direct sales' The internet mar6eter selects the best of these vehicles2 given the organi=ation:s goals and audience' Then the mar6eter helps the organi=ation execute the best mar6eting strateg"' All of this wor6 focuses on accomplishing the goals of the organi=ation'
2!
>. 1IGI!AL $AR:E!ING:

0igital %ar6eting is the practice of promoting products and services using digital distribution channels to reach consumers in a timel"2 relevant2 personal and cost-effective manner' 8hilst digital mar6eting does include man" of the techniques and practices contained within the categor" of nternet %ar6eting2 it extends be"ond this b" including other channels with which to reach people that do not require the use of The nternet' As a result of this non-reliance on the nternet2 the field of digital mar6eting includes a whole host of elements such as mobile phones2 sms 5 mms2 displa" 5 banner ads and digital outdoor' (reviousl" seen as a stand-alone service in its own right2 it is frequentl" being seen asa domain that can and does cover most2 if not all2 of the more traditional mar6eting areas such as 0irect %ar6eting b" providing the same method of communicating with an audience but in a digital fashion
1igita( $ar%eting Pu(( vs. Push

There are ) different forms of digital mar6eting2 each of which has their pros and cons
Push
A DpushE promotional strateg" ma6es use of a compan":s sales force and trade promotion activities to create consumer demand for a product' The producer promotes the product to wholesalers2 the wholesalers promote it to retailers2 and the retailers promote it to consumers' A good example of FpushF selling is mobile phones2 where the major handset manufacturers such as No6ia promote their products via retailers such as $arphone 8arehouse' (ersonal selling and trade promotions are often the most effective promotional tools for companies such as No6ia - for example offering subsidies on the handsets to encourage retailers to sell
3"
higher volumes' A FpushF strateg" tries to sell directl" to the consumer2 b"passing other distribution channels 3e'g' selling insurance or holida"s directl"4' 8ith this t"pe of strateg"2 consumer promotions and advertising are the most li6el" promotional tools' Pros: G $an be personali=ed -- messages received can be highl" targeted and specific to selected criteria H li6e a special offer for females2 )& "ears old or over and living in $alifornia'
G 0etailed trac6ing and reporting H mar6eters can see not onl" how man" people saw their message but also specific information about each user such as their name as well as demographic and ps"chographic data' G High Return on nvestment 3R7 4 possible H if executed the right wa"2 push messaging can help drive new revenue as well as brand reinforcement' 'ons: G $ompliance issue H each push messaging technolog" has its own set of regulations2 from minor 3RSS4 to heavil" controlled 3email and text messaging4 G Requires mechanism to deliver content H the mar6eter has to use an application to send the message2 from an email mar6eting s"stem to RSS feeders'
Pu((
A DpullE selling strateg" is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product' f the strateg" is successful2 consumers will as6 their retailers for the product2 the retailers will as6 the wholesalers2 and the wholesalers will as6 the producers' A good example of a pull is the heav" advertising and promotion of
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children:sB to"s H mainl" on television' $onsider the recent !!$ promotional campaign for its new pre-school program' Pros: No restrictions in terms of t"pe of content or si=e as the user determine what the" want' No technolog" required to send the content2 onl" to store5displa" it' No regulations or opt-in process required
'ons: $onsiderable mar6eting effort required for users to find the message5content' #imited trac6ing capabilities H onl" total downloads2 page views2 etc' No personali=ation H content is received and viewed the same across all audiences
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?@. 3ord Of $outh:

7ord of mouth promotion, also kno!n as bu88 marketing and viral advertising, is an attempt by marketers to make use of the !ord)of)mouth -channel- in promoting certain products or services. It is felt that this form of communication has valuable source credibility, as people are generally inclined to trust someone,s opinion if they feel that it is offered freely and !ithout prompting, compulsion, or personal interest in communicating the information. People are more inclined to believe !ord of mouth promotion than more formal forms of promotion "i.e. advertising# because it is assumed that the communicator !as satisfied by the goods or services provided and is unlikely to have an ulterior motive "i.e. they are not out to sell you something#. Also, people tend to believe people !hom they kno!. 7hile any marketers places extreme value on !ord)of)mouth, this has historically been achieved by creating products or services that generate such -bu88- naturally. The relatively ne! method of 7C%% bypasses the need to create satisfied customers, and instead attempts to in*ect positive -bu88- into conversations directly. 7hile marketers have al!ays hoped to achieve !ord) of)mouth, many suggest there are serious ethical concerns in trying to generate !ord of mouth directly. 7ith the increasing use of the Internet as a research and communications platform, !ord of mouth has become an even more po!erful and useful resource for consumers and marketers. Tracking this online ,bu88, has led to the rise of a range of services and tools kno!n as ;u88 monitoring !ithin the sphere of Cnline Public ?elations.
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??.
Pro/otiona( Activities !hrough )Re ortersA Ne"s a ersA etc.*
the
$edia
Arti,les t(at 5o2 *rite )) Is there something in your industry or market about you have a strong impression= &onsider !riting an article for the local ne!spaper or a maga8ine. In your article, use the opportunity to describe !hat you,re doing to address the issue through use of your business. E+itorials an+ letters to t(e e+itor )) Cften, program providers are experts at their service and understanding a particular need in the community+ ne!spapers often take strong interest in information about these needs, so staff should regularly offer articles "of about /FF to GFF !ords# for publication Press 4its )) This kit is handy !hen !orking !ith the media or training employees about !orking !ith the media. The kit usually includes information about your business, pictures, information about your products, commentary from happy customers, etc.
Press releases or ne*s alerts )) They alert the press to a ma*or event or accomplishment and re(uesting, e.g., it get included in the ne!spaper+ they explain !ho, !hat, !here, !hy and !hen+ some include pictures, (uotes, etc. to make it easier for the reporter to develop an announcement or story. P2/li, ser)i,e anno2n,ements 8PSA9s )) %any radio and some television stations !ill provide public service announcements for nonprofit efforts. Dsually, these PSA s are free.
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?2. Other Pro/otiona( Activities and Events:

Ann2al re-orts '' Bisseminate these to key stakeholders+ they,re ripe !ith information if they include an overvie! of your year,s activities, accomplishments, challenges and financial status.
Colla/oration or strategi, restr2,t2ring '' If you,re organi8ation is undertaking these activities, celebrate it publicly.
Net*or4ing '' Spread the !ord to peers, professional organi8ations and those !ith !hom you interact outside the organi8ations, e.g., educators, consultants, suppliers, clients, etc.
No)elties'' It seems more common to find ads placed on pens and pencils, coffee cups, T)shirts, etc. These can be po!erful means of advertising if indeed current and potential customers see the novelties. This condition often implies additional costs to mail novelties, print T)shirts, etc.
Presentations )) Aou are probably an expert at something. $ind !ays to give even short presentations, for example, at local seminars, &hamber of &ommerce meetings, trade sho!s, conventions, seminars, etc. It is ama8ing that one can send out 3FF brochures and be lucky to get 3 people !ho respond. Aet, you can give a presentation to 0F people and .3 of them !ill be very interested in staying in touch !ith you.
Relations(i-s *it( 4e5 sta4e(ol+ers )) Identify at least one representative from each ma*or stakeholder group and take them to lunch once a year. 7hat seem as short, informal exchanges can cultivate po!erful
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relationships of interest and concern.
S-e,ial e)ents )) These tend to attract attention, and can include, e.g., an open house, granting a special a!ard, announcing a ma*or program or service or campaign, etc.
S-e,ial offers )) 7e see these offers all the time. They include, for example, coupons, discounts, s!eepstakes, sales, etc.
&actors that deter/ine the t2 e of used:
ro/otiona( too(s
1ach of the above components of the promotional mix has strengths and !eaknesses. Several factors should be taken into account in deciding !hich, and ho! much of each tool to use in a promotional marketing campaign:
8.9 Reso2r,e a)aila/ilit5 an+ t(e ,ost of ea,( -romotional tool Advertising "particularly on television and in the national ne!spapers can be very expensive#. The overall resource budget for the promotional campaign !ill often determine !hich tools the business can afford to use.
819 Mar4et si:e an+ ,on,entration If a market si8e is small and the number of potential buyers is small, then personal selling may be the most cost)effective promotional tool. A good example of this !ould be businesses selling soft!are systems designed for supermarket retailers. Cn the other hand, !here markets are geographically disperse or, !here there are substantial numbers of potential customers, advertising is usually the most effective.
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839 C2stomer information nee+s Some potential customers need to be provided !ith detailed, complex information to help them evaluate a purchase "e.g. buyers of e(uipment for nuclear po!er stations, or health service managers investing in the latest medical technology#. In this situation, personal selling is usually re(uired ) often using selling teams rather than *ust one individual. ;y contrast, fe! consumers need much information about products such as baked beans or bread. Promotional tools such as brand advertising and sales promotion are much more effective in this case.
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S!RENG!-S AN1 3EA:NESSES O& PRO$O!IONAL !OOLS
Setting Pro/otiona( EB enditures:

1stablishing the amount to spend on promotional is difficult. ;elo! are some factors to consider in setting the si8e of your promotion budget.
Mar4et s(are ) A company that has a higher market share generally has to spend more on advertising to maintain its share.
Sales from ne* -ro+2,ts ) If a company has a high percentage of its sales from ne! products, it has to spend more on advertising compared to companies !ith established products.
Mar4et gro*t( ) &ompanies competing in fast)gro!ing markets should spend comparatively more on advertising.
Plant ,a-a,it5 ) If a company has a lot of unused plant capacity, it should spend more on advertising to stimulate sales of product.
Pro+2,t -ri,e ) ;oth very high)priced "and premium# products and very lo!)priced "or discount# products re(uire higher ad expenditures because, in both cases, price is an important factor in the buying decision. The buyer has to be convinced "through advertising# that the product is a good value.
Pro+2,t ;2alit5 ) >igher (uality products re(uire greater advertising effort because of the need to convince the consumer that the product is uni(ue Brea+t( of -ro+2,t line ) &ompanies !ith a broad line of products have to spend more on advertising compared to companies !ith
3!
speciali8ed lines.
Inexpensive Promotion Suggestions:

If your promotion budget is small, belo! are some inexpensive, appropriate and effective methods of promotion for the ne! food processor include: H Personal selling H Product demonstrations H Birect mail H ;usiness cards H Aello! Page listing H Seminars H :e!sletters H &ontests H $lyers H 7indo! banners H 'reeting cards H Sports team sponsor H >ome parties H 1thnic services ) languages spoken
4"
Rationalising ,osts
$%&' companies !ill have to increase their ad spends to sustain their market shares. 7hat is vital is an $%&' company s ability to keep its operating margins high enough to sustain that rise in ad spends. Put differently, $%&' companies should be able to prune their costs. That is !hy almost all $%&' players in India are constantly !orking on !ays to trim their costs. Some have been able to sho! heart!arming results. &onsider %arico. The company has been bogged do!n by high material costs, !hich is at a high of 3GI of its sales. That is !hy %arico has taken up to total costs management practices and has roped in Anderson &onsulting to advice on its cost initiative. Says >arsh %ari!ala, %arico s managing director J7e are looking at building an aggressive cost structure, !hich !ill help in improving our marginsK. Babur too needs to look at its cost matrix proactively. $or, Babur s margins are lo! and the company !ants to hike its ad spends. The only !ay out for Babur is to rationali8e its costs. $%&' ma*ors cannot escape hiking their ad spends in the emerging post) 7TC scenario and so they need to revie! their cost structure.
W(5 Promos<
%arketers have reali8ed that advertising is not enough. In fact research has proved time and again that direct marketing and promos are the engines for driving the numbers. And then customers these days are becoming extremely Jdeal orientedK. They have bargains and go out of their !ay to grab freebies and discounts. Also, unlike ads, promos give measurable results to the client. JPromotions are more interactive than ads, and they also entice the consumers to experience the brand or the service2E sa"s Sunil Ihurana of 41
$entur" Advertisers and (romoters2 a &--"ear-old promotions compan"' D8ith road shows and demos2 the client can also establish direct contact with its customers and get their feedbac62E he adds' Promos especially come in handy !hen the market is !orking at eroding the brand loyalty of a rival product. JPromos are more effective in brand s!itching than advertising because here the consumer has actually experienced the product,K says a direct marketing consultant.
Also, !ith mounting competition and undifferentiated advertising, promos bring in a breath of fresh air for the consumer. JIt bridges the gap bet!een advertising and sales purchase, clears the clutter and helps Lon)the) fence customers make the right purchase decision,K says :ath.
And then !ith rising media costs, ho! many corporate can afford to advertise= Promotions instead are a cost)effective alternative. &orporates like li(uor and tobacco companies are left !ith little choice but to resort to these off beat marketing efforts. :ot surprisingly, most of the ad agencies are no! looking at adding A Lpromotion or direct marketing arm to their existing bread and butter advertising business. They are trying to reposition themselves as multi)service and multi)discipline agencies so that they can offer everything that the client is looking for. In any case, there is a great overlap bet!een these marketing strategies. $or instance, !hen 5raft $oods recently launched Tang in India, they decided to go in for aggressive nation!ide promotional campaign to boost sales. The main aim !as to set Tang apart from the desi ?asna. So, they did !et sampling of the product across various retail outlets in eight cities.
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Don=t o)er+o It&

That is a golden rule that marketers should follo! !hile designing promotions. ;rands that use too much sales promotions are perceived to be Lcheap in the long run. There are other do!nsides of excessive promos too. There are promos that may seem to achieve results, but those are only short) term. &ritics argue that offers simply pre)pone the purchase and don t add any incremental value to it. $or instance, if a shirt brand is has a promotion !here they ar offering a tote bag free !ith purchase of t!o shirts for the month of Mune. JThe sales may pick up during the offer, but there is a loss of sale in the follo!ing month,K says 5elkar of Shopper s Stop. J7hich means the people !ho had the buy the shirt in Muly simply preponed their purchase due to the offer.K
Also, over promoted products often leave customers asking for more. And that s exactly !hat has happened to the !hite goods and consumer durables segment. JThe industry has spoilt the consumer !ith so many offers and freebies, that they are no longer !illing to buy the goods at the full)price,K says 5elkar. 7hich means unless there is a .2)inch colour T< free !ith a !ashing machine, it is not a good dealN
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Promotions )s A+)ertisements&
Promos are interactive, ads represents one)!ay communication. Promos are directed consumers at an individual or personal level. Ads have a mass appeal. Promos lead to immediate, short)term results. Ads are a part of a long) term brand building strategy. Promos add tangible value to goods and services, !hereas ads are intangible. Promos are more cost)effective than ads. The results of promotions can be measured more easily, !hereas in case of ad it s difficult to measure the profitability benefits. Promotions can be targeted at niche target audiences.
A+)ertisement tells> -romotion sells&

Free/ies&
7ith every >arvest 'old @FF gms bread, you get a free packet of t!o s!eet buns. 1xchange your old mixie for a ne! Inalsa %axie food processor and get ?s..FFF off. ;uy any t!o 1xcalibur shirts or rousers and get a !rist!atch !orth ?s.03F free. Cn buying ?s.0FFF !orth of fabric from ;SE Suitings, you may !in a
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.3 day trip to S!it8erland. ;uy a 5odak 5;.F camera and !in free films for a lifetime. If you score @FI or above in exams, get a Soft Serve Sundae !orth ?s.00 free at %cBonalds. These are called $?11;I1S' The freebie is supposed to make or rather actually force you to buy a particular brand, try it and stick to it. They !ant you to keep them in business forever. $rom consumer durables to fast moving consumer goods "$%&'# giants to !hite goods companies to auto manufacturers, everyone is into promotions.
T(e /ottom line is & Advertising on(2 te((sA +ut ro/otion se((sC
There !as a time !hen advertising !as considered as the only tool for boosting sales. The perception is no longer the same. 7ith marketers exploring the legitimacy of other tactics and belo!)the)line activities like contests, offers, promos, discounts and freebies, days of plain)vanilla advertising have passed. D8hile sales promos have been around since the JKBs2 it is field promotion through road shows2 demos2 sampling and so on2 that has become extremel" popular of late2E explains Atul Nath2 0irector of $andid2 a promotion mar6eting firm' The turning point for the promotion industr" came during the &LLL $ric6et 8orld $up2 when man" corporate giants launched aggressive promotional activit"' Remember D!rittania Ihao2 8orld $up ;aoE9
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The success of these promos gave the industry the proof it needed to take the plunge, eyes closed. The second ma*or boost for this sector came !ith the ama8ing stories of AI7A and Akai+ !ithin a span of a year these ne!comers had captured the imagination of the country !ith their unbelievable exchange offers. JThe advertisement industry is gro!ing and continues to be the most important part of the marketing mixK, clarifies :ath. J the ad spends are gro!ing but the promos budgets is gro!ing faster than ad spends per second. In short, companies are no longer averse to exploring alternatives for selling their product or enhancing the brand image. Today promotions have taken the centre stage along !ith advertising. So, the marketing teams and brand managers chalk a separate strategy for direct marketing and promotions. n short2 companies are no longer averse to exploring alternatives for selling their product or enhancing the brand image'
Today promotions have taken the centre stage along !ith advertising. So, the marketing teams and brand managers chalk a separate strategy for direct marketing and promotions.
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&AS1 STDBI1S
CASE ST%D# .
ARIE" CHAMPIONSHIP WHITES FREE TENNIS "ESSONS AT TESCO PROCTER ? GAMB"E %
CASE ST%D# 1
RIBENA ' WIN CARS THAT MA@E #O%R DAD "OO@ COO" G"A$O SMITH @"INE
CASE ST%D# 3
PEPSI> CO@E AND TH%MS %P
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CASE ST%D# . ARIE" CHAMPIONSHIP WHITES FREE TENNIS "ESSONS AT TESCO PROCTER ? GAMB"E %@
O/0e,ti)es& Trial Te,(ni;2es&
A*areness
Free Mail'In
6ac%ground:
Ariel !ashing po!der is a specially formulated detergent that keeps !hites looking !hiter for longer. $or the last t!o years, Ariel had run advertising campaigns, featuring Tim >enman, to demonstrate its ability to keep !hites Lchampionship !hite !ash after !ash. These had failed to make inroads into the key competitor s target audience of A; mid)family mothers.
O/0e,ti)es& To generate incremental trial and sales of Ariel in Tesco stores.

To enhance the association of Ariel !ith tennis and the Ea!n Tennis 4
Association. To make significant inroads into the key competitor s core market.
To build on previous L&hampionship 7hites campaigns and create a point of differencefor Ariel in a market of perceived parity.
Strateg5&
To target A; mothers !ith children aged 3)./ !ho research indicated had a high interest in tennis. To make Ariel synonymous !ith keeping tennis !hites !hite, building on research that indicated consumers perceive this as a torture test for any detergent. To develop an alliance !ith the Ea!n Tennis Association that !ould emphasise the brand s strong *uxtaposition !ith playing tennis. To create an added value in)store promotion offering a re!ard for every purchase of Ariel.
S2mmar5&
The offer to Tesco customers !as a free tennis lesson from an ETA licensed, (ualified coach in return for the purchase of any Ariel product. To claim their tennis lesson consumers !ere asked to mail their till receipt and a &3 stamped addressed envelope to the offer address. In return, they received a booklet containing a voucher for one free introductory tennis lesson lasting one hour and valued at up to O/3. The book also included a directory of over /FF participating coaches nation!ide. 7n receipt of the boo6let2 the consumers telephoned their chosen 4!
coach to boo6 a lesson stating that the" had an Ariel ,ree Tennis Moucher' The promotion was launched during the first wee6 of 8imbledon when the interest in tennis reaches its pea6' >umorous radio advertisements !ere a key part of the communication painting an amusing picture of individuals !ho !ere likely to benefit from free tennis lessons. In store support included end)aisle displays !ith hanging banners, shelf barkers, A3 leaflets and shippers
E(e/ents:
Besign and art!ork. Print and production. Agreement for use of Tim >enman on promotional materials. PCS distribution. ETA agreement' ?adio advertising. ?ecruitment of coaches. ?esponse management.
Me,(ani,s&
.. DISCO%NT OFFER& ?adio advertisements and in)store PCS invited consumers to purchase any Ariel product in Tesco and claim a free tennis lesson.
$ollo!ing purchase consumers mailed their till receipt and a &3 stamped addressed envelope to the offer address 5"
Cnly one application per person !as permitted and any one under the age of .@ re(uired the signature of a parent or guardian.
>ouseholds !ere able to submit multiple applications "for members of the household# provided each claim !as accompanied by a separate proof of purchase. Applicants received a booklet containing a directory of participating ETA coaches and a voucher for a free one)hour tennis lesson.
Applicants selected their coach and then telephoned him9her to book a lesson stating that they had an Ariel $ree Tennis Eesson voucher.
Materials& >anging banners.

A3 leaflets. Shelf barkers. Bisplay shippers. Birectory9voucher booklets.
Res2lts& The campaign resulted in a 0@I sales uplift of Ariel in Tesco stores.
There !ere .F6,23F free tennis lesson redemptions over the .F)!eek
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promotional period. The promotion !as a key part of the /FF0 J&hampionship 7hitesK campaign that resulted in Ariel becoming the D5 s market leading !ashing detergent for the first time in 2 years. %arket share increased by 3I. Bata collected from the redemption process added .FF,FFF ne! names to Ariel s database
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CASE ST%D# 1
RIBENA ' WIN CARS THAT MA@E #O%R DAD "OO@ COO" G"A$O SMITH @"INE
O/0e,ti)es& Te,(ni;2es&
A*areness Trial Free Item Pri:e Promotions
Ba,4gro2n+&
Traditionally ?ibena had been targeted at mothers and children ' >istorically, promotional activity had been price led. GFI of sales to the Lout of home market !ere to teenagers and young adults.
O/0e,ti)es&
To drive trial, a!areness and conse(uently sales of ?ibena. To position the brand !ith teenagers and young adults as the Ldrink for me .
Strateg5& The promotion needed to communicate !ith this core market ".@)02
year olds# and provide an irreverent concept that !ill appeal to Lthe child in them
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A fully integrated through the line campaign !as re(uired !ith a strong incentive to purchase.
The brand e(uity, ?ibenaberry, !as to feature strongly in the promotion.
S2mmar5&
Dni(ue ?I;1:A;1??A key rings, !ith eyes that popped out !hen s(uee8ed, !ere housed in the neck collars of the three million promotional bottles of ?ibena under the tagline L'ro!)Dp Cne Bay . ;ottle collars cool . also carried details of an instant !in mechanic !ith the cheeky headline L7in &ars that make your Bad look There !ere /3 pri8es of second hand cars. :on) !inners had a further opportunity to enter by ans!ering a simple (uestion on)line. The promotion !as supported !ith T< and 2@ sheet posters above the line as !ell as !obblers, bunting and shelf barkers at point of sale.
Elements& Besign
ATE advertising Premiums 7ebsite entries Agreement !ith &apri &lub International "to give assistance !ith car purchase# Point of Sale 7inners list
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Me,(ani,s&
.. FREE ITEM A ON PAC@&
The free ?I;1:A;1??A key rings !ere mounted inside the bottle collars of the promotional packs.
Strong PCS around the store dre! attention to the offer.
1. PRIBE PROMOTION A INSTANT WIN&
Instructions on the bottle collar told purchasers to look at the reverse of the bottle label to find out if they !ere a !inner. Eosers !ere given the opportunity to try again by ans!ering a simple (uestion on the !ebsite. 7inners telephoned to register their !inning label and then completed the
entry form on the reverse of the label and sent it to the offer address. 7inners received O/,FFF cash to purchase a second hand car that !ould have made their Bad look cool. An additional O3FF !as given to cover insurance. The O/FFF !as based on a car !ith 4 months road tax and .F months %CT. :o purchase !as necessary and plain paper entries !ere submitted to the offer address P only one per envelope. 1ntries !ere restricted to those aged .6 or over. The promoter accepted no responsibility for the cars selected, the cost of a
55
safety inspection being included in the pri8e.
1ntrants !ere responsible for ensuring they had a full driving license.
Materials&
?I;1:A;1??A key rings. Image ;ottle collars. 2@ sheet posters. In)store posters. $ree standing units. ;unting. Shelf barkiers and !obblers. Trade presienters.
Res2lts&
?ibena 3FFml achieved its highest monthly value sales ever. Dp 24.4I against same period previous year ' Single serve s highest monthly sales for / years P up @I versus August /FFF. ?ibena carton "although un)promoted# achieved its highest sales for // months. ?ibena became :o.. selling soft drink "including carbonates# in a number of accounts P high streets, forecourts and independents. Sales value in Airport Services moved ?ibena 3FFml from :o. /6 brand to :o. / brand in the soft drinks sector. ?I;1:A;1??A key ring became a Lmust have !ith consumers !riting and calling to find out ho! to get hold of one.
Comment&
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The key ring and the car complemented each other perfectly. The novel premium and impactful PCS !ere instrumental in hitting the right note !ith this extremely difficult target market.
CASE ST%D# 3
CASE ST%D# ON PEPSI> CO@E AND TH%MS %P ;efore advertising a product, it s very important to position a product. Definition of -ositioning& Positioning is the act of designing the company s offerings and image and occupy a distinctive place in the target market s mind. The end result of positioning is the successful creation of a market)focused value proposition, a cogent reason !hy the target segment should buy the product.
!-E <ARIO5S S!RA!EGIES A1OP!E1 68 !-ESE 6RAN1S !O A1<ER!ISE !-EIR PRO15'!S: .. PRINT MEDIA& Print media is one of the oldest forms of marketing. &old drinks come into the category of impulse buying. Therefore, it is essential for them to be seen around. Although print media is much more inflexible than electronic media is, but it is an effective medium for companies to promote their brands a. Hor+ing an+ /anners: As Pepsi is a youth drink, hording and banners of Pepsi are generally seen at places like college, canteens, theatres and amusement parks and also during entertainment sho!s.
57
The banners normally contain the famous Pepsi logo and models from various fields to promote their brand name. These banners promote the spirit of the young generation.
&C&A &CEA as a brand emphasi8es more on print media as a channel of marketing. It believes in the concept of Jpresence marketingK i.e. to be seen around. Therefore, they !ant to Jplaster every to!n in redK. $or example a student should not only see coke banners and hoardings in the college campus but also !hen he comes out on the road, goes into a restaurant and goes into any shop. &oke s banners and hoardings are very catchy because of the bright red colour and the latest film stars they use for promoting their product. T>D%S DP banners and hoardings are not seen so fre(uently as Pepsi and &oke. Its banners and hoardings are seen near sports events and stadiums to promote the spirit of dare devil and courage . The banners and hoardings contain the famous Thums Dp logo and slogan featuring starts mostly like Akshay 5umar depicting their daredevil image.
b. :e!spapers:
:e!spapers are an efficient and common media for publicity and promotion. The advertisement and the promotional matter in ne!s papers are generally seen by every one of us, as !e all read ne!spapers. :e!spapers are mainly used to promote the various offers and
discounts and the sponsored sho!s and events by these brands. Though it is seen that Pepsi and &oca &ola are carrying out extensive ne!spaper advertising, Thums Dp advertisements are not so fre(uently seen.
c. 1lectronic %edia:
1lectronic media is considered to be one of the most effective !ays of promoting a brand. 1lectronic media offers a lot of flexibility to the companies . Cne of the latest and effective !ays of electronic media is the internet. Internet is a fast gro!ing medium of advertising. And even these brands are not missing out on the opportunities of advertising on the net.
1. TE"E!ISION AD!ERTISEMENTS& Television advertisements play a ma*or role in portraying the image of any brand. It can be seen that there is cutthroat competition bet!een the 0 brands.
Pe-si: J>AI 5CI MA7A;K the trendiest attempt of Pepsi to attack its counterparts. 7ell, Pepsi ads !ith its catchy story lines and happening slogans are fast becoming one of the hot favourites on television . Pepsi ads engage vie!ers in animal love and simple story !ell told. Pepsi people design different ads according to the occasions. Buring the cricket !orld cup special ads !ere designed, featuring cricketers and the ne! slogan !as Jnothing official about itK and this gives a higher edge to Pepsi over &oca &ola, the official drink of the !orld cup. 5!
The counter attack &oke and Thums Dp. This can clearly be seen in Pepsi s ad !here they have made a mockery of the coke ad by sho!ing a shabby image of >rithik, a coke model. Pepsi tries to portray itself as a youth drink and hence it uses models for its promotions accordingly. $or example they have used Shahrukh 5han, 5a*ol, ?ani %ukher*i, Preity Qinta amongst the young generation of film stars and Sachin Tendulkar, ?ahul Bravid, Saurav 'anguly, Auvra* Singh amongst the cricketers. COCA CO"A& &oca cola is no! giving a real tough competition to Pepsi in the ad business. The latest coke s ad featuring Aish!arya ?ai and >rithik ?oshan is really giving the Pepsi ads a run for their money. &oca cola s Lthe boy meets the girl strategy is really catching up !ith the consumers. 7hether it is Aish!arya P Aamir chatting a!ay on the net and coming together because of &oca &ola or Aish!arya P >rithik fighting for their college votes and coming together because of &oca &ola has really clicked !ith the consumers. &oca cola advertisements sho!ing a family sharing their emotions and it is one thing that all the people around he !orld can identify !ith. The ads featuring Aish!arya ?ai and Aamir 5han during a certain cricket series !ere a huge success because they really motivated the family to come together and !atch cricket match, and inspired them to have &oca &ola !hile !atching the match if they !anted India to !in. &oke ads really depict the image of coke as being the !orld s no. . soft drink company. &oca &ola has also bagged in some of the most successful personalities in India. $or example big names in the film industry like Aamir 5han, Aish!arya ?ai, 5arishma 5apoor, Myotika from south, but it broke all ice !hen it aired the ads featuring >rithik ?oshan one of the biggest stars of the nation.
6"
TH%MS %P& Eatest strategy of Salman 5han going in public and thro!ing the Jgro!n up challengeK has really hit the bulls)eye. It has made Thums Dp a symbol of strength and dare and it is to such an extent that youngsters *ust for the sake of sho!ing themselves gro!n up and daring have started to drink Thums Dp. The small survey conducted sho!ed that though the boys !ere having Pepsi and &oke, they *ust mentioned Thuns Dp as their favourite drink because they think that Thums Dp is a gro!n up drink. Also as Thums Dp promote their spirit to !in, Thums Dp ads are al!ays designed in this image. This can be seen in the ads !hereas the models Sunil Shetty and Salman 5han *ump from the terrace *ust to get a Thums Dp.
0. INTERNET&
Pepsi hosts its o!n !ebsite namely !!.pepsi.com. This particular !ebsite is very attractively designed and appeals to the youth. It has very trendy look and contains the Pepsi logo and various other slogans. It caters to the Indian as !ell as international consumers. The !ebsite is very informative on the various Pepsi strategies for promoting their brand. It gives us information on the various advertisements featuring on television and also forthcoming advertisements. This !ebsite also hosts many contests exclusively available on the net and gives a!ay some cool pri8es, !hich appeal to the youth. Therefore, the !ebsite of Pepsi promotes the spirit of the young generation. Pepsi not only hosts its o!n !ebsite but it advertises on other popular !ebsites like indiatimes.com. This medium is very effective because more and more people are accessing the internet everyday .
&oca cola also hosts its o!n !ebsite named !!!.cocacola.com and it is indeed a very !ell designed and !ell)conceptuali8ed !ebsite. As you logon to
61
the !ebsite, you can see the !ords Jlife tastes goodK !hich immediately catches the attention of th vie!ers.
The !ebsite tries to promote coke as the J!orld s favourite drinkK. Dnlike Pepsi coke s !ebsite does not emphasi8e on the brand but the people !ho share their moments !ith coke. This !ebsite not only provides complete information about the company but also involves a lot of consumer interaction, !here the consumer can pose (uestions of their choice and get them ans!ered. There is also one section, !hich shares the experience of the people !ith coca)cola. These features of the !ebsite make the consumer really glued to this site and explore it more and more. &oca &ola also advertises on other popular !ebsites of the !orld and also sponsors some of their events. Thums Dp has no official !ebsite since it is a part of the coca cola company, but the company does advertise for the brands on other !ebsites.
2. S"OGANS AND "OGOS&

The slogans and logos are in the true sense a picture of the image, !hich the brand is trying to promote. Cne can identify the brand and its characteristics !ith the slogans and also the logos. In a market situation like that of Pepsi, &oke and Thums Dp, !here here is cut)throat competition and even one mistake could make them lose their market share, it is very important to be seen and heard in the market and the logos and slogans of the company help them in achieving this goal. The moment !e see a thumb and the !orks Jtaste the thunderK !e can say that it is a thums up advertisement or thums up is available some!here nearby. S0%2 $4 +2& -.5&# .7 ( 6..' ).6. (1' (1 &77&%+$>& 4).6(1 .7 ( 9#(1'.
62
Pepsi s logo is one of the most famous logos in the !orld and people can really identify !ith it. It goes along !ith Pepsi s image of being a young and trendy drink. Infact the logo is so popular !ith the youth that they even !ear accessories containing the pepsi logo. Pepsi s slogan right from the times of Jyehi hai right choice babyK to Jyeh dil maange moreK have al!ays been popular amongst both youth and to some extent has been responsible for making Pepsi a huge sell out. The latest Pepsi commercials !ith starts like Amitabh ;achhan and Preity Qinta spelling out the Pepsi s slogan Jhai koi *a!abK , in their o!n style has really caught on !ith the kids. 1ven Pepsi s slogan during the !orld cup Jnothing official about itK !as really popular among the cricket lovers. &C&A &CEA s logo is a bottle of cake !ith coca cola in a uni(ue manner !ritten on it. The bright red colour used catches the eye of the vie!er and can easily identify !ith the brand. Also the slogan of J*o chahe ho *aye coca cola en*oyNK in India is (uickly catching on !ith the people. The slogan has a very Indian touch to it and a s!eet melody. Also coca cola designs special slogans for different situations. $or example !hen it is sponsoring any cricket match then the slogan is Jeat cricket, sleep cricket, but drink only coca colaK, these slogans really !ork out because they really blend !ith the atmosphere around you
The T>D%;S DP logo and the slogan are true identity of itself. Thumbs up tries to promote the spirit of dare devilry and the desire to !in and so does its logo. $or long people in India have identified !ith thumbs up !ith its logo and the slogan, Jtaste the thunderK .This slogan has been !ith Thumbs up for (uite some time no!, and it says that once you are addicted to the strong taste of thumbs up you !ill never have any other drink.
SPONSORSHIP&
63
Sponsorship is yet another !ay to promote a brand. And this is one channel, !hich these cold drinks do not miss out on. Sponsoring entertainment, sports and other events is one !ay, !hich the three brands are counting upon to promote their brands. Pepsi advertises itself as the drink of ne! generation and hence it becomes but obvious for Pepsi to advertise at places and sponsor events !here they find young cro!d. 7e find that Pepsi sponsors concerts and a!ard functions, !hich are a hot favorite !ith the youth. 1.g. ) Pepsi sponsored the visit of %ichael Mackson to India. It also goes sponsoring college festivals. It also complete !ith coca cola for sponsorship of cricket series. It is also seen that the Indian cricket team !ears outfits sponsored by Pepsi. &C&A)&CEA is very !ell kno!n for sponsoring cricket events. It also !as the official cold drink for the !orld cup cricket. It designs special ads during these events for print as !ell as the electronic media for e.g. the slogan Jeat cricket, sleep cricket drink only coco colaK, goes very !ell as the spirit of cricket and gives the message to every cricket lover that cricket should be their favorite drink. ;ut ho!ever during this time Pepsi took the lead !ith its promotional slogan Jnothing official about itK.
&C51 also sponsors various programs and concerts. ?ecently it has also started sponsoring films to some extent, !ith the added advantage of being promoted in the movie. 1.g. Taal and Aaadein. This strategy !orks !ith the people !ho are influenced by film stars and !ould follo! and choice of theirs sho!n in the movies. T>D%;S DP mainly sponsors sport events like bungee *umping training centre s set up at various places. Ad its ads also try to sho! people !ho are daring and !ant to !in for Thumbs Dp and hence it is great hit at these sports events, especially amongst the males.
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OB ECTI!ES OF THE PROMOTIONA" STRATEG#

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6. 1nlarge your market by increasing activity in a !ider geographic area.

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A PROMOTIONA" MI$ CONTAINS THE FO""OWING PRINCIP"E FO%R E"EMENTS&'

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Stage 1& Set t(e A+)ertising B2+get&

Stage 3& Determine t(e 4e5 A+)ertising Messages&

Stage 6& De,i+e *(i,( A+)ertising Me+ia to %se&

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- Number of enquiries from advertisement - Number of enquiries converted into sales

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Test customer awareness - Number of requests for further information

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!uild a brand image

!uild customer relationship

$hange customer attitudes

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Stage One Pros ecting:

Stage !"o # $a%ing &irst 'ontact:

To save time2 send some information before "ou visit'

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'onsu/er sa(es ro/otion techni0ues:

P#$%& '&()* A +&,-.#(#/ #&'0%+$.1 $1 +2& -#$%&3 40%2 (4 2(--/ 2.0#

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