Effective Sales Promotion Techniques

What is Sales Promotion

Media and the Non-Media Marketing pressure applied for a pre-determined, limited period of time at the level of the consumer, the retailer or the wholesaler in order to stimulate trial, increase consumer demand or improve product availability.

- American Marketing Association

Sales Promotion Types

Consumer

Price Differential

Coupons Refunds/Rebates Price – pack deals Price deals

Value Promotion

Freebies/Free gifts Samples Contests/

Sweepstakes

Trade

Buying Allowances Free merchandise Allowances Cooperative ads Push money Dealers sales

contests

Sales Force

Target Incentives

Bonus Contests Sales Rallies

Contests

HLL’s Vijeyta Point System

• Points associated with every HLL product sold

• Annual regional comparison of the total points collected by a retailer.

• Gift for the winner

TVS Scooty was provided last year

Industry: FMCG

Factory Depot

Wholesaler

Retail Showroom

Shop Counter

Customer

Retail Showroom

Sales Chain

FMCG: Consumer Promotion

Consumer Promotion: FMCG

Samples

Amul Celebration

• Samples of overstock/undersold products distributed across the state on a particular day of a week.

(Region wise)

•Consumer educated on the use of the products

Freebies

Amar Toothpaste

Dental Insurance Policy free with every toothpaste (Sep’02)

Partnered with Tata AIG, Cover of Rs. 25,000

Very successful offer, a large market share cornered

Forced HLL (Pepsodent) to offer the same incentive

Source : www.magindia.com

Sweepstakes

“Britannia khao, world cup jao”

Launched on: 1st Feb 1999

Source: buiness today

Britannia cricket booklet

RunsWrappers

TRIP TO WORLD

CUP

6.4 crores empty packets exchange Sales - 20% increase during Feb-Apr Total Sales Rs. 260 crores Highest promotion recall during the world

cup(53% according to NFO MBL survey)

Impact

A contest running on a scratch off calender just like an instant lottery ticket

Contest with display

Cost effective method of sales promotion

Bru

HLL: Organics

Failure of “Buy One Get One” offer:After launch, they promoted n were not able to

compete with Pantene

Success in “Contest” Promotion : Conducted in new outlets “Bookstores” and

given Organics gift hamper Educated Consumers High Brand Recall

Trade Promotion: FMCG

Display Jo Dikhta Hai Wo Biktaa Hai… GSK Pays Rs. 500/

Month to retailers for hiring a window for Horlicks and Boost etc.

ITC pays Rs. 500/ Month to retailers for hiring a window for Ashirwaad Atta

ITC at Panwalla shops:

Minto candies worth Rs.500/- month were provided for a cigarette board display

Dealer loader

HLL for Rural Markets

Wheel In Haat, provides

incentive to sellers Sales boost up 5

times

Dealer Spiffs

Toothpaste (Rs5)

Provides Insurance policy to employees of Retailers for 2 yrs.

Premium and 6 installments paid by HLL

Perfetti’s Sales Strategy

Perfetti has divided its SKU’s into three different Sales Forces P1, P2 & P3

All 3 divisions cater to the same markets

For e.g. the 3 variants of Mentos are divided in these 3 Divisions

Perfetti’s Cross Selling

Chatar Patar, a lesser demanded product, is cross sold with Creamfills, a higher selling Product offering a discount on the combined package

Result: increase in the sales of Chatar Patar

Retail Industry

Pantaloon: Food Bazaar

Flooded with Consumer Promotions

Sales Force Incentives also very good

Trade Incentives - Retail Stores receive from

the Companies to boost their sales

Jo Dikhta Hai Wo Biktaa Hai… The Major force driving sales in the retail Industry is

VISUAL MERCHANDISING

To Gain Maximum Visibility in The Retail Store, High Incentives are to be paid to the Retail Store

ITC : Britannia :: 16% : 10% Retail Margins. So the Retailer is always interested in giving Higher visibility to ITC Products

Sales Force Incentives

Weekly Sales Targets set for every section

The Incentives become 250% on achieving 120% Sales Target

The Sales Force is encouraged to pour in ideas to increase sales

Minor alterations like giving the higher selling product more visibility

Effect Of Visual Merchandising

Shift From Brand Blocking to Category Blocking

In Categories, the Display Pattern Follows the Colour Blocking Scheme

Color Blocking done Horizontally i.e. same colored bottles in the same shelf

Before After