Promotion Strategy of Retailing

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Promotion Strategy of Retailing

Group 5


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Retail Promotion

Retail promotion includes any communication

by a retailer that informs, persuades and/ or

reminds the target market or the prospective

segment about any aspect of that firm.


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Why Retail Promotion?

Increasing store traffic by encouraging new

shoppers to visit the store

Informing customers about goods and servicesor company attributes

Increasing sale of a given product or category

Developing the store image or the retail brand Developing demand for private brands


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Elements of the Promotional Mix

Advertising

Sales promotion

Store atmosphere

Personal sellingE-mail marketing

Publicity Word of mouth

Impersonal Personal

Paid

Unpaid


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Comparison of Promotion methods

Control Flexibility Credibility Cost

Paid Impersonal

Advertising

Sales Promotion

Sales Atmosphere

Paid Personal

Personal Selling

Unpaid Impersonal

Publicity Unpaid Personal

Word-of-mouth

High High to Moderate Moderate Low Low


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Promotions by Westside


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Westside does brand building through advertisementsin the media, but they emphasize more on their in-house promotions, which peak during the three mainfestive seasons: summer, Diwali and Christmas. A sum

of Rs. 20 crore had been allocated for advertising andpromotions. The promotions are mostly theme based,with matching decorations, live brands, & otherattractions. So last years Westside show had aHawaiian theme and this year the chain has gone the

Wild West way. This is followed by a heavy mediaburst across print, outdoors, cinema theatres andFashion TV. Trent has signed cricketer Yuvraj Singh asthe brand ambassador for the Westside chain for threeyears


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AdvertisingAdvertising


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Advertising

Any paid form ofnon-personal presentation

of ideas, goods and services by an identified

sponsor

Key aspects

Paid form

Non-personal presentation

Identified sponsor


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Objectives

To promote a new product

To support the personal selling programme

To reach out to people not accessible to salesmen

To enter a new market for attracting customers To manage competition in the market by

stimulating sales

To enhance the goodwill of the retail organization

To improve dealer relations To warn the public against imitation for the

retailer's product


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Characteristics

AdvantagesAdvantages

Attracts a large audience

Low cost per contact

Many alternative media areavailable

Control over message content;

message can be standardized

Message study possible bytarget market

Editorial content surrounds ad

Self-service operations possible

DisadvantagesDisadvantages

Standardized messageslack flexibility

Some media require largeinvestments

Geographic flexibilitylimited

Some media require long

lead time Some media have high

throwaway rate

Some media limit theability to provide detailed

information


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Raymonds: The Complete Man


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Promotional strategy has a salient role in the building up ofa stores image. In all cases, the product and its utility isimportant, but the way the product is cultivated in theminds of the consumers is also equally important.

In retail, it is not only the product but also the entire retailenvironment along with its peripherals such as storeambience, packaging, promotions, how sales peoplecommunicate about the shopping experience whichtogether go to build a brand image for the retail store.

For Raymonds, the catch-line of TheC

omplete Manadvertised extensively on electronic and print media gotreflected not only in the products but also in retailenvironment in which it is offered.


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Benefits of retail Advertisements for

Customers

It helps in creating awareness among thecustomers about the existence, prices andavailability of products at different locations

for the satisfaction of their wants It educates customers about new products

and their diverse uses

It increases the utility of existing products It encourages the manufacturers to improve

the quality of the products through R&D


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Steps in Retail Advertisement

Campaigns

Selecting Advertisement Objectives

Advertising budget for a campaign

Designing Advertising Message

Selection of Media

Running an ad campaign

Measuring Advertising effectiveness


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Classification based on target

customers

Types of Advertising

PersuasiveAdvertising

InformativeAdvertising

CorporateAdvertising

FinancialAdvertising

ClassifiedAdvertising


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Classification by content and payment


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Differences between retailer and

Manufacturer Advertising Strategies

Retailers usually have more geographicallyconcentrated target markets than manufacturers

Many retailers are unable to utilize national media as

readily as manufacturers.O

nly largest retail chains andfranchises can advertise on national TV programs

Many retailers stress prices in ads, whereasmanufacturers usually emphasize key productattributes

Retailers often display several different products in onead, whereas manufacturers tend to minimize thenumber of products mentioned in a single ad


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Sales PromotionSales Promotion


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Sales promotion

Encompasses the paid communicationactivities other than advertising, publicrelations, and personal selling thatstimulate consumer purchases and dealereffectiveness


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Objectives

Increasing short-term sales volume

Maintaining customer loyalty

Emphasizing novelty

Complementing other promotion tools


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Characteristics


Eye-catching appeal

Distinctive themes Added customer value

Draws customer traffic

Maintains loyalty

Increases impulsepurchases

Fun for customers


Difficult to terminate

Possible damage toretailers image

More stress on

frivolous selling points

Short-term effects only

Used as a supplement


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Types of Sales Promotion

Displays

Contests

Sweepstakes

Coupons

Frequent shopper

programs

Prizes

Samples

Demonstrations

Referral gifts

Other limited-time

selling efforts


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Steps in designing Retail Sales

Promotion

Set Goals

Analyze benefits

Design the offer

Identify the sources for promotion

Design the response and follow up


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Wills Lifestyle: Gift Vouchers


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ITCs Wills Lifestyle, a nationwide retail chain of exclusive speciality

stores, presented Occasions, a range of exclusive gift vouchers. These

gift vouchers are redeemable against a tempting range ofWills classic

formal wear, Wills sport relaxed wear, Wills club life evening wear and

fashion accessories.

Salient features of the Occasion exclusive gift vouchers

Presents the perfect gift for any occasion

Comes with a message card that can be personalized

A flexible Gifting option in a wide range of denominations: Rs

250; Rs 500; Rs 2000; Rs 5000; Rs 10000Gives the recipients the freedom to choose a gift of their choice

available and redeemable at all ITCs Wills Lifestyle stores

A tempting choice of formal, relaxed, and evening wear for men and

women


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Personal SellingPersonal Selling


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Personal Selling

Personal selling involves two-way

communication with prospects and customers

that allows the salesperson to address the

special needs of the customer


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Objectives

Persuade customers to purchase

Stimulate sales of impulse items or productsrelated to a consumers basic purchases

Complete transactions with customers

Provide feedback and information to thedecision-makers

Provide adequate level of customer services and

maintain customer satisfaction Create awareness of items also marketed through

the Web, mail and telemarketing


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Personal Selling Characteristics


Message can be adapted

Many ways to meetcustomer needs

High attention span

Less waste

Better response

Immediate feedback


Limited number of

customers at one time High costs

Doesnt get customer in

store

Self-service discouraged

Negative attitudes toward

salespeople


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Types of Personal Selling

Order-taking salesperson

Order-getting salesperson


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Typical Personal Selling Functions


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Effective Personal Selling tips

Always maintain a positive attitude and beenthusiastic

Always maintain good eye contact, even when

under fire

Always listen closely to an objection

Always acknowledge the objection and then

give point of view Always remember that objections are a

natural part of the sales process


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Nike: Personal Selling


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Nike utilizes a personal selling technique in all of their retail

stores. The sales associates in these stores has direct contactand interaction with the buyers of Nike merchandise. They are

the individuals that communicate directly with the consumers

who are interested in Nike products. They sales men and women

must be able to help in the process of a successful sale. They are

suppose to be knowledgeable of the brand and should be

trained in asking customers the right questions in order to find

out what they are looking for. To make sure this is done Nike will

often send Nike representatives to retail stores that sell their

sneakers to give little presentations to keep the sales associatesup to date on the merchandise and the technology behind them.

I agree with this because sometimes people that work at the

store don't really know what they selling and need to b

reminded.


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Public Relations

Communication that fosters a favorable image forthe retailer among its public

It may be

Non-personal or personalPaid or nonpaidSponsor-controlled or not controlled

Publicity: Non-personal form of public relationswhereby messages are transmitted by mass

media, The time or space provided by the mediais not paid for, and there is no identifiedcommercial sponsor


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Objectives

Increase awareness of the retailer and itsstrategy mix

Maintain or improve the company image

Show the retailer as a contributor to thepublics quality of life

Demonstrate innovativeness

Present a favorable message in a highly

believable manner Minimize total promotion costs


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Characteristics


Image can be presented orenhanced

More credible source

No costs for messages timeor space

Mass audience addressed

Carryover effects possible

People pay more attentionthan to clearly identified ads


Some retailers do notbelieve in spending on

image-relatedcommunication

Little control over publicitymessage

More suitable for short run

Costs for PR staff, planningactivities and events


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Planning a Retail Promotional Strategy


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Promotion Strategy of Retailing

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