corporate strategy

2. INDEX
0 Need of Sales Promotion Schemes
0 Sales Promotion Schemes at Consumer’s Level
0 Sales Promotion Schemes at Dealer’s Level
0 Sales Promotion Schemes at Sales Person’s Level
0 Timing, Duration and Frequency of Scheme
0 Sales Promotion in an Industry
0 Industry cases

3. Need of Sales Promotion Schemes
Sales Promotion
Budget
The sales promotional budget derives the need of
sales promotion schemes. Various schemes are result
of the associated budget.
Competitive
Pressure
With more and more brands flooding the market, the
pressure to occupy display space at retail out is more.
Such occupancy can be achieved by proper sales
schemes.
Only Advertising
is insufficient
The Advertising has reached the target audience
when they were away from the store. Special tool at
the point of purchase remind the buyer. These tools
are sales promotion schemes.

4. Sales Promotion Schemes at
Consumer’s Level
1) Consumer contests with prizes
2) Price-off deals
3) Purchase price refund
4) Coupons / Cross Promotions
5) Samples / Free Trials
6) Premiums or gifts
7) Mix and Match – Percent off / unit price
8) Product Warranties
TOOLS

5. Sales Promotion Schemes at Dealer’s
Level
1) Price offs or off invoice or off-
list
2) Allowances like advertising
allowance or display allowance
3) Free goods on a certain
quantity, push money, free
specialty advertising items
TOOLS

6. Sales Promotion Schemes at Sales
Person’s Level
1) Incentive Programs
2) Sales Contest for
representatives
3) Quota allotments
TOOLS

7. Timing, Duration and Frequency of
Scheme
Timing of Scheme
• Sales Promotion
scheme should not
be announced when
retailer shelves are
full of competitive
brands.
• Weather linked
products like
woolens, lotions
used in
winter/summer etc.
Duration of Scheme
• Duration of sales
promotion scheme
should be such that a
large percentage of
customer get
exposed to the
promotion scheme.
• Low involvement
Products are
purchased more
frequently, thus
scheme duration can
be shorter for them.
Freq. of Scheme
• For High Involvement
products, to induce
sense of urgency, the
duration of offer can
be shorter.
• To attract second
wave of customers,
the announcement
of extension of deal
period works.
• If the brand is weak,
then the deal period
is usually longer.

8. SALES PROMOTION IN AN INDUSTRY
Sales promotion within an industry depends on :
1. Characteristics of the industry
e.g. In a high competitive industry , follower will follow the sales
promotion scheme of the leader
2. Characteristics of the product/service
e.g High Quality Apple products following exchange offer rather than
price discount.
3. Positioning of the firm in the industry
e.g premium brands usually do not pursue price discount schemes.
4. Characteristics of the consumer in the industry
e.g. price sensitive consumer in FMCG

9. CARBONATED BEVERAGES INDUSTRY
Sales Promotion Scheme Coca Cola Pepsi
Point of Sales(POS) Displays Yes, Excessive Yes, Excessive
Allotting SGA’S ( Refregerators, Table
umbrella, chairs etc.) to Retailers
Yes Yes
Price Discounts No No
Decorating Retailers shop Yes Yes
Consumer Contest and Prizes Yes Yes
Attractive promotional Packaging Yes Yes

10. CARBONATED BEVERAGES INDUSTRY
Usually No Price Discount :
• High competition in the industry.
• Chances of brand erosion.
• Erosion of product quality perception
in customers
Disadvantages :
Firms cannot Leverage the Price Discount Schemes to increase customer base.

11. SUPER MARKET(APPAREL RETAILS)
INDUSTRY
Selecting Sales promotion scheme must be in sync with positioning of the
firm in retail industry
e.g. Megamart is positioned at value for money, frequency of
discount schemes in a year is very less. Direct non price
promotions like events, gift vouchers are preferred.
Effect of Kouton’s Price Discount Sales Scheme through the year :
• Brand has eroded and now perceived as low quality product.

12. SUPER MARKET(APPAREL RETAILS)
INDUSTRY
Pantaloon Megamart Lifestyle Westside Wills
lifestyle
MAX
Position
ing

13. FMCG products in retail malls

14. FMCG products in retail malls
0 People buying from retail malls in Tier I city:

15. FMCG products in retail malls
0 People buying from which retail mall:
0 Big Bazar:
0 More stores
0 Best in offering products at low price

16. FMCG products in retail malls
0 People are encouraged by which types of SP:

17. FMCG products in retail malls
0 People are encouraged by which types of SP:

18. FMCG products in retail malls
0 Which retail mall offer best SP offer?
0 Big bazaar promotes through newspaper and TV.

19. Sales Promotion: Education Sector
0 Scholarships
0 Group Incentive
0 Combo Offer
0 Seasonal Offer

20. Sales Promotion: Telecom Sector
1. Tariff Discounts : Idea, Aircel and Docomo provide cheaper call rates to
attract customers. Reliance and DOCOMO (CDMA) provide unlimited free
calls on their network. MTS provides Free on-net minutes.
2. Network: Airtel and Vodafone having largest network reach in the
country and they promote their network rather than tariff.
3. POS displays:
a. Indoor : Advertising on retailer outlets through banner, poster,
dangler, glow sign board, flex and tape rolls
b. Outdoor: Outdoor hoardings, gantries, bus shelter
Consumer are price sensitive so the price discount are popular in the
industry

21. Sales Promotion: Telecom Sector

22. Consumer Promotions: Aviation Sector
0 Indigo:
0 Flight+Hotel Packages
0 Special Festive Seasons offer
0 Seat Plus
0 Base fare-price off
0 Trade discounts

23. Consumer Promotions: Aviation Sector
0 SpiceJet:
0 Price-off
0 Co-Branded cards
0 Student Discount
0 Passenger Bonanza offer

24. Consumer Promotions: Aviation Sector
0 GoAir:
0 Book 1 for 4 cities
0 Special Discounts
0 Go-Flexi

25. Consumer Promotions: Aviation Sector
0 Jet Airways:
0 JetPrevilege Offers
0 eduJetter
0 One fare pass
0 JetPrivilege Photo Contest
0 Free Ticket to Bangkok Contest

26. Consumer Promotions: Aviation Sector
0 JetKonnect:
0 Concessional fares
0 Jet2Kerala
0 JetPrevilege Offers
0 Lounge Inviation
0 SkyMart: Scratch & Win
0 Tickets on EMI
0 Discounts on 60-90 days advance bookings.

27. Consumer Promotions: Aviation Sector
0 Air India:
0 Gift coupons
0 Jaldi-Jaldi compaign
0 Companion schemes

28. Consumer Promotions: Automobile Sector

29. Consumer Promotions: Automobile Sector