This document discusses sales promotions in retail. It defines sales promotion as using short-term incentives to encourage product purchases and influence buying patterns. The document outlines different types of sales promotions and reasons they are used, such as making customers stop, shop, buy more and repeat purchases. It also lists various sales promotion tools like coupons, contests and samples. Finally, it provides examples of promotions for specific retailers like KFC, Max and Apollo Pharmacy.
2. SALES PROMOTION
• It is the process of persuading the
potential customer to buy the product.
• Use of short term incentives to encourage
the purchase of the product.
• Helps to shape the buying patterns,
attract new customers and increase the
sales.
4. WHY SALES PROMOTION
Stop, Shop and Buy
Buy Bigger
Repeat Purchase
Products have become more standardized
Customers have become price sensitive
It creates an immediate positive impact on sales
Advertising has become more expensive and less
effective
Trade has become more powerful
Excessive stock
6. PROMOTIONAL MIX ELEMENTS
Advertising
Sales Promotion
Store
Atmosphere
Digital
Marketing
Personal Selling
E-Mail
Marketing
Publicity Word Of Mouth
PersonalImpersonal
Paid
Unpaid
7. KFC (ALPHA ONE MALL)
OUTSTORE PROMOTIONS
4% of monthly sales is automatically allocated to National
level promotions
Promotions include: TVCs, in film placements (especially
in South India), Billboards and store display posters
Mobile Vans for areas where KFC is not present
Earlier used to sponsor events but stopped due to some
issues
8. Out-store Promotions Contd..
For local promotions ( store wide or city wide) prior
permission needs to be taken.
Local promotion: Parking slips of Alpha One mall
were sponsored by KFC
Designing a new app to integrate all the Yum
brands.
9.
10. INSTORE PROMOTIONS
Decided by the top management to maintain
consistency
Not much instore promotions only leaflets and
some posters
Main focus on service not on promotions
Corporate Discounts: Sodexo
Local promotions: Some store give discounts to
college students
11. MAX (ALPHA ONE MALL)
OUTSTORE PROMOTIONS
Security Checks in the UB of the mall had posters
of MAX
Current scheme displayed just outside the store
3% of monthly sales allocated to promotion
2.5% outstore promotion, 0.3-0.5% instore
promotion
Outstore Promotions: Billboards, Leaflets in
newspapers, a self sponsored event Max Superstar
(held recently in Vadodara)
12.
13. INSTORE PROMOTIONS
Very less promotions in store
Combo discounts shown just above the stock which is
discounted
Walls used for current store wide promotions going on
Not much discounted products available, as already
prices are low. Just because of competitors, seasonal
sales promotions are done
A slow moving or out of fashion is put on discount just to
clear stock
Loyalty card for frequent shoppers, and loyal customers
are pre informed about any upcoming promotion
scheme.
14.
15.
16. INFO
Store Format: Convenience Store
Around 700 Reliance Fresh outlets across the
country
Store sells fruits, vegetables, groceries, staples,
fresh juice bars and dairy products
Typical Store is 3000-4000 square feet and
catchment area is 1-2 kms around
Store visited: Science City
17.
18.
19.
20. APOLLO PHARMACY
India’s largest
pharmacy retail chain
Over 2000 retail stores
across 22 states
Store Visited: Science
City
24. - Advertising
(Locally)
- Sales Promotion
- Atmosphere
- Digital
Marketing
- Email & Calling
by dedicated Call
centre
- No loyalty card
or other loyalty
program
N.A. - Word of Mouth
ENRICH HAIR SALON – HIMALAYA MALL
Impersonal Personal
26. PROMOTIONAL MIX
Sales Promotion
Sponsorship for colleges and clubs
Discount coupons during a particular period for
customers
Half yearly discount offers
Gift Vouchers
Association with movies and Enrich academy
28. Digital Marketing
Uses website and facebook page for marketing and
promoting upcoming offers for academy as well as salon
Personal selling
A dedicated team works for calling and e-mailing
Provides information on upcoming schemes, guidance
and customization of scheme
Word of Mouth
90% of the business comes through word of mouth and
loyal customers
29.
30. THE TROPHY RESTAURANT – S.G. ROAD
- Advertising
- Sales
Promotion
- Atmosphere
- Digital
Marketing
- Email & SMS
- No loyalty card
or other loyalty
program
N.A. - Word of Mouth
Impersonal Personal
31. PROMOTIONAL MIX
Advertising
News paper advertisement
In store promotion by posters
and banners
Bill boards and sign boards on road
32. PROMOTIONAL MIX
Sales promotion
15% discount for YMCA club members
Seasonal festivals
Today’s special menu & offers
35. Digital Marketing
No significant presence on Digital platform
e-mail & SMS
Email & SMS are done by executives of Tomato’s to the
customers and YMCA club members
Word of Mouth
Dominant method of promotion
37. MEASURING THE EFFECT OF RETAIL STORE PROMOTIONS ON
BRAND AND STORE SUBSTITUTION
Using store-level scanner data, the authors investigate the
effect of retail store price promotion, featuring, and displays on
sales of brands of disposable diapers within a city. Models are
developed for pooled store pairs to investigate the effect of
promotion on store substitution.
Display activity for a brand resulted in increase of sales.
One because of brand substitution within the store
Second due to individual’s store substitution
38. ECONOMIC AND UTILITARIAN BENEFITS OF MONETARY VERSUS
NON-MONETARY IN-STORE SALES PROMOTIONS
Now a days customers are getting attracted towards non-
monetary promotions
The findings show that shoppers who are prone to using non-
monetary in-store promotions seek exploration, entertainment
and value expression benefits, in common with shoppers who
are prone to monetary promotions. Both monetary and non-
monetary promotion-prone shoppers feel financially
constrained.
Non-monetary promotions may result in improved category
value and brand equity benefits.
39. REFERENCES
Kumar, V., Leone, Robert P, “Measuring the Effect of Retail Store Promotions
on Brand and Store Substitution (1988),” Journal of Marketing Research
(JMR);May88, Vol. 25 Issue 2, p178
Reid, Mike and Thompson, Peter and Mavondo, Felix T. and Brunso, Karen,
“Economic and Utilitarian Benefits of Monetary versus Non-Monetary In-
Store Sales Promotions (2015),” Journal of Marketing Management, vol. 31, no.
3-4, pp. 247-268
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