Sales Promotions - Presentation Transcript

1. Sales Promotions
2. Sales Promotion
o “ Sales Promotion is a Marketing Discipline that Utilizes a
Variety of Incentive Techniques to Structure Sales-Related Programs
Targeted to Consumers, Trade, and/or Sales Levels that Generate a
Specific, Measurable Action or Response for a Product or Service.”
3. Sales Promotion Goals Sales Promotion Has Three Goals That Relate to
Its Target audiences: To Increase Immediate Customer Sales. To Increase
Support Among the Marketer’s Sales Force. To Gain the Support of the Trade
in Marketing The Product.
4.  
5. Reasons for the Growth of Sales Promotion Sales Managers are Under
Great Pressure to Produce Results Quickly. Sales Promotion Strategies Target
Consumer, Trade, and The Sales Force. Assessment of Sales Promotion is
Relatively Easy. Cost for Results In This Industry Are Relatively Low. Why
Are Companies Spending More and More Money on Sales Promotion?
6. Consumer Promotions
o Consumer sales promotions are directed at the ultimate user of
the good or service.
 Intended to “presell” consumers so when people go into
a store, they will look for a particular brand.
 Primary strengths are their variety and flexibility.
 Many techniques that can be combined to meet almost
any kind of sales promotion planner’s objectives.
7. Types of Consumer Promotions Lucky dip Incentives Sampling Contests
Rebates Refunds Coupons
8. Contests and Lucky dip Lucky dip Participants Submit Names To Be
Included in Drawing Time Frame Much Longer Contests Compete for a Prize
Based On Some Skill or Ability Generates High Degree Of Consumer
Involvement Can Help Revive Lagging Sales
9. Refunds, Rebates, and Premiums Refunds and Rebates A Marketer’s
Offer to Return a Certain Amount Of Money to the Consumer Who Purchases
the Product. i.e cash rebate + low-value coupon Incentives Tangible Reward for
 Performing a Particular Act. Direct – Received At Time of Purchase Mail –
Proof of Purchase & Payment Be Mailed In
10. Sampling Allowing the Customer to Experience the Product or Service.
Very Effective Strategy for Introducing A New or Modified Product. Most
Common Method of Distributing Samples is Through the Mail. 9 Out of 10
Customers Prefer a Sample To a Rupee-Off Coupon to Introduce Product.
11. Trade Promotions
o Trade advertising is directed at wholesalers and retailers and
represents 50% of the total promotional spending.
o Four goals of a trade promotion are:
 Stimulate in-store merchandising or other trade support,
 Manipulate levels of inventory held by wholesalers and
retailers,
 Expand product distribution to new areas of the country
or new classes of trade,
 Create a high level of excitement about the product
among those responsible for its sale.
12. Types of Trade Promotions Point-of-Purchase Retailer Kits Contests
Lucky Dip Trade Shows Exhibits Trade Incentives Trade Deals
13. Point-of-Purchase Displays Display Distributed to Retailers Used to Call
Customer’s Attention to Product Promotions. Some of the Most Popular POP
Tools & Techniques Mechanical Product Dispensers Price Cards Signs Banners
Special Racks Carton Displays
14. Trade Promotions Trade Shows & Exhibits Allow Product
Demonstrations, Provide Information, & Answer Questions. Retailer (Dealer)
Kits Materials That Help Reps Make Sales Calls Are Often Designed as Kits.
Contain Detailed Product Specs, How-to-Do it Display, etc. Incentives
Advertisers Can Develop Contests & incentives to Motivate Resellers.
Occasional Use Only is Effective.
15. Trade Incentives and Deals Incentive Programs i.e. Used When
Introducing A New Product. Types Include Bonuses & Dealer Loadings Special
Trade Promotional Circumstances. Trade Deals Most Important Reseller Sales
Promo Technique. Types Include Buying & Advertising Allowances
16. Sponsorships and Event Marketing
o Sponsorships include a number of activities including:
  sports sponsorships,
 entertainment tours and attractions,
 festivals,
 fairs, and annual events,
 cause marketing – associating with an event that
supports a social cause, and
 arts.
17. Sponsorships and Event Marketing
o Event marketing describes the marketing practice in which a
brand is linked to an event to create experiences for customers and associate
the brand personality with a certain lifestyle.
o A sponsorship occurs when a company sponsors a sports event or
concert, or supports a charity with its resources.
o It is attempting to increase the perceived value of the sponsor’s
brand in the consumer's mind.
o Blimps, balloons, and inflatables are used at many events.
18. Other Promotions Interactive Promotions Prepaid phonecards,
telemarketing 800- and 900- number programs, & call-ins (radio FM).
Licensing Company with an established brand “rents” that brand to other
companies, allowing them to use its logo on their products. Loyalty Programs/
Continuity Programs Designed to increase customer retention by rewarding
customers for their patronage. Co-Marketing Programs Designed to build
stronger relationships between manufacturers and retailers i.e co-marketing, co-
branding, and tie-ins.
19. Four Mandates of Loyalty Programs
o Identify your best customers.
o Connect with those best customers.
o Retain the best customers, usually by rewarding them for their
patronage.
o Cultivate new “best customers”.
20. Promotion Strategies
o Promotion Can:
  Offer an immediate inducement,
 Cause customers to try a product,
 Persuade customers to buy again,
 Introduce a new product
o Promotion Can’t:
 Create an image for a brand,
 Compensate for a lack of advertising,
 Do much to compensate for a negative image,
 Reverse a sales decline.
21. Generalizations about Sales Promotions
o Temporary retail price reductions substantially increase sales
o The greater the frequency of deals, the lower the height of the
deal spike
o The frequency of deals changes the consumer’s reference price
o Higher market share brands are less deal elastic
22. Generalizations about Sales Promotions
o Advertised promotions can result in increased store traffic
o Feature advertising and displays operate synergistically to
influence sales of discounted brands
o Promotions in one product category affect sales of brands in
complementary and competitive categories
23. Have you been lured into buying …… A pack of 3 Lux soaps for the cost
of 2 Amul pizza at a discount of Rs.10 after redeeming the coupon Fa shaving
cream, for same cost but with 25% extra pack New Year card from Archies’
with free courier offer Pack of 2 AXE deodorant with a free Swiss Knife Akai
CTV in exchange offer for old CTV & Rs. 14,000 off Then you are a DEAL
PRONE CUSTOMER
24. Defining Deal Proneness
o Deal proneness has been defined as:
o "an increased propensity to respond to a purchase offer
o because the form of the purchase offer positively affects
 o purchase evaluations”
o In other words, deal prone consumers may perceive the deal as
an end in itself and just the fact that it is a deal, makes them want to make a
purchase
o Thus, deal prone individuals are suggested to be more likely to
respond to a promotional deal
25. Salient Features of Deal Proneness
o The key characteristic is INFLUENCE
o The effect is on the following behavioral aspects
o - Purchase timing
o - Brand Choice
o - Purchase Quantity
o - Category Consumption
o - Search Behavior
o - Store Choice
26. Range of Marketing Objectives & Promotional Tools
o Objective Promotional Type
o Increase repeat buying In-pack coupons, continuity programs
(frequent flier programs), etc
o Increase market share FSI coupons, targeted at other brands’
users, among brand switchers retail promotions
o Increase retailer’s promotion Trade deals, combination of
consumer frequency promotions and trade deals (big-bang theory)
o Influence product’s image Coop image advertising with image-
oriented retailers
o Increase category switching Retail promotions, FSI coupons,
large rebates
o Target deal sensitive customers Coupons, retail promotions
o Increase category consump. Retailer promotions, promotions tied
to events
 o Increase trial among Cross-couponing, free samples, trial packs,
non-users direct-mail coupons
o Liquidate short-term Trade deals, rebates, inventory financing
inventories
o Increase distribution FSI coupons (inc. demand), trade deals
(Source: Blattberg & Neslin)
27. Brand PLC Effects on Promos
28. Retailers Perceptions
o Retailers hold the view that price-cuts work best for deal prone
customers, whereas companies think free gifts work well
o Perceptions about buying role: person who comes to buy at the
store is the one who decides, hence POP about promotions is important
o Perceptions about their role in decision making: retailers believe
that they have less role in swaying a customer from one brand to another
o Response to sales promo offers: younger age group people are
more experimenting
29. Retailers Perceptions
o Communication of sales promo; WOM and television advertising
works well
o Gifts given to retailer for motivations are seen as half-hearted
attempt by companies by retailers
o Post promotion behavior: in LR customers switch back to
original brand
30. Customer Perceptions
o Reasons for switching brands: sales promo was not the only
reason for switching brands but the need for variety was also there
o Recall of brand promoted
o Willingness to buy on sales promotion offer: 63% of the
respondents did not show willingness to buy on promo offer
o Ability to induce trials: 40% of respondents mentioned that
promo had a potential for trials
 o Long-term impact: 80% of respondents said they would not
continue with purchased brand
31. Customer Perceptions
o Preference of schemes: Price-off is seen as best
o Perceived quality: 93% said they didn’t see a fall in quality
during promo offers
o Perceptions about company motivations: most respondents
believe that sales promos are intended “to increase sales”, or to “attract
switchers” or “to sell excess stocks”, intention of “value for money to
customers” ranked lower
32. Reasons For Switching Brands
o Variety/boredom
o Availability
o Packaging/ Novelty/ features
o Impulse
o Sales promotion
o Advertising
o Price
33. Thus, To Sum Up
o Models of promotions should determine:
o The objectives of the promotion
o Characteristics of the promotion type and their effects on
objectives
o The effectiveness of different promotions
o The range of promotional decisions

Brand : Axe
Company : HUL
Agency: Lowe Lintas
Brand Count : 252

I was delaying writing about this brand for the reason that I doubted whether I will be able to
do justice to my favorite brand. An Icon for sure Axe is a success story that is so difficult to

emulate. One can only marvel and enjoy.

Axe was born in France in the Year 1983. 24 years later, this brand is Unilever's Best selling
brand worldwide. It has an iconic status in whichever market it has entered. It is also one of
the rare brands which can boast of replicating its entire marketing mix across geographical
boundaries. The campaigns that you see in India is what the entire world is watching. For
those who propound Glocalisation , AXE is an exception.
Axe deo was launched in India during 1999. The brand launch was very quiet and
theoretically the brand was having the strategy of Slow Skimming i.e High Price Low
Promotion. Axe at that time was the leading men's deo brand in Europe and was popular in
India in the Grey market ( available in duty paid shops) .HLL may have launched this brand
inspired by the volume of Axe sold in the Grey market. At that time, the deo market was a
nascent one with an estimated market size of Rs 72 crore. HLL had the brands Denim and
Rexona and was ruling the market. Axe was priced at a premium above the Denim brand
which was positioned as a male deo brand.
Axe initially was launched in the fragrance Java, Alaska and Atlantic. HLL did not bother to
fine tune its Promotional mix to Indian market but just imported the promotions ....
meaning, the company just ran the ads which was popular in the Europe and other markets.

At that time , the product  was also imported from Europe.

Axe is the naughtiest brand in the Indian market. The brand is targeted at male aged 16-25 .
Internationally this brand targets male aged 15-25. I personally feel that it targets all 'Young
at heart" naughty guys. The brand has its brand values of Cool, Fashionable and Stylish. And
world over, the brand sticks to its core values. The biggest strength of this brand is the
underlying message or the DNA which is that the brand users are High on Confidence and
always for the Axe users, Girls Makes The First Move. I think the biggest competitive
advantage of this brand is its complete monopoly over this brand proposition. All its
campaigns revolve round this central theme of Seduction where Girl makes the first move.
I think it has lot of subliminal implications. The brand assumes that Men wants( Likes) to be
Seduced . That feeling ( of being seduced) gives a big boost of self confidence to a man.
Although many brands take this proposition, Axe just made it perfect.

I have seen lot of ads where girls are seen drooling over Hunks in Motorcycle or in
Readymades, or even in Innerwears, but in most of the Axe ads, there are no Hunks, only
very ordinary or even skinny kind of people getting assaulted by beautiful girls. That makes
the brand more approachable. Had Axe used a Hunk, the promotions couldn't have been so
effective. The brand managers were so wise that when they used a celebrity like Ben Affleck,
They ensured that the brand is made approachable
See the TVC here : My Favorite Axe ad
Having said that, The males seen in Axe commercials are not Losers: the ads are careful to
show them as confident ( in one way or other) or a better term will be self assured. That is
ultimate execution.
The power of this Big Idea has ensured that Indian consumers lap up the foreign
commercials without any hitch. I don't remember any India centric ad for Axe especially in
Television. And Indian consumers are not complaining either.

Along with these , the brand also ensured that customers are constantly engaged with new
fragrances and campaigns. In 2005, Axe had a high profile launch of its new fragrance
CLICK and before that there was Axe Land campaign and followed by Axe-Academy then
Axe Voodoo and the latest one Phenomenon. I have tried most of the fragrances and not all
of them are good, but I try it because I like the brand. That is the power of brand.
Axe is one of the rare brands that has embraced new media to the maximum extent. The
brand has started its Internet based marketing initiative in India with Axe Land which
involved a virtual trip to the Axe world. Globally also this brand has lot of online initiatives
which are almost always naughty.In UK the Axe is marketed as LYNX.Checkout the cool web
initiatives of this brand :
Axe- feather
Axe Effect
Axe Phenomenon
and also a blog called Evan and Gareth

Not only the brand uses TVC's to its advantage, the print ads of Axe won several accolades in
various ad events. The creatives run amok with the kind of flexibility that they get from the
positioning.Besides Print, the brand also uses outdoors to its maximum impact. Axe is a
classic example of 360 degree branding effort. Now Axe has a common message in over 70

countries where Unil ever sells this brand. Iconic in a real

One of the reports term the marketing strategy of Axe as " Adventurous Marketing" .That is
true because its risky because the brand deals with Girls & Seduction. Not always every one
may like the theme or the campaigns. In India especially there are self styled Cultural
Policemen/Women who cries foul for anything and everything. It is really surprising that so
far, Axe has escaped their AXE. That also shows that the ad agency is also careful about the
concepts put across the Indian media.
While in a more liberal markets, Axe tests new levels of " Adventures" , here the brand plays
really safe. It also ensures the campaigns run in Indian media is accepted because most often
its the entire family who watches the TV.
I know I just have touched the tip of Marketing Iceberg called Axe.

For the axe fans, check out a blog dedicated to Axe at Axeads