PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Promotional Strategies for FMCG

In the sales profession, two effective ways to get business are to go out after it, or have it come to you. The first you do by prospecting; the second through promotional strategies. Most salespeople agree it's much more pleasant and less time consuming when prospects come to them. The beauty of promotional strategies is: they plant a seed in your prospect's mind. In effect, you've made a "reservation" to be considered for future business. If your prospect has had positive e posure to you in advance, you will more easily establish the relationship, ma!e the appointment and complete the sale. "romotion can give you the name recognition you need.

OBJECTIVES OF THE PROMOTIONAL STRATEG

# successful promotional strategy multiplies the salesperson's presence and increases his effectiveness. # properly e ecuted promotional program can accomplish these ob$ectives: %. Introduce your product or service to new prospects &. 'mooth the way for setting appointments (. )ncourage more purchases by current clients *. 'timulate off+season purchases ,. -ompete with competitor's promotional efforts .. /eep present, former and future customers informed of your services

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

0. )nlarge your mar!et by increasing activity in a wider geographic area.

#ll promotional efforts aim to increase sales. 1hile advertising and sales promotion do this directly; publicity and public relations influence sales indirectly, by encouraging the buyer to thin! highly of you, your company, and your products. Most people would rather buy from a person or company they "li!e" even if they don't !now them personally.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

A PROMOTIONAL MI! CONTAINS THE FOLLO"ING PRINCIPLE FO#R ELEMENTS$%

1. ADVERTISING 2. PERSONAL SELLING 3. SALES PROMOTIONS 4. PUBLIC RELATIONS

THESE ARE OTHER T PES OF PROMOTIONAL STRATEGIES #SE& FOR FMCG PRO&#CTS$%

1. PUBLICITY 2. DIRECT MARKETING 3. VIRAL MARKETING 4. INTERNET MARKETING 5. DIGITAL MARKETING 6. WORD OF MOUTH 7. PROMOTIONAL ACTIVITIES THROUGH MEDIA

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

1. ADVERTISING:
"The means of providing the most persuasive possible selling message to the right prospects at the lowest possible cost". /otler and #rmstrong provide an alternative definition: "#dvertising is any paid form of non+personal presentation and promotion of ideas, goods and services through mass media such as newspapers, maga2ines, television or radio by an identified sponsor". #dvertising means a paid, persuasive presentation promoting you, your company, and3or your product3service. 4o matter how subtle or obvious your ad, the desired outcome can be achieved only through:

%. )ducation + Ma!ing prospects aware of yourself or your product and what you can do for them &. "reference 5ormation + 6etting the prospect to li!e you and prefer your product to the competition

(. 6enerating an In7uiry + #dvertising doesn't ma!e a customer, you do. 8ut, you must get people to tell you of their interest. The si2e and nature of your business will determine which advertising means you will use. If you're a sales consultant, it often doesn't pay for you to advertise on T9 or in newspapers. Trade $ournals can be a more effective medium. In determining which sources would best fill your needs, as! yourself some 7uestions: %. 1hat message do I want to convey: 'hould more emphasis be put on my product3service or me: &. 1hat is my target audience: ;ow can advertising e pand it: (. 1here will my target prospects most li!ely see my message: *. ;ow much can I afford to spend on advertising this year: ,. 1hen is the best time to advertise:

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

T'ere are fi(e main stages in a )ell%manage* a*(ertising +am,aign$ Stage -$ Set t'e A*(ertising O./e+ti(es$
#n advertising ob$ective is a specific communication tas! to be achieved with a specific target audience during a specified period of time. #dvertising ob$ectives fall into three main categories: <a= To inform + e.g. tell customers about a new product <b= To persuade + e.g. encourage customers to switch to a different brand <c= To remind + e.g. remind buyers where to find a product

Stage 0$ Set t'e A*(ertising B1*get$

Mar!eters should remember that the role of advertising is to create demand for a product. The amount spent on advertising should be relevant to the potential sales impact of the campaign. This, in turn will reflect the characteristics of the product being advertised.

Stage 2$ &etermine t'e 3e4 A*(ertising Messages$

'pending a lot on advertising does not guarantee success. >esearch suggests that the clarity of the advertising message is often more important than the amount spent. The advertising message must be carefully targeted to affect the target customer audience.

Stage 5$ &e+i*e )'i+' A*(ertising Me*ia to #se$

There is a variety of advertising media from which to chose. # campaign may use one or more of the media alternatives. The !ey factors in choosing the right media include: <a= >each + what proportion of the target customers will be e posed to the advertising: <b= 5re7uency + how many times will the target customer be e posed to the advertising message:

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

<c= Media Impact + where, if the target customer sees the message + will it have most impact: 5or e ample does an advertisement promoting holidays for elderly people have more impact on Television <if so, when and which channels=

Stage 6$ E(al1ate t'e res1lts of t'e A*(ertising Cam,aign$

The evaluation of an advertising campaign should focus on two !ey areas: <a= The -ommunication )ffects + is the intended message being communicated effectively and to the intended audience: <b= The 'ales )ffects + has the campaign generated the intended sales growth. This second area is much more difficult to measure.

Ma/or Met'o*s of A*(ertising 7Re,eate*l4 Getting Message O1t8

Bro+'1res or fl4ers$ Many des!top publishing and word+processing software pac!ages can produce highly attractive tri+fold <an ?., inch by %%+inch sheet folded in thirds= brochures. 8rochures can contain a great deal of information if designed well, and is becoming a common method of advertising &ire+t mail$ Mail sent directly from you to your customers can be highly customi2ed to suit their nature and needs. @ou may want to build a mailing list of your current and desired customers. -ollect addresses from customers by noticing addresses on their chec!s, as!ing them to fill out information cards, etc. /eep the list online and up+to+date. Mailing lists can 7uic!ly become out+of+date. E%mail messages$ These can be wonderful means to getting the word out about your business. Aesign your e+mail software to include a "signature line" at the end

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

of each of your e+mail messages. Many e+mail software pac!ages will automatically attach this signature line to your e+mail, if you prefer. Maga9ines$ Maga2ines ads can get 7uite e pensive. 5ind out if there's a maga2ine that focuses on your particular industry. If there is one, then the maga2ine can be very useful because it already focuses on your mar!et and potential customers. Ne)sletters$ This can be powerful means to conveying the nature of your organi2ation and its services. -onsider using a consultant for the initial design and layout. Today's des!top publishing tools can generate very interesting newsletters 7uite ine pensively.

Ne)s,a,ers 7ma/or8$ #lmost everyone reads the local, ma$or newspaper<s=. @ou can get your business in the newspaper by placing ads, writing a letter to the editor or wor!ing with a reporter to get a story written about your business. #dvertising can get 7uite e pensive. 4ewspapers are often 7uite useful in giving advice about what and how to advertise. /now when to advertise ++ this depends on the buying habits of your customers

Ne)s,a,ers 7neig'.or'oo*8$ Ironically, these are often forgotten in lieu of ma$or newspapers, yet the neighborhood newspapers are often closest to the interests of the organi2ation's sta!eholders. Online *is+1ssion gro1,s an* +'at gro1,s$ #s with e+mail, you can gain fre7uent e posure to yourself and your business by participating in online discussion groups and chat groups. 4ote, however, that many groups have strong ground rules against blatant advertising. 1hen you $oin a group, always chec! with the moderator to understand what is appropriate.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Posters an* .1lletin .oar*s$ "osters can be very powerful when placed where your customers will actually notice them. 8ut thin! of how often you've actually noticed posters and bulletin boards yourself. Ra*io anno1n+ements$ # ma$or advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for e ample, when in their cars. #ds are usually sold on a pac!age basis that considers the number of ads, the length of ads and when they are put on the air. . # ma$or consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio. Telemar3eting$ Telemar!eting uses the telephone as a direct mar!eting medium through which a variety of sales and mar!et research activities can be carried out. 1hen combined with information and management systems, it can bring trained personnel into computeri2ed contact with potential customers, and maintain that contact profitably.

Tele(ision a*s$ Many people don't even consider television ads because of the impression that the ads are very e pensive. They are more e pensive than most of ma$or forms of advertising. ;owever, with the increasing number of television networ!s and stations, businesses might find good deals for placing commercials or other forms of advertisements.

"e. ,age$ @ou probably would not have seen this means of advertising on a list of advertising methods if you had read a list even seven years ago. 4ow, advertising and promotions on the 1orld 1ide 1eb are almost commonplace. 8usinesses are developing 1eb pages sometimes $ust to appear up+to+date. -onsidering that the number of people on the web is e ponentially rising with time it has grown to be a favorable option.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

ello) Pages$ The @ellow "ages can be very effective advertising if your ads are well+ placed in the directory's categories of services, and the name of your business is descriptive of your services and3or your ad stands out <for e ample, is bolded, in a large bo on the page, etc.=. The phone company will offer free advice about placing your ad in the @ellow "ages. They usually have special pac!ages where you get a business phone line along with a certain number of ads.

Judging the effectiveness of advertising:

;ow can the effectiveness of an advertisement be $udged: The answer depends on what ob$ectives or tas!s were set for the advertisement. The table below sets out some possible ob$ectives3tas!s and how the effectiveness of the advertisement might be measured:

Advertising objective

-How success can be measured

Stimulate an increase in sales

- Number of enquiries from advertisement - Number of enquiries converted into sales

Remind customers existence of a product

of

the

- Test customer awareness both before and after the advertising campaign - Number of enquiries

nform customers

Test customer awareness - Number of requests for further information

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

!uild a brand image

-Sales -Test customer awareness of recognition and perceived values lo"alt" and #evels of repeat - #evels of customer retention

brand

!uild customer relationship

purchase

$hange customer attitudes

- %easure demographic profile of purchases - %easure t"pe of goods ordered b" new bu"ers - $ompare with previous data

"atterns have emerged which show that some sources are better for salespeople than others. The most proven promotional methods in sales of 5M-6 are, in this order: &' (erson to person contact )' Telephone contact *' (ersonal letter +' ,orm letter -' .eneral promotional mailing /' 0ispla" advertising

Bne good strategy combines a personal letter of introduction prior to personal contact. The benefits of personal contact are obvious ++ each contact has a high impact. 8oth methods can be utili2ed appropriately and successfully.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

2. PERSONAL SELLING:
Bral communication with potential buyers of a product with the intention of ma!ing a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale". "ersonal selling occurs where an individual salesperson sells a product, service or solution to a client. 'alespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships. In comparison to other mar!eting communications tools such as advertising, personal selling tends to:

1se fewer resources2 pricing is often negotiated' (roducts tend to be fairl" complex 3e'g' financial services or new cars4' There is some contact between bu"er and seller after the sale so that an ongoing relationship is built' $lient5prospects need specific information' The purchase tends to involve large sums of mone"'

There are e ceptions of course, but most personal selling ta!es place in this way. "ersonal selling involves a selling process that is summari2ed in the following 5ive 'tage "ersonal 'elling "rocess. The five stages are: &' (rospecting' )' %a6ing first contact' *' The sales call' +' 7bjection handling' -' $losing the sale'

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Stage One Pros ecting:

"rospecting is all about finding prospects, or potential new customers. "rospects should be '7ualified,' which means that they need to be assessed to see if there is business potential, otherwise it could be wasting your time. In order to 7ualify your prospects, one needs to: (lan a sales approach focused upon the needs of the customer' 0etermine which products or services best meet their needs' n order to save time2 ran6 the prospects and leave out those that are least li6el" to bu"'

Stage !"o # $a%ing &irst 'ontact:

This is the preparation that a salesperson goes through before they meet with the client, for e ample via e+mail, telephone or letter. "reparation will ma!e a call more focused. %a6e sure that "ou are on time' !efore meeting with the client2 set some objectives for the sales call' 8hat is the purpose of the call9 %a6e sure that "ou:ve done some homewor6 before meeting "our prospect' This will show that "ou are committed in the e"es of "our customer'

To save time2 send some information before "ou visit'

Stage !hree # !he Sa(es 'a(( )or Sa(es Presentation*:

It is best to be enthusiastic about your product or service. If you are not e cited about it, don't e pect your prospect to be e cited. 5ocus on the real benefits of the product or service to the specific needs of your client, rather than listing endless lists of features.

Stage &our # O+,ection -and(ing:

Bb$ection handling is the way in which salespeople tac!le obstacles put in

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

their way by clients. 'ome ob$ections may prove too difficult to handle, and sometimes the client may $ust ta!e a disli!e to you.

Stage &ive # '(osing the Sa(e:

This is a very important stage. Bften salespeople will leave without ever successfully closing a deal. Therefore, it is vital to learn the s!ills of closing. ;ust as6 for the business< - :(lease ma" ta6e an order9: This reall" wor6s well' #oo6 for bu"ing signals 3i'e' bod" language or comments made b" the client that the" want to place an order4' ,or example2 as6ing about availabilit"2 as6ing for details such as discounts2 or as6ing "ou to go over something again to clarif"' ;ust stop tal6ing2 and let the client sa" :"es': Again2 this reall" wor6s' The :summar" close: allows the salesperson to summari=e ever"thing that the client needs2 based upon the discussions during the call' ,or example2 :>ou need product ? in blue2 b" ,rida"2 pac6aged accordingl"2 and delivered to "our wife:s office': Then as6 for the order' The :alternative close: does not give the client the opportunit" to sa" no2 but forces them towards a "es' ,or example2 :0o "ou want product ? in blue or red9: $hee6"2 but effective

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

.. SALES PRO$O!IONS:
'ales promotions differ from overall promotion in that they are onetime activities. They involve special sales, demonstrations, and other business stimulators that are temporary. 'ome common promotions are: demonstrations, novelties3gifts, special events, coupons, e hibit booths, incentives, celebrity appearances, discounts, promotional offers, holiday cards, open houses, and sales. 'ales promotion is one of the four aspects of promotional mi . <The other three parts of the promotional mi are advertising, personal selling, and publicity3public relations.= 'ales promotions are non+personal promotional efforts that are designed to have an immediate impact on sales. Media and non+media mar!eting communications are employed for a pre+determined, limited time to increase consumer demand, stimulate mar!et demand or improve product availability. ) amples include:

coupons discounts and sales2 including !lue $ross Sale contests point of purchase displa"s rebates free samples 3in the case of food items4 gifts and incentive items free travel2 such as free flights'

'ales promotions can be directed at either the customer, sales staff, or distribution channel members <such as retailers=. 'ales promotions targeted at the consumer are called consumer sales promotions. 'ales promotions targeted at retailers and wholesale are called trade sales promotions. 'ome sale promotions, particularly ones with unusual methods, are considered gimmic! by many.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

'onsu/er sa(es ro/otion techni0ues:

P#$%& '&()* A +&,-.#(#/ #&'0%+$.1 $1 +2& -#$%&3 40%2 (4 2(--/ 2.0#

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

A$4)& $1+&##0-+&#* A 4$61 +2& ?0+4 $1+. +2& ($4)& 7#., +2& 42&)7. D(16)&#* A 4$61 +2(+ 45(/4 52&1 ( %.140,&# 5():4 9/ $+. D0,- 9$1* A 9$1 70)) .7 -#.'0%+4 '0,-&' $14$'&. W.99)&#* A 4$61 +2(+ ?$66)&4. L$-4+$%: B.(#'* A 9.(#' .1 52$%2 ,&44(6&4 (#& 5#$++&1 $1 %#(/.1. N&%:&#* A %.0-.1 -)(%&' .1 +2& @1&%:@ .7 ( 9.++)&. YES 01$+* A/.0# &<+#( 4()&4-&#4.1A $4 ( -0))8.0+ 7(%+ 42&&+

Se(ecting Sa(es Pro/otiona( !oo(s:

Sa/ (es:

Bffer a free amount of a product or service delivered door+to+door, sent in the mail, pic!ed up in a store, attached to another product or featured I an advertising offer. 'ou ons: -ertificate entitling the bearer to a stated saving on the purchase of a specific product: mailed, enclosed in other product, attached to them, or inserted in maga2ines and newspaper ads. 'ash Refund Offer )Re+ate*: (rovide a price reduction after a purchase rather than at the retail shop@ consumer sends a specified A(roof of (urchaseB to the manufacturer who ArefundsB part of the purchase price b" mail'

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Price Pac% )'ents of 1ea(s*: 7ffers to consumers of saving off the regular price of a product2 flagged on the label or pac6age' A reduced-price is a single pac6age sold at a reduced price 3such as two for price of one4' A branded pac6 is2 two related branded products together 3such as toothbrush and toothpaste4' Pre/iu/s )Gifts*: Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. # with+pac! premium accompanies the product inside or on the pac!age. # free in+the+mail premium is mailed to consumers who send in a proof of purchase, such as a bo top or C"' code. # sel+ li7uidating premium is sold below its normal retail price to consumers who re7uest it. &re0uenc2 Progra/s: (rograms providing rewards related to the consumerBs frequenc" and intensit" in purchasing the compan"Bs products or service'

Product 3arranties: ) plicit or implicit promises by sellers that the product will perform as specified or that the seller will fi it or refund the customerDs money during a specific period.

&ree tria(s: Inviting prospective purchasers to try the product without cost in the

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

hope that they will buy. !ie#in Pro/otions: Two or more brands or companies team up on coupons, refunds, and contests to increase pulling power. 'ross#Pro/otions: Csing one brand to advertise another displays and demonstrates ta!e place at the point+of+purchase or non+competing brand. "oint+of+"urchase <"B"= Aisplays and Aemonstrates: sale.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

4. P56LI' RELA!IONS:
"ublic relations means relating to the public in a way that wins its appreciation. It involves goodwill and community awareness. Its affect on sales is indirect and more difficult to analy2e. 'ales do improve, however, because people li!e to do business with salespeople that ta!e an interest in the community. In determining your best public relations strategies, you should consider: 1ho are your "publics:" They are groups of people who perceive you as a businessperson. 'ome publics act on their perceptions and increase your sales; others $ust appreciate you. It is important to identify each of your publics and develop strategies for improving your image with them. 5or e ample, if you sell real estate, your publics could be ban!ers, mortgage companies, customers, the community at large, other bro!ers, property managers, etc. ;ow can you reach these publics: Many methods e ist. @our choices might include: (. -ontributions of time or money to particular groups and activities, such as sponsoring Eittle Eeague, bowling teams, sporting events, cultural activities, charities, community development programs, and others . 9. "ublic speeches + @ou can offer your services to a group who would li!e to hear you spea! on your area of e pertise. %. 'taged events + @our targeted publics may sponsor picnics, anniversary parties, ball games or other events. @our presence at these occasions gives your public a chance to get to !now you in a rela ed, non+business

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

setting. '. Trade #ssociations + 8elonging to these and special interest groups provides good "> for individuals and companies. @our membership shows that you care about the industry. @ou can also develop many prospects from your participation 1hat image do you want to convey: "ublic relations can be more important to an individual salesperson than to a company. @our image is an "intangible" asset that affects sales as much as your "tangible" assets <products=. The way people see you on a day+to+day basis is very important. Therefore, public relations should be a way of life as well as a strategy for e posure. "rofessionalism is the best ">.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

7. P56LI'I!8:
"ublicity means getting e posure through the news media, utili2ing announcements prepared by companies or the media of newsworthy stories or events. "ublicity also can mean feature articles in maga2ines. This coverage or "free advertising" can have spectacular results. "ublicity often succeeds where advertising fails: Cre*i.ilit4 + 1hen people read an article in the paper or hear a story on the news, they automatically assume it is authentic and originated by the media.

S1.tlet4 8 @our message reaches many prospects, who would otherwise resist contact. "rospects "ingest" your message as news rather than as "advertising."

&ramati9ation + "ublicity can convey, "1e are your neighbors, struggling with you and doing our part to improve life around us." "ublicity, especially on a local level, helps create a feeling of community.

"ublicity ta!es many forms. @our company or a public relations firm prepares press releases. These brief, newsworthy stories highlight you or the company in a way that interests the public. The difficulty is getting the media to use the story. To have your press releases published regularly, you must have e pertise in publicity as well as good connections with the news media. 5rom a mar!eting perspective, publicity is one component of promotion. The other elements of the promotional mi are advertising, sales promotion, and personal selling. "romotion is one component of mar!eting.

8etween the client and selected target audiences, publicity is the

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

management of product+ or brand+related communications between the firm and the general public. It is primarily an informative activity <as opposed to a persuasive one=, but its ultimate goal is to promote the client's products, services, or brands. # publicity plan is a planned program aimed at obtaining favorable media coverage for an organi2ation's products + or for the organi2ation itself, to enhance its reputation and relationships with sta!eholders.

# basic tool of the publicist is the press release, but other techni7ues include telephone press conferences, in+studio media tours, multi+component video news releases <94>Ds=, newswire stories, and internet releases. 5or these releases to be used by the media, they must be of interest to the public <or at least to the mar!et segment that the media outlet is targeted to=. The releases are often customi2ed to match the media vehicle that they are being sent to. 6etting noticed by the press is all about saying the right thing at the right time. # publicist is continuously as!ing what about you or your company will pi7ue the reader's curiosity and ma!e a good story: The most successful publicity releases are related to topics of current interest. These are referred to as news pegs. #n e ample is if three people die of water poisoning, an alert publicist would release stories about the technology embodied in a water purification product. 8ut the publicist cannot wait around for the news to present opportunities. They must also try to create their own news. ) amples of this include: $ontests Art exhibitions Cvent sponsorship Arrange a speech or tal6 %a6e an anal"sis or prediction ssue a report

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Ta6e a stand on a controversial subject Arrange for a testimonial Announce an appointment $elebrate an anniversar" nvent then present an award 7rgani=e a tour of "our business or projects ssue a commendation

The advantages of publicity are low cost, and credibility <particularly if the publicity is aired in between news stories li!e those that on evening T9 newscasts=. 4ew technologies such as weblogs, web cameras, web affiliates, and convergence <phone+camera posting of pictures and videos to websites= are changing the cost+structure. The disadvantages are lac! of control over how your releases will be used, and frustration over the low percentage of releases that are ta!en up by the media.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

9. 1IRE'! $AR:E!ING:
Airect mar!eting is a sub+discipline and type of mar!eting. There are two main definitional characteristics which distinguish it from other types of mar!eting or advertising. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves unsolicited commercial communication with consumers or businesses. The second characteristic is that it is focused on driving purchases that can be attributed to a specific "call+to+action." This aspect of direct mar!eting involves an emphasis on trac!able, measurable results <!nown as "response" in the industry= regardless of medium. The most common form of direct mar!eting is direct mail, where the mar!eters use a reduced "bul! mail" postal rate to send paper mail to all postal customers in an area or all customers whose addresses have been ta!en from a list. The second most common form of direct mar!eting is telemar!eting, where mar!eters call selected <or random= telephone numbers. )mail Mar!eting, including spam may have passed telemar!eting in fre7uency at this point, and it is a third type of direct mar!eting. # fourth type of direct mar!eting, broadcast fa ing, is now less common than the other forms. # related form of mar!eting is infomercials. They are typically called "direct response" mar!eting rather than direct mar!eting because they try to achieve a direct response via television presentations. 9iewers respond via telephone or internet, credit card in hand.

Airect mar!eters also use media such as door hangers, pac!age inserts, 24

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

maga2ines, newspapers, radio, television, email, internet banner ads, pay+ per+clic! ads, billboards, transit ads, etc.

;. <IRAL $AR:E!ING:
9iral mar!eting and viral advertising refer to mar!eting techni7ues that use pre+e isting social networ!s to produce increases in brand awareness, through self+replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word+of+mouth delivered or enhanced by the networ! effects of the Internet. 9iral mar!eting is a mar!eting phenomenon that facilitates and encourages people to pass along a mar!eting message voluntarily. 9iral promotions may ta!e the form of funny video clips, interactive 5lash games, advergames, images, or even te t messages. It is claimed that a satisfied customer tells an average of three people about a product or service he3she li!es, and eleven people about a product or service, which he3she did not li!e. 9iral mar!eting is based on this natural human behaviour. The goal of mar!eters interested in creating successful viral mar!eting programs is to identify individuals with high 'ocial 4etwor!ing "otential <'4"= and create 9iral Messages that appeal to this segment of the population and have a high probability of being passed along. The term "viral mar!eting" is also sometimes used pe$oratively, to refer to stealth mar!eting campaigns++the use of varied !inds of astroturfing both online and offline to create the impression of spontaneous word of mouth enthusiasm.

25

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

=. IN!ERNE! $AR:E!ING:
Also referred to as online mar6eting or C-mar6eting2 is mar6eting that uses the nternet' The nternet has brought man" unique benefits to mar6eting that include ver" low costs in distributing information and media to a global audience' However2 the interactive nature of the media2 both in terms of instant response2 and in eliciting response at all2 are both desirable qualities of internet mar6eting' nternet mar6eting ties together both the creative and technical aspects of the internet2 including design2 development2 advertising and sales' nternet mar6eting methods include search engine mar6eting2 displa" advertising2 e-mail mar6eting2 affiliate mar6eting2 interactive advertising and viral mar6eting' nternet mar6eting is the process of growing and promoting an organi=ation using online media' nternet mar6eting does not simpl" mean :building a website: or :promoting a website:' Somewhere behind that website is a real organi=ation with real goals' nternet mar6eting strateg" includes all aspects of online advertising products2 services2 and websites2 including search engine mar6eting2 public relations2 social media2 wi6is2 mar6et research2 email mar6eting2 and direct sales' The internet mar6eter selects the best of these vehicles2 given the organi=ation:s goals and audience' Then the mar6eter helps the organi=ation execute the best mar6eting strateg"' All of this wor6 focuses on accomplishing the goals of the organi=ation'

26

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

>. 1IGI!AL $AR:E!ING:

0igital %ar6eting is the practice of promoting products and services using digital distribution channels to reach consumers in a timel"2 relevant2 personal and cost-effective manner' 8hilst digital mar6eting does include man" of the techniques and practices contained within the categor" of nternet %ar6eting2 it extends be"ond this b" including other channels with which to reach people that do not require the use of The nternet' As a result of this non-reliance on the nternet2 the field of digital mar6eting includes a whole host of elements such as mobile phones2 sms 5 mms2 displa" 5 banner ads and digital outdoor' (reviousl" seen as a stand-alone service in its own right2 it is frequentl" being seen asa domain that can and does cover most2 if not all2 of the more traditional mar6eting areas such as 0irect %ar6eting b" providing the same method of communicating with an audience but in a digital fashion

1igita( $ar%eting Pu(( vs. Push

There are ) different forms of digital mar6eting2 each of which has their pros and cons

Push
A DpushE promotional strateg" ma6es use of a compan":s sales force and trade promotion activities to create consumer demand for a product' The producer promotes the product to wholesalers2 the wholesalers promote it to retailers2 and the retailers promote it to consumers' A good example of FpushF selling is mobile phones2 where the major handset manufacturers such as No6ia promote their products via retailers such as $arphone 8arehouse' (ersonal selling and trade promotions are often the most effective promotional tools for companies such as No6ia - for example offering subsidies on the handsets to encourage retailers to sell

27

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

higher volumes' A FpushF strateg" tries to sell directl" to the consumer2 b"passing other distribution channels 3e'g' selling insurance or holida"s directl"4' 8ith this t"pe of strateg"2 consumer promotions and advertising are the most li6el" promotional tools' Pros: G $an be personali=ed -- messages received can be highl" targeted and specific to selected criteria H li6e a special offer for females2 )& "ears old or over and living in $alifornia'

G 0etailed trac6ing and reporting H mar6eters can see not onl" how man" people saw their message but also specific information about each user such as their name as well as demographic and ps"chographic data' G High Return on nvestment 3R7 4 possible H if executed the right wa"2 push messaging can help drive new revenue as well as brand reinforcement' 'ons: G $ompliance issue H each push messaging technolog" has its own set of regulations2 from minor 3RSS4 to heavil" controlled 3email and text messaging4 G Requires mechanism to deliver content H the mar6eter has to use an application to send the message2 from an email mar6eting s"stem to RSS feeders'

Pu((
A DpullE selling strateg" is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product' f the strateg" is successful2 consumers will as6 their retailers for the product2 the retailers will as6 the wholesalers2 and the wholesalers will as6 the producers' A good example of a pull is the heav" advertising and promotion of

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

children:sB to"s H mainl" on television' $onsider the recent !!$ promotional campaign for its new pre-school program' Pros: No restrictions in terms of t"pe of content or si=e as the user determine what the" want' No technolog" required to send the content2 onl" to store5displa" it' No regulations or opt-in process required

'ons: $onsiderable mar6eting effort required for users to find the message5content' #imited trac6ing capabilities H onl" total downloads2 page views2 etc' No personali=ation H content is received and viewed the same across all audiences

2!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

?@. 3ord Of $outh:

1ord of mouth promotion, also !nown as bu22 mar!eting and viral advertising, is an attempt by mar!eters to ma!e use of the word+of+mouth "channel" in promoting certain products or services. It is felt that this form of communication has valuable source credibility, as people are generally inclined to trust someone's opinion if they feel that it is offered freely and without prompting, compulsion, or personal interest in communicating the information. "eople are more inclined to believe word of mouth promotion than more formal forms of promotion <i.e. advertising= because it is assumed that the communicator was satisfied by the goods or services provided and is unli!ely to have an ulterior motive <i.e. they are not out to sell you something=. #lso, people tend to believe people whom they !now. 1hile any mar!eters places e treme value on word+of+mouth, this has historically been achieved by creating products or services that generate such "bu22" naturally. The relatively new method of 1BMM bypasses the need to create satisfied customers, and instead attempts to in$ect positive "bu22" into conversations directly. 1hile mar!eters have always hoped to achieve word+ of+mouth, many suggest there are serious ethical concerns in trying to generate word of mouth directly. 1ith the increasing use of the Internet as a research and communications platform, word of mouth has become an even more powerful and useful resource for consumers and mar!eters. Trac!ing this online 'bu22' has led to the rise of a range of services and tools !nown as 8u22 monitoring within the sphere of Bnline "ublic >elations.

3"

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

??.

Pro/otiona( Activities !hrough )Re ortersA Ne"s a ersA etc.*

the

$edia

Arti+les t'at 4o1 )rite ++ Is there something in your industry or mar!et about you have a strong impression: -onsider writing an article for the local newspaper or a maga2ine. In your article, use the opportunity to describe what you're doing to address the issue through use of your business. E*itorials an* letters to t'e e*itor ++ Bften, program providers are e perts at their service and understanding a particular need in the community; newspapers often ta!e strong interest in information about these needs, so staff should regularly offer articles <of about &FF to GFF words= for publication Press 3its ++ This !it is handy when wor!ing with the media or training employees about wor!ing with the media. The !it usually includes information about your business, pictures, information about your products, commentary from happy customers, etc.

Press releases or ne)s alerts ++ They alert the press to a ma$or event or accomplishment and re7uesting, e.g., it get included in the newspaper; they e plain who, what, where, why and when; some include pictures, 7uotes, etc. to ma!e it easier for the reporter to develop an announcement or story. P1.li+ ser(i+e anno1n+ements 7PSA8s ++ Many radio and some television stations will provide public service announcements for nonprofit efforts. Csually, these "'#Ds are free.

31

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

?2. Other Pro/otiona( Activities and Events:

Ann1al re,orts %% Aisseminate these to !ey sta!eholders; they're ripe with information if they include an overview of your year's activities, accomplishments, challenges and financial status.

Colla.oration or strategi+ restr1+t1ring %% If you're organi2ation is underta!ing these activities, celebrate it publicly.

Net)or3ing %% 'pread the word to peers, professional organi2ations and those with whom you interact outside the organi2ations, e.g., educators, consultants, suppliers, clients, etc.

No(elties%% It seems more common to find ads placed on pens and pencils, coffee cups, T+shirts, etc. These can be powerful means of advertising if indeed current and potential customers see the novelties. This condition often implies additional costs to mail novelties, print T+shirts, etc.

Presentations ++ @ou are probably an e pert at something. 5ind ways to give even short presentations, for e ample, at local seminars, -hamber of -ommerce meetings, trade shows, conventions, seminars, etc. It is ama2ing that one can send out ,FF brochures and be luc!y to get , people who respond. @et, you can give a presentation to (F people and %, of them will be very interested in staying in touch with you.

Relations'i,s )it' 3e4 sta3e'ol*ers ++ Identify at least one representative from each ma$or sta!eholder group and ta!e them to lunch once a year. 1hat seem as short, informal e changes can cultivate powerful

32

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

relationships of interest and concern.

S,e+ial e(ents ++ These tend to attract attention, and can include, e.g., an open house, granting a special award, announcing a ma$or program or service or campaign, etc.

S,e+ial offers ++ 1e see these offers all the time. They include, for e ample, coupons, discounts, sweepsta!es, sales, etc.

&actors that deter/ine the t2 e of used:

ro/otiona( too(s

)ach of the above components of the promotional mi has strengths and wea!nesses. 'everal factors should be ta!en into account in deciding which, and how much of each tool to use in a promotional mar!eting campaign:

7-8 Reso1r+e a(aila.ilit4 an* t'e +ost of ea+' ,romotional tool #dvertising <particularly on television and in the national newspapers can be very e pensive=. The overall resource budget for the promotional campaign will often determine which tools the business can afford to use.

708 Mar3et si9e an* +on+entration If a mar!et si2e is small and the number of potential buyers is small, then personal selling may be the most cost+effective promotional tool. # good e ample of this would be businesses selling software systems designed for supermar!et retailers. Bn the other hand, where mar!ets are geographically disperse or, where there are substantial numbers of potential customers, advertising is usually the most effective.

33

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

728 C1stomer information nee*s 'ome potential customers need to be provided with detailed, comple information to help them evaluate a purchase <e.g. buyers of e7uipment for nuclear power stations, or health service managers investing in the latest medical technology=. In this situation, personal selling is usually re7uired + often using selling teams rather than $ust one individual. 8y contrast, few consumers need much information about products such as ba!ed beans or bread. "romotional tools such as brand advertising and sales promotion are much more effective in this case.

34

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

S!RENG!-S AN1 3EA:NESSES O& PRO$O!IONAL !OOLS

35

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Setting Pro/otiona( EB enditures:

)stablishing the amount to spend on promotional is difficult. 8elow are some factors to consider in setting the si2e of your promotion budget.

Mar3et s'are + # company that has a higher mar!et share generally has to spend more on advertising to maintain its share.

Sales from ne) ,ro*1+ts + If a company has a high percentage of its sales from new products, it has to spend more on advertising compared to companies with established products.

Mar3et gro)t' + -ompanies competing in fast+growing mar!ets should spend comparatively more on advertising.

Plant +a,a+it4 + If a company has a lot of unused plant capacity, it should spend more on advertising to stimulate sales of product.

Pro*1+t ,ri+e + 8oth very high+priced <and premium= products and very low+priced <or discount= products re7uire higher ad e penditures because, in both cases, price is an important factor in the buying decision. The buyer has to be convinced <through advertising= that the product is a good value.

Pro*1+t :1alit4 + ;igher 7uality products re7uire greater advertising effort because of the need to convince the consumer that the product is uni7ue Brea*t' of ,ro*1+t line + -ompanies with a broad line of products have to spend more on advertising compared to companies with

36

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

speciali2ed lines.

Ine pensive "romotion 'uggestions:

If your promotion budget is small, below are some ine pensive, appropriate and effective methods of promotion for the new food processor include: H "ersonal selling H "roduct demonstrations H Airect mail H 8usiness cards H @ellow "age listing H 'eminars H 4ewsletters H -ontests H 5lyers H 1indow banners H 6reeting cards H 'ports team sponsor H ;ome parties H )thnic services + languages spo!en

37

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Rationalising +osts
5M-6 companies will have to increase their ad spends to sustain their mar!et shares. 1hat is vital is an 5M-6 companyDs ability to !eep its operating margins high enough to sustain that rise in ad spends. "ut differently, 5M-6 companies should be able to prune their costs. That is why almost all 5M-6 players in India are constantly wor!ing on ways to trim their costs. 'ome have been able to show heartwarming results. -onsider Marico. The company has been bogged down by high material costs, which is at a high of ,GI of its sales. That is why Marico has ta!en up to total costs management practices and has roped in #nderson -onsulting to advice on its cost initiative. 'ays ;arsh Mariwala, MaricoDs managing director J1e are loo!ing at building an aggressive cost structure, which will help in improving our marginsK. Aabur too needs to loo! at its cost matri proactively. 5or, AaburDs margins are low and the company wants to hi!e its ad spends. The only way out for Aabur is to rationali2e its costs. 5M-6 ma$ors cannot escape hi!ing their ad spends in the emerging post+ 1TB scenario and so they need to review their cost structure.

"'4 Promos;
Mar!eters have reali2ed that advertising is not enough. In fact research has proved time and again that direct mar!eting and promos are the engines for driving the numbers. #nd then customers these days are becoming e tremely Jdeal orientedK. They have bargains and go out of their way to grab freebies and discounts. #lso, unli!e ads, promos give measurable results to the client. J"romotions are more interactive than ads, and they also entice the consumers to experience the brand or the service2E sa"s Sunil Ihurana of 3

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

$entur" Advertisers and (romoters2 a &--"ear-old promotions compan"' D8ith road shows and demos2 the client can also establish direct contact with its customers and get their feedbac62E he adds' "romos especially come in handy when the mar!et is wor!ing at eroding the brand loyalty of a rival product. J"romos are more effective in brand switching than advertising because here the consumer has actually e perienced the product,K says a direct mar!eting consultant.

#lso, with mounting competition and undifferentiated advertising, promos bring in a breath of fresh air for the consumer. JIt bridges the gap between advertising and sales purchase, clears the clutter and helps Lon+the+ fenceD customers ma!e the right purchase decision,K says 4ath.

#nd then with rising media costs, how many corporate can afford to advertise: "romotions instead are a cost+effective alternative. -orporates li!e li7uor and tobacco companies are left with little choice but to resort to these off beat mar!eting efforts. 4ot surprisingly, most of the ad agencies are now loo!ing at adding # LpromotionD or direct mar!eting arm to their e isting bread and butter advertising business. They are trying to reposition themselves as multi+service and multi+discipline agencies so that they can offer everything that the client is loo!ing for. In any case, there is a great overlap between these mar!eting strategies. 5or instance, when /raft 5oods recently launched Tang in India, they decided to go in for aggressive nationwide promotional campaign to boost sales. The main aim was to set Tang apart from the desi >asna. 'o, they did wet sampling of the product across various retail outlets in eight cities.

3!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

&on<t o(er*o It$

That is a golden rule that mar!eters should follow while designing promotions. 8rands that use too much sales promotions are perceived to be LcheapD in the long run. There are other downsides of e cessive promos too. There are promos that may seem to achieve results, but those are only short+ term. -ritics argue that offers simply pre+pone the purchase and donDt add any incremental value to it. 5or instance, if a shirt brand is has a promotion where they ar offering a tote bag free with purchase of two shirts for the month of Mune. JThe sales may pic! up during the offer, but there is a loss of sale in the following month,K says /el!ar of 'hopperDs 'top. J1hich means the people who had the buy the shirt in Muly simply preponed their purchase due to the offer.K

#lso, over promoted products often leave customers as!ing for more. #nd thatDs e actly what has happened to the white goods and consumer durables segment. JThe industry has spoilt the consumer with so many offers and freebies, that they are no longer willing to buy the goods at the full+price,K says /el!ar. 1hich means unless there is a %*+inch colour T9 free with a washing machine, it is not a good dealN

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Promotions (s A*(ertisements$
"romos are interactive, ads represents one+way communication. "romos are directed consumers at an individual or personal level. #ds have a mass appeal. "romos lead to immediate, short+term results. #ds are a part of a long+ term brand building strategy. "romos add tangible value to goods and services, whereas ads are intangible. "romos are more cost+effective than ads. The results of promotions can be measured more easily, whereas in case of ad itDs difficult to measure the profitability benefits. "romotions can be targeted at niche target audiences.

A*(ertisement tells= ,romotion sells$

Free.ies$
1ith every ;arvest 6old ?FF gms bread, you get a free pac!et of two sweet buns. ) change your old mi ie for a new Inalsa Ma ie food processor and get >s.%FFF off. 8uy any two ) calibur shirts or rousers and get a wristwatch worth >s.(,F free. Bn buying >s.(FFF worth of fabric from 8'E 'uitings, you may win a

41

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

%, day trip to 'wit2erland. 8uy a /oda! /8%F camera and win free films for a lifetime. If you score ?FI or above in e ams, get a 'oft 'erve 'undae worth >s.(( free at McAonalds. These are called 5>))8I)'' The freebie is supposed to ma!e or rather actually force you to buy a particular brand, try it and stic! to it. They want you to !eep them in business forever. 5rom consumer durables to fast moving consumer goods <5M-6= giants to white goods companies to auto manufacturers, everyone is into promotions.

T'e .ottom line is $ Advertising on(2 te((sA +ut ro/otion se((sC

There was a time when advertising was considered as the only tool for boosting sales. The perception is no longer the same. 1ith mar!eters e ploring the legitimacy of other tactics and below+the+line activities li!e contests, offers, promos, discounts and freebies, days of plain+vanilla advertising have passed. D8hile sales promos have been around since the JKBs2 it is field promotion through road shows2 demos2 sampling and so on2 that has become extremel" popular of late2E explains Atul Nath2 0irector of $andid2 a promotion mar6eting firm' The turning point for the promotion industr" came during the &LLL $ric6et 8orld $up2 when man" corporate giants launched aggressive promotional activit"' Remember D!rittania Ihao2 8orld $up ;aoE9

42

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The success of these promos gave the industry the proof it needed to ta!e the plunge, eyes closed. The second ma$or boost for this sector came with the ama2ing stories of #I1# and #!ai; within a span of a year these newcomers had captured the imagination of the country with their unbelievable e change offers. JThe advertisement industry is growing and continues to be the most important part of the mar!eting mi K, clarifies 4ath. J the ad spends are growing but the promos budgets is growing faster than ad spends per second. In short, companies are no longer averse to e ploring alternatives for selling their product or enhancing the brand image. Today promotions have ta!en the centre stage along with advertising. 'o, the mar!eting teams and brand managers chal! a separate strategy for direct mar!eting and promotions. n short2 companies are no longer averse to exploring alternatives for selling their product or enhancing the brand image'

Today promotions have ta!en the centre stage along with advertising. 'o, the mar!eting teams and brand managers chal! a separate strategy for direct mar!eting and promotions.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

-#') 'TCAI)'
CASE ST#& ARIEL CHAMPIONSHIP "HITES FREE TENNIS LESSONS AT TESCO PROCTER > GAMBLE #

CASE ST#& 0
RIBENA % "IN CARS THAT MA?E O#R &A& LOO? COOL GLA!O SMITH ?LINE

CASE ST#& 2
PEPSI= CO?E AN& TH#MS #P

44

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

CASE ST#&

ARIEL CHAMPIONSHIP "HITES FREE TENNIS LESSONS AT TESCO PROCTER > GAMBLE #?

O./e+ti(es$ Trial Te+'ni:1es$

A)areness

Free Mail%In

6ac%ground:
#riel washing powder is a specially formulated detergent that !eeps whites loo!ing whiter for longer. 5or the last two years, #riel had run advertising campaigns, featuring Tim ;enman, to demonstrate its ability to !eep whites Lchampionship whiteD wash after wash. These had failed to ma!e inroads into the !ey competitorDs target audience of #8 mid+family mothers.

O./e+ti(es$ To generate incremental trial and sales of #riel in Tesco stores.

To enhance the association of #riel with tennis and the Eawn Tennis 45

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

#ssociation. To ma!e significant inroads into the !ey competitorDs core mar!et.

To build on previous L-hampionship 1hitesD campaigns and create a point of differencefor #riel in a mar!et of perceived parity.

Strateg4$
To target #8 mothers with children aged ,+%& who research indicated had a high interest in tennis. To ma!e #riel synonymous with !eeping tennis whites white, building on research that indicated consumers perceive this as a torture test for any detergent. To develop an alliance with the Eawn Tennis #ssociation that would emphasise the brandDs strong $u taposition with playing tennis. To create an added value in+store promotion offering a reward for every purchase of #riel.

S1mmar4$
The offer to Tesco customers was a free tennis lesson from an ET# licensed, 7ualified coach in return for the purchase of any #riel product. To claim their tennis lesson consumers were as!ed to mail their till receipt and a -, stamped addressed envelope to the offer address. In return, they received a boo!let containing a voucher for one free introductory tennis lesson lasting one hour and valued at up to O&,. The boo! also included a directory of over &FF participating coaches nationwide. 7n receipt of the boo6let2 the consumers telephoned their chosen 46

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

coach to boo6 a lesson stating that the" had an Ariel ,ree Tennis Moucher' The promotion was launched during the first wee6 of 8imbledon when the interest in tennis reaches its pea6' ;umorous radio advertisements were a !ey part of the communication painting an amusing picture of individuals who were li!ely to benefit from free tennis lessons. In store support included end+aisle displays with hanging banners, shelf bar!ers, #, leaflets and shippers

E(e/ents:
Aesign and artwor!. "rint and production. #greement for use of Tim ;enman on promotional materials. "B' distribution. ET# agreement' >adio advertising. >ecruitment of coaches. >esponse management.

Me+'ani+s$
-@ &ISCO#NT OFFER$ >adio advertisements and in+store "B' invited consumers to purchase any #riel product in Tesco and claim a free tennis lesson.

5ollowing purchase consumers mailed their till receipt and a -, stamped addressed envelope to the offer address 47

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Bnly one application per person was permitted and any one under the age of %? re7uired the signature of a parent or guardian.

;ouseholds were able to submit multiple applications <for members of the household= provided each claim was accompanied by a separate proof of purchase. #pplicants received a boo!let containing a directory of participating ET# coaches and a voucher for a free one+hour tennis lesson.

#pplicants selected their coach and then telephoned him3her to boo! a lesson stating that they had an #riel 5ree Tennis Eesson voucher.

Materials$ ;anging banners.

#, leaflets. 'helf bar!ers. Aisplay shippers. Airectory3voucher boo!lets.

Res1lts$ The campaign resulted in a (?I sales uplift of #riel in Tesco stores.
There were %F0,*,F free tennis lesson redemptions over the %F+wee!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

promotional period. The promotion was a !ey part of the &FF( J-hampionship 1hitesK campaign that resulted in #riel becoming the C/Ds mar!et leading washing detergent for the first time in * years. Mar!et share increased by ,I. Aata collected from the redemption process added %FF,FFF new names to #rielDs database

4!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

CASE ST#&
GLA!O SMITH ?LINE

RIBENA % "IN CARS THAT MA?E O#R &A& LOO? COOL

O./e+ti(es$ Te+'ni:1es$

A)areness Trial Free Item Pri9e Promotions

Ba+3gro1n*$
Traditionally >ibena had been targeted at mothers and children ' ;istorically, promotional activity had been price led. GFI of sales to the Lout of homeD mar!et were to teenagers and young adults.

O./e+ti(es$
To drive trial, awareness and conse7uently sales of >ibena. To position the brand with teenagers and young adults as the Ldrin! for meD.

Strateg4$ The promotion needed to communicate with this core mar!et <%?+(*
year olds= and provide an irreverent concept that will appeal to Lthe child in themD

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

# fully integrated through the line campaign was re7uired with a strong incentive to purchase.

The brand e7uity, >ibenaberry, was to feature strongly in the promotion.

S1mmar4$
Cni7ue >I8)4#8)>>@ !ey rings, with eyes that popped out when s7uee2ed, were housed in the nec! collars of the three million promotional bottles of >ibena under the tagline L6row+Cp Bne AayD. 8ottle collars coolD. also carried details of an instant win mechanic with the chee!y headline L1in -ars that ma!e your Aad loo! There were &, pri2es of second hand cars. 4on+ winners had a further opportunity to enter by answering a simple 7uestion on+line. The promotion was supported with T9 and *? sheet posters above the line as well as wobblers, bunting and shelf bar!ers at point of sale.

Elements$ Aesign
#TE advertising "remiums 1ebsite entries #greement with -apri -lub International <to give assistance with car purchase= "oint of 'ale 1inners list

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Me+'ani+s$
-@ FREE ITEM A ON PAC?$

The free >I8)4#8)>>@ !ey rings were mounted inside the bottle collars of the promotional pac!s.

'trong "B' around the store drew attention to the offer.

0@ PRIBE PROMOTION A INSTANT "IN$

Instructions on the bottle collar told purchasers to loo! at the reverse of the bottle label to find out if they were a winner. Eosers were given the opportunity to try again by answering a simple 7uestion on the website. 1inners telephoned to register their winning label and then completed the

entry form on the reverse of the label and sent it to the offer address. 1inners received O&,FFF cash to purchase a second hand car that would have made their Aad loo! cool. #n additional O,FF was given to cover insurance. The O&FFF was based on a car with . months road ta and %F months MBT. 4o purchase was necessary and plain paper entries were submitted to the offer address P only one per envelope. )ntries were restricted to those aged %0 or over. The promoter accepted no responsibility for the cars selected, the cost of a

52

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

safety inspection being included in the pri2e.

)ntrants were responsible for ensuring they had a full driving license.

Materials$
>I8)4#8)>>@ !ey rings. Image 8ottle collars. *? sheet posters. In+store posters. 5ree standing units. 8unting. 'helf bar!iers and wobblers. Trade presienters.

Res1lts$
>ibena ,FFml achieved its highest monthly value sales ever. Cp *...I against same period previous year ' 'ingle serveDs highest monthly sales for & years P up ?I versus #ugust &FFF. >ibena carton <although un+promoted= achieved its highest sales for && months. >ibena became 4o.% selling soft drin! <including carbonates= in a number of accounts P high streets, forecourts and independents. 'ales value in #irport 'ervices moved >ibena ,FFml from 4o. &0 brand to 4o. & brand in the soft drin!s sector. >I8)4#8)>>@ !ey ring became a Lmust haveD with consumers writing and calling to find out how to get hold of one.

Comment$
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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The !ey ring and the car complemented each other perfectly. The novel premium and impactful "B' were instrumental in hitting the right note with this e tremely difficult target mar!et.

CASE ST#&

CASE ST#& ON PEPSI= CO?E AN& TH#MS #P 8efore advertising a product, itDs very important to position a product. &efinition of ,ositioning$ "ositioning is the act of designing the companyDs offerings and image and occupy a distinctive place in the target mar!etDs mind. The end result of positioning is the successful creation of a mar!et+focused value proposition, a cogent reason why the target segment should buy the product.

!-E <ARIO5S S!RA!EGIES A1OP!E1 68 !-ESE 6RAN1S !O A1<ER!ISE !-EIR PRO15'!S: -@ PRINT ME&IA$ "rint media is one of the oldest forms of mar!eting. -old drin!s come into the category of impulse buying. Therefore, it is essential for them to be seen around. #lthough print media is much more infle ible than electronic media is, but it is an effective medium for companies to promote their brands a@ Hor*ing an* .anners: #s "epsi is a youth drin!, hording and banners of "epsi are generally seen at places li!e college, canteens, theatres and amusement par!s and also during entertainment shows.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The banners normally contain the famous "epsi logo and models from various fields to promote their brand name. These banners promote the spirit of the young generation.

-B-# -BE# as a brand emphasi2es more on print media as a channel of mar!eting. It believes in the concept of Jpresence mar!etingK i.e. to be seen around. Therefore, they want to Jplaster every town in redK. 5or e ample a student should not only see co!e banners and hoardings in the college campus but also when he comes out on the road, goes into a restaurant and goes into any shop. -o!eDs banners and hoardings are very catchy because of the bright red colour and the latest film stars they use for promoting their product. T;CM' C" banners and hoardings are not seen so fre7uently as "epsi and -o!e. Its banners and hoardings are seen near sports events and stadiums to promote the spirit of dare devil and courage . The banners and hoardings contain the famous Thums Cp logo and slogan featuring starts mostly li!e #!shay /umar depicting their daredevil image.

b. 4ewspapers:
4ewspapers are an efficient and common media for publicity and promotion. The advertisement and the promotional matter in news papers are generally seen by every one of us, as we all read newspapers. 4ewspapers are mainly used to promote the various offers and

55

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

discounts and the sponsored shows and events by these brands. Though it is seen that "epsi and -oca -ola are carrying out e tensive newspaper advertising, Thums Cp advertisements are not so fre7uently seen.

c. )lectronic Media:
)lectronic media is considered to be one of the most effective ways of promoting a brand. )lectronic media offers a lot of fle ibility to the companies . Bne of the latest and effective ways of electronic media is the internet. Internet is a fast growing medium of advertising. #nd even these brands are not missing out on the opportunities of advertising on the net.

0@ TELEVISION A&VERTISEMENTS$ Television advertisements play a ma$or role in portraying the image of any brand. It can be seen that there is cutthroat competition between the ( brands.

Pe,si: J;#I /BI M#1#8K the trendiest attempt of "epsi to attac! its counterparts. 1ell, "epsi ads with its catchy story lines and happening slogans are fast becoming one of the hot favourites on television . "epsi ads engage viewers in animal love and simple story well told. "epsi people design different ads according to the occasions. Auring the cric!et world cup special ads were designed, featuring cric!eters and the new slogan was Jnothing official about itK and this gives a higher edge to "epsi over -oca -ola, the official drin! of the world cup. 56

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The counter attac! -o!e and Thums Cp. This can clearly be seen in "epsiDs ad where they have made a moc!ery of the co!e ad by showing a shabby image of ;rithi!, a co!e model. "epsi tries to portray itself as a youth drin! and hence it uses models for its promotions accordingly. 5or e ample they have used 'hahru!h /han, /a$ol, >ani Mu!her$i, "reity Qinta amongst the young generation of film stars and 'achin Tendul!ar, >ahul Aravid, 'aurav 6anguly, @uvra$ 'ingh amongst the cric!eters. COCA COLA$ -oca cola is now giving a real tough competition to "epsi in the ad business. The latest co!eDs ad featuring #ishwarya >ai and ;rithi! >oshan is really giving the "epsi ads a run for their money. -oca colaDs Lthe boy meets the girlD strategy is really catching up with the consumers. 1hether it is #ishwarya P #amir chatting away on the net and coming together because of -oca -ola or #ishwarya P ;rithi! fighting for their college votes and coming together because of -oca -ola has really clic!ed with the consumers. -oca cola advertisements showing a family sharing their emotions and it is one thing that all the people around he world can identify with. The ads featuring #ishwarya >ai and #amir /han during a certain cric!et series were a huge success because they really motivated the family to come together and watch cric!et match, and inspired them to have -oca -ola while watching the match if they wanted India to win. -o!e ads really depict the image of co!e as being the worldDs no. % soft drin! company. -oca -ola has also bagged in some of the most successful personalities in India. 5or e ample big names in the film industry li!e #amir /han, #ishwarya >ai, /arishma /apoor, Myoti!a from south, but it bro!e all ice when it aired the ads featuring ;rithi! >oshan one of the biggest stars of the nation.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

TH#MS #P$ Eatest strategy of 'alman /han going in public and throwing the Jgrown up challengeK has really hit the bulls+eye. It has made Thums Cp a symbol of strength and dare and it is to such an e tent that youngsters $ust for the sa!e of showing themselves grown up and daring have started to drin! Thums Cp. The small survey conducted showed that though the boys were having "epsi and -o!e, they $ust mentioned Thuns Cp as their favourite drin! because they thin! that Thums Cp is a grown up drin!. #lso as Thums Cp promote their spirit to win, Thums Cp ads are always designed in this image. This can be seen in the ads whereas the models 'unil 'hetty and 'alman /han $ump from the terrace $ust to get a Thums Cp.

(. INTERNET$
"epsi hosts its own website namely ww.pepsi.com. This particular website is very attractively designed and appeals to the youth. It has very trendy loo! and contains the "epsi logo and various other slogans. It caters to the Indian as well as international consumers. The website is very informative on the various "epsi strategies for promoting their brand. It gives us information on the various advertisements featuring on television and also forthcoming advertisements. This website also hosts many contests e clusively available on the net and gives away some cool pri2es, which appeal to the youth. Therefore, the website of "epsi promotes the spirit of the young generation. "epsi not only hosts its own website but it advertises on other popular websites li!e indiatimes.com. This medium is very effective because more and more people are accessing the internet everyday .

-oca cola also hosts its own website named www.cocacola.com and it is indeed a very well designed and well+conceptuali2ed website. #s you logon to

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

the website, you can see the words Jlife tastes goodK which immediately catches the attention of th viewers.

The website tries to promote co!e as the JworldDs favourite drin!K. Cnli!e "epsi co!eDs website does not emphasi2e on the brand but the people who share their moments with co!e. This website not only provides complete information about the company but also involves a lot of consumer interaction, where the consumer can pose 7uestions of their choice and get them answered. There is also one section, which shares the e perience of the people with coca+cola. These features of the website ma!e the consumer really glued to this site and e plore it more and more. -oca -ola also advertises on other popular websites of the world and also sponsors some of their events. Thums Cp has no official website since it is a part of the coca cola company, but the company does advertise for the brands on other websites.

*. SLOGANS AN& LOGOS$

The slogans and logos are in the true sense a picture of the image, which the brand is trying to promote. Bne can identify the brand and its characteristics with the slogans and also the logos. In a mar!et situation li!e that of "epsi, -o!e and Thums Cp, where here is cut+throat competition and even one mista!e could ma!e them lose their mar!et share, it is very important to be seen and heard in the mar!et and the logos and slogans of the company help them in achieving this goal. The moment we see a thumb and the wor!s Jtaste the thunderK we can say that it is a thums up advertisement or thums up is available somewhere nearby. S0%2 $4 +2& -.5&# .7 ( 6..' ).6. (1' (1 &77&%+$>& 4).6(1 .7 ( 9#(1'.

5!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

"epsiDs logo is one of the most famous logos in the world and people can really identify with it. It goes along with "epsiDs image of being a young and trendy drin!. Infact the logo is so popular with the youth that they even wear accessories containing the pepsi logo. "epsiDs slogan right from the times of Jyehi hai right choice babyK to Jyeh dil maange moreK have always been popular amongst both youth and to some e tent has been responsible for ma!ing "epsi a huge sell out. The latest "epsi commercials with starts li!e #mitabh 8achhan and "reity Qinta spelling out the "epsiDs slogan Jhai !oi $awabK , in their own style has really caught on with the !ids. )ven "epsiDs slogan during the world cup Jnothing official about itK was really popular among the cric!et lovers. -B-# -BE#Ds logo is a bottle of ca!e with coca cola in a uni7ue manner written on it. The bright red colour used catches the eye of the viewer and can easily identify with the brand. #lso the slogan of J$o chahe ho $aye coca cola en$oyNK in India is 7uic!ly catching on with the people. The slogan has a very Indian touch to it and a sweet melody. #lso coca cola designs special slogans for different situations. 5or e ample when it is sponsoring any cric!et match then the slogan is Jeat cric!et, sleep cric!et, but drin! only coca colaK, these slogans really wor! out because they really blend with the atmosphere around you

The T;CM8' C" logo and the slogan are true identity of itself. Thumbs up tries to promote the spirit of dare devilry and the desire to win and so does its logo. 5or long people in India have identified with thumbs up with its logo and the slogan, Jtaste the thunderK .This slogan has been with Thumbs up for 7uite some time now, and it says that once you are addicted to the strong taste of thumbs up you will never have any other drin!.

SPONSORSHIP$

6"

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

'ponsorship is yet another way to promote a brand. #nd this is one channel, which these cold drin!s do not miss out on. 'ponsoring entertainment, sports and other events is one way, which the three brands are counting upon to promote their brands. "epsi advertises itself as the drin! of new generation and hence it becomes but obvious for "epsi to advertise at places and sponsor events where they find young crowd. 1e find that "epsi sponsors concerts and award functions, which are a hot favorite with the youth. ).g. + "epsi sponsored the visit of Michael Mac!son to India. It also goes sponsoring college festivals. It also complete with coca cola for sponsorship of cric!et series. It is also seen that the Indian cric!et team wears outfits sponsored by "epsi. -B-#+-BE# is very well !nown for sponsoring cric!et events. It also was the official cold drin! for the world cup cric!et. It designs special ads during these events for print as well as the electronic media for e.g. the slogan Jeat cric!et, sleep cric!et drin! only coco colaK, goes very well as the spirit of cric!et and gives the message to every cric!et lover that cric!et should be their favorite drin!. 8ut however during this time "epsi too! the lead with its promotional slogan Jnothing official about itK.

-B/) also sponsors various programs and concerts. >ecently it has also started sponsoring films to some e tent, with the added advantage of being promoted in the movie. ).g. Taal and @aadein. This strategy wor!s with the people who are influenced by film stars and would follow and choice of theirs shown in the movies. T;CM8' C" mainly sponsors sport events li!e bungee $umping training centreDs set up at various places. #d its ads also try to show people who are daring and want to win for Thumbs Cp and hence it is great hit at these sports events, especially amongst the males.

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