PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

WHAT IS PROMOTION.
Promotion is one of the four aspects of marketing. The other three parts of the marketing mix are product management, pricing, and distribution. Promotion involves disseminating information about a product, product line, brand, or company. It is comprised of four subcategories: Advertising Personal selling Sales promotion Publicity and public relations

The specification of these four variables creates a promotional mix or promotional plan. Promotion is a means of increasing the publics or industrys awareness of a business and its services or goods. A set of marketing and sales activities attached to a specific advertisement, campaign, or trade show that offers a discount or other incentive based on a time frame or use of a designated code. Sales revenue and discounts generated from a given promotion are tracked to measure their effectiveness. Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. It is not enough to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. Promotion is, therefore, about companies communicating with customers .

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

DEFINITION OF FMCG

Fast Moving Consumer Goods: This is usually an everyday low priced and low risk product that requires very little thought when purchasing. FMCG is an acronym for Fast Moving Consumer Goods. FMCG is a classification that refers to wide range of frequently purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, and other non-durables such as glassware, bulbs, batteries, and plastic goods such as buckets. Fast Moving is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

WHAT DOES PROMOTION DO FOR FMCG PRODUCTS?

Promotion has several possible objectives and many pieces of marketing promotion aim to achieve several of the following objectives at the same time: Inform Management may need to make their audience aware that their product exists, and to explain exactly what it does. This is a particularly important objective for new products. Persuade This is an important step, which helps in creating favorable attitudes towards the business and its brands. Through persuasive promotion, management will seek to persuade customers and the trade that their brand has benefits that are superior to competitors Image creation Sometimes, promoting a brand image is the only way to create differentiation in the mind of the consumer (e.g. lager advertising) Reassurance Much promotion (particularly advertising) is about reassuring customers that they have made the right choice and encouraging them to stay loyal to a brand. There are a large and growing number of promotional methods that businesses can use. The main instruments - advertising, direct response mailing, sales promotion, public relations and direct selling, are often mixed together as part of the promotional mix.

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 exposure to you in advance, you will more easily establish the relationship, make the appointment and complete the sale. Promotion can give you the name recognition you need.

OBJECTIVES OF THE PROMOTIONAL STRATEGY

A successful promotional strategy multiplies the salesperson's presence and increases his effectiveness. A properly executed promotional program can accomplish these objectives: 1. Introduce your product or service to new prospects 2. Smooth the way for setting appointments 3. Encourage more purchases by current clients 4. Stimulate off-season purchases 5. Compete with competitor's promotional efforts 6. Keep present, former and future customers informed of your services

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

7. Enlarge your market by increasing activity in a wider geographic area.

All promotional efforts aim to increase sales. While advertising and sales promotion do this directly; publicity and public relations influence sales indirectly, by encouraging the buyer to think highly of you, your company, and your products. Most people would rather buy from a person or company they "like" even if they don't know them personally.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

A PROMOTIONAL MIX CONTAINS THE FOLLOWING PRINCIPLE FOUR ELEMENTS:1. ADVERTISING 2. PERSONAL SELLING 3. SALES PROMOTIONS 4. PUBLIC RELATIONS

THESE ARE OTHER TYPES OF PROMOTIONAL STRATEGIES USED FOR FMCG PRODUCTS:-

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". Kotler and Armstrong provide an alternative definition: "Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor". Advertising means a paid, persuasive presentation promoting you, your company, and/or your product/service. No matter how subtle or obvious your ad, the desired outcome can be achieved only through:

1. Education - Making prospects aware of yourself or your product and what you can do for them 2. Preference Formation - Getting the prospect to like you and prefer your product to the competition

3. Generating an Inquiry - Advertising doesn't make a customer, you do. But, you must get people to tell you of their interest. The size 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 TV or in newspapers. Trade journals can be a more effective medium. In determining which sources would best fill your needs, ask yourself some questions: 1. What message do I want to convey? Should more emphasis be put on my product/service or me? 2. What is my target audience? How can advertising expand it? 3. Where will my target prospects most likely see my message? 4. How much can I afford to spend on advertising this year? 5. When is the best time to advertise?

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

There are five main stages in a well-managed advertising campaign: Stage 1: Set the Advertising Objectives:
An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. Advertising objectives 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 2: Set the Advertising Budget:

Marketers 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 3: Determine the key Advertising Messages:

Spending a lot on advertising does not guarantee success. Research 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 4: Decide which Advertising Media to Use:

There is a variety of advertising media from which to chose. A campaign may use one or more of the media alternatives. The key factors in choosing the right media include: (a) Reach - what proportion of the target customers will be exposed to the advertising? (b) Frequency - how many times will the target customer be exposed 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? For example does an advertisement promoting holidays for elderly people have more impact on Television (if so, when and which channels)

Stage 5: Evaluate the results of the Advertising Campaign:

The evaluation of an advertising campaign should focus on two key areas: (a) The Communication Effects - is the intended message being communicated effectively and to the intended audience? (b) The Sales Effects - has the campaign generated the intended sales growth. This second area is much more difficult to measure.

Major Methods of Advertising (Repeatedly Getting Message Out)

Brochures or flyers: Many desktop publishing and word-processing software packages can produce highly attractive tri-fold (an 8.5 inch by 11-inch sheet folded in thirds) brochures. Brochures can contain a great deal of information if designed well, and is becoming a common method of advertising Direct mail: Mail sent directly from you to your customers can be highly customized to suit their nature and needs. You may want to build a mailing list of your current and desired customers. Collect addresses from customers by noticing addresses on their checks, asking them to fill out information cards, etc. Keep the list online and up-to-date. Mailing lists can quickly become out-of-date. E-mail messages: These can be wonderful means to getting the word out about your business. Design 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 packages will automatically attach this signature line to your e-mail, if you prefer. Magazines: Magazines ads can get quite expensive. Find out if there's a magazine that focuses on your particular industry. If there is one, then the magazine can be very useful because it already focuses on your market and potential customers. Newsletters: This can be powerful means to conveying the nature of your organization and its services. Consider using a consultant for the initial design and layout. Today's desktop publishing tools can generate very interesting newsletters quite inexpensively.

Newspapers (major): Almost everyone reads the local, major newspaper(s). You can get your business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to get a story written about your business. Advertising can get quite expensive. Newspapers are often quite useful in giving advice about what and how to advertise. Know when to advertise -- this depends on the buying habits of your customers

Newspapers (neighborhood): Ironically, these are often forgotten in lieu of major newspapers, yet the neighborhood newspapers are often closest to the interests of the organization's stakeholders. Online discussion groups and chat groups: As with e-mail, you can gain frequent exposure to yourself and your business by participating in online discussion groups and chat groups. Note, however, that many groups have strong ground rules against blatant advertising. When you join a group, always check with the moderator to understand what is appropriate.

10

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Posters and bulletin boards: Posters can be very powerful when placed where your customers will actually notice them. But think of how often you've actually noticed posters and bulletin boards yourself. Radio announcements: A major advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for example, when in their cars. Ads are usually sold on a package basis that considers the number of ads, the length of ads and when they are put on the air. . A major consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio. Telemarketing: Telemarketing uses the telephone as a direct marketing medium through which a variety of sales and market research activities can be carried out. When combined with information and management systems, it can bring trained personnel into computerized contact with potential customers, and maintain that contact profitably.

Television ads: Many people don't even consider television ads because of the impression that the ads are very expensive. They are more expensive than most of major forms of advertising. However, with the increasing number of television networks and stations, businesses might find good deals for placing commercials or other forms of advertisements.

Web page: You 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. Now, advertising and promotions on the World Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to appear up-to-date. Considering that the number of people on the web is exponentially rising with time it has grown to be a favorable option.

11

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Yellow Pages: The Yellow Pages can be very effective advertising if your ads are wellplaced in the directory's categories of services, and the name of your business is descriptive of your services and/or your ad stands out (for example, is bolded, in a large box on the page, etc.). The phone company will offer free advice about placing your ad in the Yellow Pages. They usually have special packages where you get a business phone line along with a certain number of ads.

Judging the effectiveness of advertising:

How can the effectiveness of an advertisement be judged? The answer depends on what objectives or tasks were set for the advertisement. The table below sets out some possible objectives/tasks 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

Inform customers

Test customer awareness - Number of requests for further information

12

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Build a brand image

-Sales -Test customer awareness of recognition and perceived values loyalty and Levels of repeat - Levels of customer retention

brand

Build customer relationship

purchase

Change customer attitudes

- Measure demographic profile of purchases - Measure type of goods ordered by new buyers - Compare with previous data

Patterns have emerged which show that some sources are better for salespeople than others. The most proven promotional methods in sales of FMCG are, in this order: 1. Person to person contact 2. Telephone contact 3. Personal letter 4. Form letter 5. General promotional mailing 6. Display advertising

One 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. Both methods can be utilized appropriately and successfully.

13

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

2. PERSONAL SELLING:
Oral communication with potential buyers of a product with the intention of making 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". Personal selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople 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 marketing communications tools such as advertising, personal selling tends to:

Use fewer resources, pricing is often negotiated. Products tend to be fairly complex (e.g. financial services or new cars). There is some contact between buyer and seller after the sale so that an ongoing relationship is built. Client/prospects need specific information. The purchase tends to involve large sums of money.

There are exceptions of course, but most personal selling takes place in this way. Personal selling involves a selling process that is summarized in the following Five Stage Personal Selling Process. The five stages are: 1. Prospecting. 2. Making first contact. 3. The sales call. 4. Objection handling. 5. Closing the sale.

14

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Stage One Prospecting:

Prospecting is all about finding prospects, or potential new customers. Prospects should be 'qualified,' 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 qualify your prospects, one needs to: Plan a sales approach focused upon the needs of the customer. Determine which products or services best meet their needs. In order to save time, rank the prospects and leave out those that are least likely to buy.

Stage Two - Making First Contact:

This is the preparation that a salesperson goes through before they meet with the client, for example via e-mail, telephone or letter. Preparation will make a call more focused. Make sure that you are on time. Before meeting with the client, set some objectives for the sales call. What is the purpose of the call? Make sure that you've done some homework before meeting your prospect. This will show that you are committed in the eyes of your customer.

To save time, send some information before you visit.

Stage Three - The Sales Call (or Sales Presentation):

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

Stage Four - Objection Handling:

Objection handling is the way in which salespeople tackle obstacles put in

15

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

their way by clients. Some objections may prove too difficult to handle, and sometimes the client may just take a dislike to you.

Stage Five - Closing the Sale:

This is a very important stage. Often salespeople will leave without ever successfully closing a deal. Therefore, it is vital to learn the skills of closing. Just ask for the business! - 'Please may I take an order?' This really works well. Look for buying signals (i.e. body language or comments made by the client that they want to place an order). For example, asking about availability, asking for details such as discounts, or asking you to go over something again to clarify. Just stop talking, and let the client say 'yes.' Again, this really works. The 'summary close' allows the salesperson to summarize everything that the client needs, based upon the discussions during the call. For example, 'You need product X in blue, by Friday, packaged accordingly, and delivered to your wife's office.' Then ask for the order. The 'alternative close' does not give the client the opportunity to say no, but forces them towards a yes. For example, 'Do you want product X in blue or red?' Cheeky, but effective

16

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

3. SALES PROMOTIONS:
Sales promotions differ from overall promotion in that they are onetime activities. They involve special sales, demonstrations, and other business stimulators that are temporary. Some common promotions are: demonstrations, novelties/gifts, special events, coupons, exhibit booths, incentives, celebrity appearances, discounts, promotional offers, holiday cards, open houses, and sales. Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing communications are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include:

coupons discounts and sales, including Blue Cross Sale contests point of purchase displays rebates free samples (in the case of food items) gifts and incentive items free travel, such as free flights.

Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.

17

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Consumer sales promotion techniques:

Price deal: A temporary reduction in the price, such as happy hour

Loyalty rewards program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales.

Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout, the customer is given a coupon based on products purchased. On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Point-of-sale displays:

18

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Aisle interrupter: A sign the juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: A bin full of products dumped inside. Wobbler: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon placed on the 'neck' of a bottle. YES unit: "your extra salesperson" is a pull-out fact sheet

Selecting Sales Promotional Tools:

Samples:

Offer a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product or featured I an advertising offer. Coupons: Certificate 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 magazines and newspaper ads. Cash Refund Offer (Rebate): Provide a price reduction after a purchase rather than at the retail shop: consumer sends a specified Proof of Purchase to the manufacturer who refunds part of the purchase price by mail.

19

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Price Pack (Cents of Deals): Offers to consumers of saving off the regular price of a product, flagged on the label or package. A reduced-price is a single package sold at a reduced price (such as two for price of one). A branded pack is, two related branded products together (such as toothbrush and toothpaste). Premiums (Gifts): Merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. A with-pack premium accompanies the product inside or on the package. A free in-the-mail premium is mailed to consumers who send in a proof of purchase, such as a box top or UPS code. A selliquidating premium is sold below its normal retail price to consumers who request it. Frequency Programs: Programs providing rewards related to the consumers frequency and intensity in purchasing the companys products or service.

Product Warranties: Explicit or implicit promises by sellers that the product will perform as specified or that the seller will fix it or refund the customers money during a specific period.

Free trials: Inviting prospective purchasers to try the product without cost in the

20

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

hope that they will buy. Tie-in Promotions: Two or more brands or companies team up on coupons, refunds, and contests to increase pulling power. Cross-Promotions: Using one brand to advertise another displays and demonstrates take place at the point-of-purchase or non-competing brand. Point-of-Purchase (POP) Displays and Demonstrates: sale.

21

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

4. PUBLIC RELATIONS:
Public 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 analyze. Sales do improve, however, because people like to do business with salespeople that take an interest in the community. In determining your best public relations strategies, you should consider: Who are your "publics?" They are groups of people who perceive you as a businessperson. Some publics act on their perceptions and increase your sales; others just appreciate you. It is important to identify each of your publics and develop strategies for improving your image with them. For example, if you sell real estate, your publics could be bankers, mortgage companies, customers, the community at large, other brokers, property managers, etc. How can you reach these publics? Many methods exist. Your choices might include: a. Contributions of time or money to particular groups and activities, such as sponsoring Little League, bowling teams, sporting events, cultural activities, charities, community development programs, and others . b. Public speeches - You can offer your services to a group who would like to hear you speak on your area of expertise. c. Staged events - Your targeted publics may sponsor picnics, anniversary parties, ball games or other events. Your presence at these occasions gives your public a chance to get to know you in a relaxed, non-business

22

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

setting. d. Trade Associations - Belonging to these and special interest groups provides good PR for individuals and companies. Your membership shows that you care about the industry. You can also develop many prospects from your participation What image do you want to convey? Public relations can be more important to an individual salesperson than to a company. Your 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 exposure. Professionalism is the best PR.

23

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

5. PUBLICITY:
Publicity means getting exposure through the news media, utilizing announcements prepared by companies or the media of newsworthy stories or events. Publicity also can mean feature articles in magazines. This coverage or "free advertising" can have spectacular results. Publicity often succeeds where advertising fails: Credibility - When 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.

Subtlety - Your message reaches many prospects, who would otherwise resist contact. Prospects "ingest" your message as news rather than as "advertising."

Dramatization - Publicity can convey, "We are your neighbors, struggling with you and doing our part to improve life around us." Publicity, especially on a local level, helps create a feeling of community.

Publicity takes many forms. Your 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 expertise in publicity as well as good connections with the news media. From a marketing perspective, publicity is one component of promotion. The other elements of the promotional mix are advertising, sales promotion, and personal selling. Promotion is one component of marketing.

Between the client and selected target audiences, publicity is the

24

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. A publicity plan is a planned program aimed at obtaining favorable media coverage for an organization's products - or for the organization itself, to enhance its reputation and relationships with stakeholders.

A basic tool of the publicist is the press release, but other techniques include telephone press conferences, in-studio media tours, multi-component video news releases (VNRs), newswire stories, and internet releases. For these releases to be used by the media, they must be of interest to the public (or at least to the market segment that the media outlet is targeted to). The releases are often customized to match the media vehicle that they are being sent to. Getting noticed by the press is all about saying the right thing at the right time. A publicist is continuously asking what about you or your company will pique the reader's curiosity and make a good story? The most successful publicity releases are related to topics of current interest. These are referred to as news pegs. An example is if three people die of water poisoning, an alert publicist would release stories about the technology embodied in a water purification product. But the publicist cannot wait around for the news to present opportunities. They must also try to create their own news. Examples of this include: Contests Art exhibitions Event sponsorship Arrange a speech or talk Make an analysis or prediction Issue a report

25

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Take a stand on a controversial subject Arrange for a testimonial Announce an appointment Celebrate an anniversary Invent then present an award Organize a tour of your business or projects Issue a commendation

The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in between news stories like those that on evening TV newscasts). New 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 lack of control over how your releases will be used, and frustration over the low percentage of releases that are taken up by the media.

26

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

6. DIRECT MARKETING:
Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing 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 marketing involves an emphasis on trackable, measurable results (known as "response" in the industry) regardless of medium. The most common form of direct marketing is direct mail, where the marketers use a reduced "bulk mail" postal rate to send paper mail to all postal customers in an area or all customers whose addresses have been taken from a list. The second most common form of direct marketing is telemarketing, where marketers call selected (or random) telephone numbers. Email Marketing, including spam may have passed telemarketing in frequency at this point, and it is a third type of direct marketing. A fourth type of direct marketing, broadcast faxing, is now less common than the other forms. A related form of marketing is infomercials. They are typically called "direct response" marketing rather than direct marketing because they try to achieve a direct response via television presentations. Viewers respond via telephone or internet, credit card in hand.

Direct marketers also use media such as door hangers, package inserts, 27

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

magazines, newspapers, radio, television, email, internet banner ads, payper-click ads, billboards, transit ads, etc.

7. VIRAL MARKETING:
Viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks 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 network effects of the Internet. Viral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message voluntarily. Viral promotions may take the form of funny video clips, interactive Flash games, advergames, images, or even text messages. It is claimed that a satisfied customer tells an average of three people about a product or service he/she likes, and eleven people about a product or service, which he/she did not like. Viral marketing is based on this natural human behaviour. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high Social Networking Potential (SNP) and create Viral Messages that appeal to this segment of the population and have a high probability of being passed along. The term "viral marketing" is also sometimes used pejoratively, to refer to stealth marketing campaigns--the use of varied kinds of astroturfing both online and offline to create the impression of spontaneous word of mouth enthusiasm.

28

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

8. INTERNET MARKETING:
Also referred to as online marketing or E-marketing, is marketing that uses the Internet. The Internet has brought many unique benefits to marketing that include very low costs in distributing information and media to a global audience. However, the interactive nature of the media, both in terms of instant response, and in eliciting response at all, are both desirable qualities of internet marketing. Internet marketing ties together both the creative and technical aspects of the internet, including design, development, advertising and sales. Internet marketing methods include search engine marketing, display advertising, e-mail marketing, affiliate marketing, interactive advertising and viral marketing. Internet marketing is the process of growing and promoting an organization using online media. Internet marketing does not simply mean 'building a website' or 'promoting a website'. Somewhere behind that website is a real organization with real goals. Internet marketing strategy includes all aspects of online advertising products, services, and websites, including search engine marketing, public relations, social media, wikis, market research, email marketing, and direct sales. The internet marketer selects the best of these vehicles, given the organization's goals and audience. Then the marketer helps the organization execute the best marketing strategy. All of this work focuses on accomplishing the goals of the organization.

29

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

9. DIGITAL MARKETING:
Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole host of elements such as mobile phones, sms / mms, display / banner ads and digital outdoor. Previously seen as a stand-alone service in its own right, it is frequently being seen asa domain that can and does cover most, if not all, of the more traditional marketing areas such as Direct Marketing by providing the same method of communicating with an audience but in a digital fashion

Digital Marketing Pull vs. Push

There are 2 different forms of digital marketing, each of which has their pros and cons

Push
A push promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. A good example of "push" selling is mobile phones, where the major handset manufacturers such as Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade promotions are often the most effective promotional tools for companies such as Nokia - for example offering subsidies on the handsets to encourage retailers to sell

30

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

higher volumes. A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools. Pros: Can be personalized -- messages received can be highly targeted and specific to selected criteria like a special offer for females, 21 years old or over and living in California.

Detailed tracking and reporting marketers can see not only how many people saw their message but also specific information about each user such as their name as well as demographic and psychographic data. High Return on Investment (ROI) possible if executed the right way, push messaging can help drive new revenue as well as brand reinforcement. Cons: Compliance issue each push messaging technology has its own set of regulations, from minor (RSS) to heavily controlled (email and text messaging) Requires mechanism to deliver content the marketer has to use an application to send the message, from an email marketing system to RSS feeders.

Pull
A pull selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. A good example of a pull is the heavy advertising and promotion of

31

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

children's toys mainly on television. Consider the recent BBC promotional campaign for its new pre-school program. Pros: No restrictions in terms of type of content or size as the user determine what they want. No technology required to send the content, only to store/display it. No regulations or opt-in process required

Cons: Considerable marketing effort required for users to find the message/content. Limited tracking capabilities only total downloads, page views, etc. No personalization content is received and viewed the same across all audiences

32

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

10. Word Of Mouth:

Word of mouth promotion, also known as buzz marketing and viral advertising, is an attempt by marketers to make 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. People 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 unlikely to have an ulterior motive (i.e. they are not out to sell you something). Also, people tend to believe people whom they know. While any marketers places extreme value on word-of-mouth, this has historically been achieved by creating products or services that generate such "buzz" naturally. The relatively new method of WOMM bypasses the need to create satisfied customers, and instead attempts to inject positive "buzz" into conversations directly. While marketers have always hoped to achieve wordof-mouth, many suggest there are serious ethical concerns in trying to generate word of mouth directly. With 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 marketers. Tracking this online 'buzz' has led to the rise of a range of services and tools known as Buzz monitoring within the sphere of Online Public Relations.

33

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

11.

Promotional Activities Through (Reporters, Newspapers, etc.)

the

Media

Articles that you write -- Is there something in your industry or market about you have a strong impression? Consider writing an article for the local newspaper or a magazine. In your article, use the opportunity to describe what you're doing to address the issue through use of your business. Editorials and letters to the editor -- Often, program providers are experts at their service and understanding a particular need in the community; newspapers often take strong interest in information about these needs, so staff should regularly offer articles (of about 200 to 900 words) for publication Press kits -- This kit is handy when working with the media or training employees about working with the media. The kit usually includes information about your business, pictures, information about your products, commentary from happy customers, etc.

Press releases or news alerts -- They alert the press to a major event or accomplishment and requesting, e.g., it get included in the newspaper; they explain who, what, where, why and when; some include pictures, quotes, etc. to make it easier for the reporter to develop an announcement or story. Public service announcements (PSA)s -- Many radio and some television stations will provide public service announcements for nonprofit efforts. Usually, these PSAs are free.

34

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

12. Other Promotional Activities and Events:

Annual reports -- Disseminate these to key stakeholders; they're ripe with information if they include an overview of your year's activities, accomplishments, challenges and financial status.

Collaboration or strategic restructuring -- If you're organization is undertaking these activities, celebrate it publicly.

Networking -- Spread the word to peers, professional organizations and those with whom you interact outside the organizations, e.g., educators, consultants, suppliers, clients, etc.

Novelties-- 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 -- You are probably an expert at something. Find ways to give even short presentations, for example, at local seminars, Chamber of Commerce meetings, trade shows, conventions, seminars, etc. It is amazing that one can send out 500 brochures and be lucky to get 5 people who respond. Yet, you can give a presentation to 30 people and 15 of them will be very interested in staying in touch with you.

Relationships with key stakeholders -- Identify at least one representative from each major stakeholder group and take them to lunch once a year. What seem as short, informal exchanges can cultivate powerful

35

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

relationships of interest and concern.

Special events -- These tend to attract attention, and can include, e.g., an open house, granting a special award, announcing a major program or service or campaign, etc.

Special offers -- We see these offers all the time. They include, for example, coupons, discounts, sweepstakes, sales, etc.

Factors that determine the type of promotional tools used:

Each of the above components of the promotional mix has strengths and weaknesses. Several factors should be taken into account in deciding which, and how much of each tool to use in a promotional marketing campaign:

(1) Resource availability and the cost of each promotional tool Advertising (particularly on television and in the national newspapers can be very expensive). The overall resource budget for the promotional campaign will often determine which tools the business can afford to use.

(2) Market size and concentration If a market size is small and the number of potential buyers is small, then personal selling may be the most cost-effective promotional tool. A good example of this would be businesses selling software systems designed for supermarket retailers. On the other hand, where markets are geographically disperse or, where there are substantial numbers of potential customers, advertising is usually the most effective.

36

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

(3) Customer information needs Some potential customers need to be provided with detailed, complex information to help them evaluate a purchase (e.g. buyers of equipment for nuclear power stations, or health service managers investing in the latest medical technology). In this situation, personal selling is usually required often using selling teams rather than just one individual. By contrast, few consumers need much information about products such as baked beans or bread. Promotional tools such as brand advertising and sales promotion are much more effective in this case.

37

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

STRENGTHS AND WEAKNESSES OF PROMOTIONAL TOOLS

38

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Setting Promotional Expenditures:

Establishing the amount to spend on promotional is difficult. Below are some factors to consider in setting the size of your promotion budget.

Market share - A company that has a higher market share generally has to spend more on advertising to maintain its share.

Sales from new products - 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.

Market growth - Companies competing in fast-growing markets should spend comparatively more on advertising.

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

Product price - Both very high-priced (and premium) products and very low-priced (or discount) products require higher ad expenditures 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.

Product quality - Higher quality products require greater advertising effort because of the need to convince the consumer that the product is unique Breadth of product line - Companies with a broad line of products have to spend more on advertising compared to companies with

39

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

specialized lines.

Inexpensive Promotion Suggestions:

If your promotion budget is small, below are some inexpensive, appropriate and effective methods of promotion for the new food processor include: Personal selling Product demonstrations Direct mail Business cards Yellow Page listing Seminars Newsletters Contests Flyers Window banners Greeting cards Sports team sponsor Home parties Ethnic services - languages spoken

40

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Rationalising costs
FMCG companies will have to increase their ad spends to sustain their market shares. What is vital is an FMCG companys ability to keep its operating margins high enough to sustain that rise in ad spends. Put differently, FMCG companies should be able to prune their costs. That is why almost all FMCG players in India are constantly working on ways to trim their costs. Some have been able to show heartwarming results. Consider Marico. The company has been bogged down by high material costs, which is at a high of 59% of its sales. That is why Marico has taken up to total costs management practices and has roped in Anderson Consulting to advice on its cost initiative. Says Harsh Mariwala, Maricos managing director We are looking at building an aggressive cost structure, which will help in improving our margins. Dabur too needs to look at its cost matrix proactively. For, Daburs margins are low and the company wants to hike its ad spends. The only way out for Dabur is to rationalize its costs. FMCG majors cannot escape hiking their ad spends in the emerging post- WTO scenario and so they need to review their cost structure.

Why Promos?
Marketers have realized that advertising is not enough. In fact research has proved time and again that direct marketing and promos are the engines for driving the numbers. And then customers these days are becoming extremely deal oriented. They have bargains and go out of their way to grab freebies and discounts. Also, unlike ads, promos give measurable results to the client. Promotions are more interactive than ads, and they also entice the consumers to experience the brand or the service, says Sunil Khurana of 41

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Century Advertisers and Promoters, a 15-year-old promotions company. With road shows and demos, the client can also establish direct contact with its customers and get their feedback, he adds. Promos especially come in handy when the market is working at eroding the brand loyalty of a rival product. Promos are more effective in brand switching than advertising because here the consumer has actually experienced the product, says a direct marketing consultant.

Also, with mounting competition and undifferentiated advertising, promos bring in a breath of fresh air for the consumer. It bridges the gap between advertising and sales purchase, clears the clutter and helps on-thefence customers make the right purchase decision, says Nath.

And then with rising media costs, how many corporate can afford to advertise? Promotions instead are a cost-effective alternative. Corporates like liquor and tobacco companies are left with little choice but to resort to these off beat marketing efforts. Not surprisingly, most of the ad agencies are now looking at adding A promotion or direct marketing arm to their existing 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 looking for. In any case, there is a great overlap between these marketing strategies. For instance, when Kraft Foods 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 Rasna. So, they did wet sampling of the product across various retail outlets in eight cities.

42

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Dont overdo It:

That is a golden rule that marketers should follow while designing promotions. Brands that use too much sales promotions are perceived to be cheap in the long run. There are other downsides of excessive promos too. There are promos that may seem to achieve results, but those are only shortterm. Critics argue that offers simply pre-pone the purchase and dont add any incremental value to it. For 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 June. The sales may pick up during the offer, but there is a loss of sale in the following month, says Kelkar of Shoppers Stop. Which means the people who had the buy the shirt in July simply preponed their purchase due to the offer.

Also, over promoted products often leave customers asking for more. And thats exactly what has happened to the white goods and consumer durables segment. The 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, says Kelkar. Which means unless there is a 14-inch colour TV free with a washing machine, it is not a good deal!

43

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Promotions vs Advertisements:
Promos are interactive, ads represents one-way communication. Promos are directed consumers at an individual or personal level. Ads have a mass appeal. Promos lead to immediate, short-term results. Ads are a part of a longterm brand building strategy. Promos add tangible value to goods and services, whereas ads are intangible. Promos are more cost-effective than ads. The results of promotions can be measured more easily, whereas in case of ad its difficult to measure the profitability benefits. Promotions can be targeted at niche target audiences.

Advertisement tells, promotion sells:

Freebies:
With every Harvest Gold 800 gms bread, you get a free packet of two sweet buns. Exchange your old mixie for a new Inalsa Maxie food processor and get Rs.1000 off. Buy any two Excalibur shirts or rousers and get a wristwatch worth Rs.350 free. On buying Rs.3000 worth of fabric from BSL Suitings, you may win a

44

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

15 day trip to Switzerland. Buy a Kodak KB10 camera and win free films for a lifetime. If you score 80% or above in exams, get a Soft Serve Sundae worth Rs.33 free at McDonalds. These are called FREEBIES. The freebie is supposed to make or rather actually force you to buy a particular brand, try it and stick to it. They want you to keep them in business forever. From consumer durables to fast moving consumer goods (FMCG) giants to white goods companies to auto manufacturers, everyone is into promotions.

The bottom line is : Advertising only tells, but promotion sells!

There was a time when advertising was considered as the only tool for boosting sales. The perception is no longer the same. With marketers exploring the legitimacy of other tactics and below-the-line activities like contests, offers, promos, discounts and freebies, days of plain-vanilla advertising have passed. While sales promos have been around since the 80s, it is field promotion through road shows, demos, sampling and so on, that has become extremely popular of late, explains Atul Nath, Director of Candid, a promotion marketing firm. The turning point for the promotion industry came during the 1999 Cricket World Cup, when many corporate giants launched aggressive promotional activity. Remember Brittania Khao, World Cup Jao?

45

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The success of these promos gave the industry the proof it needed to take the plunge, eyes closed. The second major boost for this sector came with the amazing stories of AIWA and Akai; within a span of a year these newcomers had captured the imagination of the country with their unbelievable exchange offers. The advertisement industry is growing and continues to be the most important part of the marketing mix, clarifies Nath. 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 exploring alternatives for selling their product or enhancing the brand image. Today promotions have taken the centre stage along with advertising. So, the marketing teams and brand managers chalk a separate strategy for direct marketing and promotions. In short, companies are no longer averse to exploring alternatives for selling their product or enhancing the brand image.

Today promotions have taken the centre stage along with advertising. So, the marketing teams and brand managers chalk a separate strategy for direct marketing and promotions.

46

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

CASE STUDIES
CASE STUDY 1
ARIEL CHAMPIONSHIP WHITES FREE TENNIS LESSONS AT TESCO PROCTER & GAMBLE U

CASE STUDY 2
RIBENA - WIN CARS THAT MAKE YOUR DAD LOOK COOL GLAXO SMITH KLINE

CASE STUDY 3
PEPSI, COKE AND THUMS UP

47

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

CASE STUDY 1 ARIEL CHAMPIONSHIP WHITES FREE TENNIS LESSONS AT TESCO PROCTER & GAMBLE UK

Objectives: Trial Techniques:

Awareness

Free Mail-In

Background:
Ariel washing powder is a specially formulated detergent that keeps whites looking whiter for longer. For the last two years, Ariel had run advertising campaigns, featuring Tim Henman, to demonstrate its ability to keep whites championship white wash after wash. These had failed to make inroads into the key competitors target audience of AB mid-family mothers.

Objectives: To generate incremental trial and sales of Ariel in Tesco stores.

To enhance the association of Ariel with tennis and the Lawn Tennis 48

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Association. To make significant inroads into the key competitors core market.

To build on previous Championship Whites campaigns and create a point of differencefor Ariel in a market of perceived parity.

Strategy:
To target AB mothers with children aged 5-12 who research indicated had a high interest in tennis. To make Ariel synonymous with keeping tennis whites white, building on research that indicated consumers perceive this as a torture test for any detergent. To develop an alliance with the Lawn Tennis Association that would emphasise the brands strong juxtaposition with playing tennis. To create an added value in-store promotion offering a reward for every purchase of Ariel.

Summary:
The offer to Tesco customers was a free tennis lesson from an LTA licensed, qualified coach in return for the purchase of any Ariel product. To claim their tennis lesson consumers were asked to mail their till receipt and a C5 stamped addressed envelope to the offer address. In return, they received a booklet containing a voucher for one free introductory tennis lesson lasting one hour and valued at up to 25. The book also included a directory of over 200 participating coaches nationwide. On receipt of the booklet, the consumers telephoned their chosen 49

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

coach to book a lesson stating that they had an Ariel Free Tennis Voucher. The promotion was launched during the first week of Wimbledon when the interest in tennis reaches its peak. Humorous radio advertisements were a key part of the communication painting an amusing picture of individuals who were likely to benefit from free tennis lessons. In store support included end-aisle displays with hanging banners, shelf barkers, A5 leaflets and shippers

Elements:
Design and artwork. Print and production. Agreement for use of Tim Henman on promotional materials. POS distribution. LTA agreement. Radio advertising. Recruitment of coaches. Response management.

Mechanics:
1. DISCOUNT OFFER: Radio advertisements and in-store POS invited consumers to purchase any Ariel product in Tesco and claim a free tennis lesson.

Following purchase consumers mailed their till receipt and a C5 stamped addressed envelope to the offer address 50

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Only one application per person was permitted and any one under the age of 18 required the signature of a parent or guardian.

Households were able to submit multiple applications (for members of the household) provided each claim was accompanied by a separate proof of purchase. Applicants received a booklet containing a directory of participating LTA coaches and a voucher for a free one-hour tennis lesson.

Applicants selected their coach and then telephoned him/her to book a lesson stating that they had an Ariel Free Tennis Lesson voucher.

Materials: Hanging banners.

A5 leaflets. Shelf barkers. Display shippers. Directory/voucher booklets.

Results: The campaign resulted in a 38% sales uplift of Ariel in Tesco stores.
There were 107,450 free tennis lesson redemptions over the 10-week

51

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

promotional period. The promotion was a key part of the 2003 Championship Whites campaign that resulted in Ariel becoming the UKs market leading washing detergent for the first time in 4 years. Market share increased by 5%. Data collected from the redemption process added 100,000 new names to Ariels database

52

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

CASE STUDY 2
RIBENA - WIN CARS THAT MAKE YOUR DAD LOOK COOL GLAXO SMITH KLINE

Objectives: Techniques:

Awareness Trial Free Item Prize Promotions

Background:
Traditionally Ribena had been targeted at mothers and children . Historically, promotional activity had been price led. 90% of sales to the out of home market were to teenagers and young adults.

Objectives:
To drive trial, awareness and consequently sales of Ribena. To position the brand with teenagers and young adults as the drink for me.

Strategy: The promotion needed to communicate with this core market (18-34
year olds) and provide an irreverent concept that will appeal to the child in them

53

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

A fully integrated through the line campaign was required with a strong incentive to purchase.

The brand equity, Ribenaberry, was to feature strongly in the promotion.

Summary:
Unique RIBENABERRY key rings, with eyes that popped out when squeezed, were housed in the neck collars of the three million promotional bottles of Ribena under the tagline Grow-Up One Day. Bottle collars cool. also carried details of an instant win mechanic with the cheeky headline Win Cars that make your Dad look There were 25 prizes of second hand cars. Non- winners had a further opportunity to enter by answering a simple question on-line. The promotion was supported with TV and 48 sheet posters above the line as well as wobblers, bunting and shelf barkers at point of sale.

Elements: Design
ATL advertising Premiums Website entries Agreement with Capri Club International (to give assistance with car purchase) Point of Sale Winners list

54

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Mechanics:
1. FREE ITEM ON PACK:

The free RIBENABERRY key rings were mounted inside the bottle collars of the promotional packs.

Strong POS around the store drew attention to the offer.

2. PRIZE PROMOTION INSTANT WIN:

Instructions on the bottle collar told purchasers to look at the reverse of the bottle label to find out if they were a winner. Losers were given the opportunity to try again by answering a simple question on the website. Winners 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. Winners received 2,000 cash to purchase a second hand car that would have made their Dad look cool. An additional 500 was given to cover insurance. The 2000 was based on a car with 6 months road tax and 10 months MOT. No purchase was necessary and plain paper entries were submitted to the offer address only one per envelope. Entries were restricted to those aged 17 or over. The promoter accepted no responsibility for the cars selected, the cost of a

55

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

safety inspection being included in the prize.

Entrants were responsible for ensuring they had a full driving license.

Materials:
RIBENABERRY key rings. Image Bottle collars. 48 sheet posters. In-store posters. Free standing units. Bunting. Shelf barkiers and wobblers. Trade presienters.

Results:
Ribena 500ml achieved its highest monthly value sales ever. Up 46.6% against same period previous year. Single serves highest monthly sales for 2 years up 8% versus August 2000. Ribena carton (although un-promoted) achieved its highest sales for 22 months. Ribena became No.1 selling soft drink (including carbonates) in a number of accounts high streets, forecourts and independents. Sales value in Airport Services moved Ribena 500ml from No. 27 brand to No. 2 brand in the soft drinks sector. RIBENABERRY key ring became a must have with consumers writing and calling to find out how to get hold of one.

Comment:
56

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The key ring and the car complemented each other perfectly. The novel premium and impactful POS were instrumental in hitting the right note with this extremely difficult target market.

CASE STUDY 3
CASE STUDY ON PEPSI, COKE AND THUMS UP Before advertising a product, its very important to position a product. Definition of positioning: Positioning is the act of designing the companys offerings and image and occupy a distinctive place in the target markets mind. The end result of positioning is the successful creation of a market-focused value proposition, a cogent reason why the target segment should buy the product.

THE VARIOUS STRATEGIES ADOPTED BY THESE BRANDS TO ADVERTISE THEIR PRODUCTS: 1. PRINT MEDIA: Print media is one of the oldest forms of marketing. Cold drinks come into the category of impulse buying. Therefore, it is essential for them to be seen around. Although print media is much more inflexible than electronic media is, but it is an effective medium for companies to promote their brands a. Hording and banners: As Pepsi is a youth drink, hording and banners of Pepsi are generally seen at places like college, canteens, theatres and amusement parks and also during entertainment shows.

57

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

COCA COLA as a brand emphasizes more on print media as a channel of marketing. It believes in the concept of presence marketing i.e. to be seen around. Therefore, they want to plaster every town in red. For example a student should not only see coke 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. Cokes banners and hoardings are very catchy because of the bright red colour and the latest film stars they use for promoting their product. THUMS UP banners and hoardings are not seen so frequently as Pepsi and Coke. 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 Up logo and slogan featuring starts mostly like Akshay Kumar depicting their daredevil image.

b. Newspapers:
Newspapers 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. Newspapers are mainly used to promote the various offers and

58

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

discounts and the sponsored shows and events by these brands. Though it is seen that Pepsi and Coca Cola are carrying out extensive newspaper advertising, Thums Up advertisements are not so frequently seen.

c. Electronic Media:
Electronic media is considered to be one of the most effective ways of promoting a brand. Electronic media offers a lot of flexibility to the companies . One of the latest and effective ways of electronic media is the internet. Internet is a fast growing medium of advertising. And even these brands are not missing out on the opportunities of advertising on the net.

2. TELEVISION ADVERTISEMENTS: Television advertisements play a major role in portraying the image of any brand. It can be seen that there is cutthroat competition between the 3 brands.

Pepsi: HAI KOI JAWAB the trendiest attempt of Pepsi to attack its counterparts. Well, Pepsi ads with its catchy story lines and happening slogans are fast becoming one of the hot favourites on television . Pepsi ads engage viewers in animal love and simple story well told. Pepsi people design different ads according to the occasions. During the cricket world cup special ads were designed, featuring cricketers and the new slogan was nothing official about it and this gives a higher edge to Pepsi over Coca Cola, the official drink of the world cup. 59

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The counter attack Coke and Thums Up. This can clearly be seen in Pepsis ad where they have made a mockery of the coke ad by showing a shabby image of Hrithik, a coke model. Pepsi tries to portray itself as a youth drink and hence it uses models for its promotions accordingly. For example they have used Shahrukh Khan, Kajol, Rani Mukherji, Preity Zinta amongst the young generation of film stars and Sachin Tendulkar, Rahul Dravid, Saurav Ganguly, Yuvraj Singh amongst the cricketers. COCA COLA: Coca cola is now giving a real tough competition to Pepsi in the ad business. The latest cokes ad featuring Aishwarya Rai and Hrithik Roshan is really giving the Pepsi ads a run for their money. Coca colas the boy meets the girl strategy is really catching up with the consumers. Whether it is Aishwarya Aamir chatting away on the net and coming together because of Coca Cola or Aishwarya Hrithik fighting for their college votes and coming together because of Coca Cola has really clicked with the consumers. Coca 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 Aishwarya Rai and Aamir Khan during a certain cricket series were a huge success because they really motivated the family to come together and watch cricket match, and inspired them to have Coca Cola while watching the match if they wanted India to win. Coke ads really depict the image of coke as being the worlds no. 1 soft drink company. Coca Cola has also bagged in some of the most successful personalities in India. For example big names in the film industry like Aamir Khan, Aishwarya Rai, Karishma Kapoor, Jyotika from south, but it broke all ice when it aired the ads featuring Hrithik Roshan one of the biggest stars of the nation.

60

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

THUMS UP: Latest strategy of Salman Khan going in public and throwing the grown up challenge has really hit the bulls-eye. It has made Thums Up a symbol of strength and dare and it is to such an extent that youngsters just for the sake of showing themselves grown up and daring have started to drink Thums Up. The small survey conducted showed that though the boys were having Pepsi and Coke, they just mentioned Thuns Up as their favourite drink because they think that Thums Up is a grown up drink. Also as Thums Up promote their spirit to win, Thums Up ads are always designed in this image. This can be seen in the ads whereas the models Sunil Shetty and Salman Khan jump from the terrace just to get a Thums Up.

3. INTERNET:
Pepsi hosts its own website namely ww.pepsi.com. This particular website is very attractively designed and appeals to the youth. It has very trendy look and contains the Pepsi logo and various other slogans. It caters to the Indian as well as international consumers. The website is very informative on the various Pepsi 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 exclusively available on the net and gives away some cool prizes, which appeal to the youth. Therefore, the website of Pepsi promotes the spirit of the young generation. Pepsi not only hosts its own website but it advertises on other popular websites like indiatimes.com. This medium is very effective because more and more people are accessing the internet everyday .

Coca cola also hosts its own website named www.cocacola.com and it is indeed a very well designed and well-conceptualized website. As you logon to

61

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

The website tries to promote coke as the worlds favourite drink. Unlike Pepsi cokes website does not emphasize on the brand but the people who share their moments with coke. This website not only provides complete information about the company but also involves a lot of consumer interaction, where the consumer can pose questions of their choice and get them answered. There is also one section, which shares the experience of the people with coca-cola. These features of the website make the consumer really glued to this site and explore it more and more. Coca Cola also advertises on other popular websites of the world and also sponsors some of their events. Thums Up 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.

4. SLOGANS AND LOGOS:

The slogans and logos are in the true sense a picture of the image, which the brand is trying to promote. One can identify the brand and its characteristics with the slogans and also the logos. In a market situation like that of Pepsi, Coke and Thums Up, where here is cut-throat competition and even one mistake could make them lose their market share, it is very important to be seen and heard in the market and the logos and slogans of the company help them in achieving this goal. The moment we see a thumb and the works taste the thunder we can say that it is a thums up advertisement or thums up is available somewhere nearby. Such is the power of a good logo and an effective slogan of a brand.

62

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Pepsis logo is one of the most famous logos in the world and people can really identify with it. It goes along with Pepsis image of being a young and trendy drink. Infact the logo is so popular with the youth that they even wear accessories containing the pepsi logo. Pepsis slogan right from the times of yehi hai right choice baby to yeh dil maange more have always been popular amongst both youth and to some extent has been responsible for making Pepsi a huge sell out. The latest Pepsi commercials with starts like Amitabh Bachhan and Preity Zinta spelling out the Pepsis slogan hai koi jawab , in their own style has really caught on with the kids. Even Pepsis slogan during the world cup nothing official about it was really popular among the cricket lovers. COCA COLAs logo is a bottle of cake with coca cola in a unique manner written on it. The bright red colour used catches the eye of the viewer and can easily identify with the brand. Also the slogan of jo chahe ho jaye coca cola enjoy! in India is quickly catching on with the people. The slogan has a very Indian touch to it and a sweet melody. Also coca cola designs special slogans for different situations. For example when it is sponsoring any cricket match then the slogan is eat cricket, sleep cricket, but drink only coca cola, these slogans really work out because they really blend with the atmosphere around you

The THUMBS UP 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. For long people in India have identified with thumbs up with its logo and the slogan, taste the thunder .This slogan has been with Thumbs up for quite some time now, and it says that once you are addicted to the strong taste of thumbs up you will never have any other drink.

SPONSORSHIP:

63

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Sponsorship is yet another way to promote a brand. And this is one channel, which these cold drinks do not miss out on. Sponsoring entertainment, sports and other events is one way, which the three brands are counting upon to promote their brands. Pepsi advertises itself as the drink of new generation and hence it becomes but obvious for Pepsi to advertise at places and sponsor events where they find young crowd. We find that Pepsi sponsors concerts and award functions, which are a hot favorite with the youth. E.g. - Pepsi sponsored the visit of Michael Jackson to India. It also goes sponsoring college festivals. It also complete with coca cola for sponsorship of cricket series. It is also seen that the Indian cricket team wears outfits sponsored by Pepsi. COCA-COLA is very well known for sponsoring cricket events. It also was the official cold drink for the world cup cricket. It designs special ads during these events for print as well as the electronic media for e.g. the slogan eat cricket, sleep cricket drink only coco cola, goes very well as the spirit of cricket and gives the message to every cricket lover that cricket should be their favorite drink. But however during this time Pepsi took the lead with its promotional slogan nothing official about it.

COKE also sponsors various programs and concerts. Recently it has also started sponsoring films to some extent, with the added advantage of being promoted in the movie. E.g. Taal and Yaadein. This strategy works with the people who are influenced by film stars and would follow and choice of theirs shown in the movies. THUMBS UP mainly sponsors sport events like bungee jumping training centres set up at various places. Ad its ads also try to show people who are daring and want to win for Thumbs Up and hence it is great hit at these sports events, especially amongst the males.

64