Promotional Marketing Plan For Pringles
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ScribdTranslationsPROMOTIONAL MARKETING PLAN
Paula Alleyne
Alejandro Barreno Ruiz
Irene Gómez Manzano
Elena Gómez Sánchez
María Patón Jiménez
Raquel Pernia Sanz
Patricia Vizcaíno Muñoz
May 18, 2018
4th Promotional Marketing
Promotional plan - Group 9 1
INDEX
1. BACKGROUND ............................................................................................................................................... 3
1.1. What is Pringles? ..................................................................................................................................... 3
3
Promotional milestones
2. SITUATION ANALYSIS........................................................................................................................................ 7
2.1. Microenvironment ........................................................................................................................................... 7
2.2. Macroenvironment
2.3. SWOT Analysis.......................................................................................................................................... 13
3. OBJECTIVES ..................................................................................................................................................... 13
14
5. ACTION PLAN........................................................................................................................................ 16
Consumers
5.2. Retailers– Distribution Channel......................................................................................................... 18
5.3. Wholesalers
5.4. Sales force..................................................................................................................................... 21
6. CALENDAR.................................................................................................................................................. 23
7. CONTROL OF RESULTS
8. BUDGET ..................................................................................................................................................... 35
9. CONCLUSIONS
10. BIBLIOGRAPHY .............................................................................................................................................. 36
Promotional plan - Group 9 2
1. BACKGROUND
1.1. What is Pringles?
Pringles is a brand of "potato chips," therefore positioned in the snack sector.
It constitutes a brand under which a single product is marketed worldwide identified and
identifiable due to the peculiar sales format, a cylindrical container in which a
average of 95 units of the product, which take the shape of a wedge, resembling the one itself that
they take the potatoes when frying.
This appetizer, made from dehydrated potato, wheat starch, and a mixture of flours.
(potatoes, corn, and rice) and vegetable oils, available in four formats of 137 g (large), 67 g
(medium), 40 g (small) and 19 g (snack stacks), offering a total of 11 flavors, within
which highlight the original flavor (red can) and the sour cream and onions flavor (green can).
We can find the following flavors:
Hot & Spicy
Ham
Cheese & onion
Emmental Cheese
Salt & Vinegar
Paprika
Saucy BBQ
Texas BBQ
Tortilla Nacho Cheese
Original Tortilla
Spicy Chilli Tortilla
Both the design of the product itself and its packaging represent a clever formula to combine:
cost optimization for the manufacturer, brand identification, and improvement of the experience
for the consumer. Content and container fit and adapt, resulting in a packaging of
reduced dimensions, distinctive format, ease of transport and storage, and comfort
in its consumption, making 'Pringles' a product known internationally.
1.2. History
According to the P&G patent registered in 1970, Alexander Liepa is credited as the creator of the
Define Pringles as "a small snack and a process by which it is prepared."
dough, made from dehydrated potatoes and water, then fried in vegetable oil." Gene Wolfe
he was in charge of designing the machinery for its production.
There are various theories about the origin of the name 'Pringles'. One refers to Mark Pringle, who in
In 1937, he patented 'Method and equipment for processing potatoes'. His work was cited by P&G.
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when he registered his own patent to improve the flavor of dehydrated processed potatoes.
The other legend is based on the name of Pringle Drive (Finneytown, Ohio), where they lived.
two of the advertising employees of the company. For its commercial launch, a
pet with a characteristic mustache, "Julius Pringles", designed by Louis R. Dixon, which today in
The day continues to be part of the logo. In 2012, P&G sold the Pringles brand to Kellogg Company.
for 2.695 million dollars.
Regarding the packaging, the success of Pringles is largely due to this, invented by Fred Baur.
It consists of a vertical cardboard cylinder that is lined on the inside with aluminum foil.
The plastic lid on top and the cover allow that once opened, the
product does not lose its freshness. The potatoes have a uniform shape and size, so
They can be stacked, making use of all available space, preventing them from breaking.
1.3. Promotional milestones
Pringles is one of the brands that has done the most promotions throughout its history. Since
its beginnings have played a lot with one of its main identity signs, the packaging of the
potatoes, making this a support that serves for something more than just protecting the product.
For example, one of the most famous and remembered actions of Pringles is the karaoke kit, in the
that turn the boat into a support for listening to music, where it includes both the microphone
like the speakers.
As we have already mentioned, it is a snack product closely linked to the world of leisure, so
it also carved its niche in the sports sector, releasing limited editions in which
you could consume potatoes in a different way while watching your football team
preferred. In this sense, in 2016, coinciding with the Champions final, they released a
a kind of bowl to place your fries while you enjoyed your team's final.
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Continuing with the world of sports, in 2014 the promotion 'Pringoals' took place in which
buying two cans of potatoes and entering their codes, you could get one on the website.
free Umbro brand soccer jersey.
In that same line, we have another promotion that, under the slogan "Not only do you eat them... you
"You prepare for the match with them," you can get a soccer ball with the logo of the
mark.
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On the other hand, due to the Christmas festivities, Pringles has also launched some promotions.
incentivizing purchases during these dates. Thus, the action 'Happy Pringles' of 2012 consisted of
register on their Facebook page to be able to participate in their weekly draws and have the chance to win
to win various gifts.
One of the latest promotional moves by Pringles has been to try to enter the
market of cinemas giving away a movie to watch online with the purchase of two cans. Also
There is another promotion currently active in which they are raffling off trips.
Judging the current situation of Pringles and its promotional past, we can see that it is a brand
that always has active promotions to encourage its consumption and add some dynamism to the
brand. In addition to that, it is a brand that usually offers promotions like 3 for 2 or second
discounted units, since it is a product that can be stored because it is non-perishable,
turns into account.
The promotions conducted with Pringles have always been based on the execution of
supplements to make the most of supackaging design, like the resonated promotion in which
they would give you a wireless speaker that would attach to the mouth of the can, or a microphone of
karaoke that was placed in the same way. It has also been very related to football,
giving away goals with the purchase of 3 cans of Pringles.
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2. SITUATION ANALYSIS
2.1. Microenvironment
Pringles products belong to the snack or appetizer sector.
specifically to the category of potato chips, for emulating their shape and being made from
potatoes. It is a very established sector in Spanish territory particularly, due to
to find the products that constitute it integrated within the popular culture of our
country, despite the long history of trials and accusations against it for promoting
unhealthy lifestyle habits, as well as the consumption of harmful products for health.
This reason justifies the existence of the Association of Snack Manufacturers (AFAP),
a non-profit organization that not only represents the interests of companies
snack manufacturers, but also promotes the improvement of the sector for the benefit of the
manufacturers, as well as the manufacturing under quality standards. Although Pringles does not integrate the
registered association, the manufacturers who do so represent 60% of the Spanish sector of
appetizers, so the recommendations or measures adopted by the AFAP, inevitably
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will affect the performance of the brand subject of this work, therefore it must be taken into account
consideration.
The study conducted in 2016 by InfoScanCensus reflects how the snack products sector...
it ranks as the third largest category in the market compared to other categories of
food available in hypermarkets and supermarkets, worth 1.2 billion
euros billed in 2015. This data confirms the good results provided by the levers.
of boosting the sector: innovation and a high penetration at the point of sale, in pursuit of
offer a snack tailored to the needs of each consumer.
Regarding the purchase frequency of the category in places such as hypermarkets and
supermarkets, it is high, with one or more times per week in 32% of the occasions; two times a
month at 26% and once a month at 23%. This data undoubtedly supports the role of the appetizer product.
among the Spanish consumer, which is integrated as a product of a social nature, of consumption
shared, with a consumption frequency of around twice a week, being that
intake between 30 g and 50 g by more than 75% of the population.
If we refer to the distribution in terms of sales, the current snack market or
appetizers is characterized by its high competition, being quite saturated by the immense
variety of existing products. At the sector level, the distribution by product family would be the
next: nuts (42%), potato chips (36%) and other snacks (22%). Due to the
the nature of the product marketed by Pringles should be classified in the category of
remaining appetizers, but their particular shape and texture make their inclusion not feasible.
of the same, but in the analogous to French fries.
A category that, according to data provided by Nielsen, holds 60.4% of the market share.
As previously pointed out, the saturation of the category goes through countless
formats and typologies, from bagged or packaged, depending on the continent, to flat,
wavy, light, artisanal, gluten-free... depending on the content, with flat potato chips being the ones that
they occupy the first position in terms of value, and the light ones in the last place.
According to IRI (2014), potato chips were the only segment that managed to increase its
results compared to the previous year, and within that segment, were the tube potatoes along
with the wavy ones that managed to increase their figures.
Having placed the brand within the category of potato chips and knowing the main
the delimitative figures of it, corresponds to introduce its main competitors.It is a
very strong competition, since we have brands and distributor brands, making this
a superpopulated sector with a lot of competition. It could be divided into two sectors, on one hand
the direct competition and on the other hand the indirect one.
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Direct competition. By this, we refer to the major brands that market what would be the
same type of product, potato chips. Here we find that in Spain the two companies
The fundamentals are Lay’s and Ruffles.
Lay’s. This brand was founded in the United States in 1935. They market
standard format potatoes packaged in a bag, so they are not distinguishable
in this with the rest of the brands. A large part of its success is due to the great amount of
of the flavors they distribute.
Ruffles. This is a brand of ridged potato chips that is also marketed.
in the typical snack bag packaging. This wavy feature is the
what differentiates them from other brands and what gives them their name, making a
analogy with the word ruffle, which refers to the folds of clothing.
It belongs, just like Lay's, to the Frito Lay group, which it is part of.
some of the most well-known brands in this sector. Ruffles also has
with a great variety of flavors and is one of the best-selling brands.
As we have been able to verify, both brands, like many others that could also
considered competition of Pringles, belong to the conglomerate of companies of the Frito group
Lay, which is part of the PepsiCo group. Meanwhile, the Pringles brand was acquired by the
multinational P&G, to later be sold to the Kellogg’s group.
The first group, Frito Lay, is more dedicated to the salty snacks sector, while the
the general activity of Kellogg's is the sale of various cereal brands. In this way,
we found that among all the brands supported by Frito Lay, there is little competition since
they respond to some common interests and seek to have a harmonious coexistence responding
each brand to the different tastes of the consumer (classic chips, wave chips, nachos, etc.).
Really, taking this into account, there would be little room in the market for a brand like
Pringles, which also belongs to a company that does not have much experience in this.
sector.
However, we find in Pringles a brand distinct especially from any other brand of
potatoes and with some differences that are already rooted in the consumer's mind like
distinctive elements and if they were copied it would be considered plagiarism. To begin with, they are the only ones
potatoes that have a packaging with characteristics similar to that of Pringles, in a tube format and made of
cardboard, easy to store and convenient to use.
On the other hand, they are not ordinary fries but rather a recreation of fries.
fries and this makes them taste completely different. At the bottom it is shown in
the first image the brands belonging to Kellogg's and, in the next image, the brands
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belonging to Frito Lay. The three brands have a similar price, with the price of
Pringles, however, are not really perceived as expensive by the public due to the quantity and quality.
of the product. While to be cheaper, often other brands have
considered "a scam" as it is an important part of the content of "air" bags,
especially in the Lay's brand.
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Indirect competition. All brands that have not yet been considered indirect competition can be taken into account.
being made of potatoes they serve the same purpose as a savory snack. Some examples can be seen in
the previous image, like Doritos or Cheetos.
Both types are strong competition for Pringles, as most of the time, when they
make the purchase of this type of products; a specific brand is not sought. However, they have
with the great advantage of being a brand that stands out from the others both in format and in
content and there are not too many imitations or products that are truly substitutes.
It is also very important to highlight the role that private label brands play in this.
market, since the vast majority of points of sale have their own snacks that are sold.
at a lower price and this factor is fundamental when choosing a product.
2.2. Macroenvironment
Demographic environment: based on the demographic data of Spain in 2017, we observe that:
Spain has 46,549,045 inhabitants, and its population pyramid is clearly regressive.
Following the data from the last year, the number of people over 65 years old is so high that
turns Spain into a country characterized by a rather aging population, the data in
As for mortality and birth rates, they are not helpful either, as the mortality rate is very low thanks to
the advances in medicine, and the birth rate is at 8.8% of the total.
The demographic environment does not greatly affect the sales of potato chips, but it does impact those of this brand.
because it is a brand mostly purchased by young people. Spain is a country with quite a
leisure and bar tradition, therefore, the consumption of fried potatoes is not directly
related to age, as all segments of the population consume it.
Economic environment: despite Spain being in fifth position by volume
European economy at the thirteenth position globally, the crisis ongoing since the
The year 2008 has caused Spanish families to start adopting new shopping habits that
include putting major brands in the background, allowing for an increase in consumption
of private labels. Based on this fact, it is quite logical that much lesser brands
well-known brands want to plagiarize such a successful product.
Knowing that what made these potatoes unique was the original packaging and the particular shape of the
potatoes, it is quite simple to make a replica and sell it at a much lower price than that of
Pringles. For all this, the economic environment is probably the biggest brake on marketing.
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Pringles in Spain. Aside from the fact that the crisis reduced the purchase volume, currently the
The Spanish economy is in recovery.
Sociocultural environment: Currently, society in general is leaning towards styles of
healthier lives, and there is a greater concern for the composition of food and
foods they buy, especially the pre-cooked ones. Despite this new trend, the sector of
snacks (including potato chips) have not been as affected as they could have been.
to be, since if we compare the sales of the last year with those of other years, the figures do not vary
a lot.
Environmental environment: Currently, society is more informed than ever and aware.
about the impact that the products they buy have on the environment. However, still
Being aware that we must protect the environment at all costs, there is a certain lack of
initiative by consumers to know the origin of the products that
they buy or if their production affects the environment or not.
On the other hand, from the companies' perspective, it must be said that they are increasingly
responsible for the impacts that their activities generate on the environment. They understand that
being socially responsible can help them achieve a key differentiating element or
an added value compared to the competition, as currently, the public is increasingly
it takes into account the good practices of companies when acquiring their products or not, so
companies today try to meet social interest needs by even collaborating with
others for the benefit of society.
Technological environment: with rapid technological advancements, competitiveness has increased.
exponentially in all sectors, including snacks. This is why it is necessary to
betting on innovation and development to avoid falling behind, and maintaining a position
strategic within the sector.
Political and legal environment: the entire company must comply with the legislation of the country where it wants to start.
any commercial activity. Pringles, belonging to the food sector, must have very
consider the Technical-Sanitary Regulations in Spain for marketing and
preparation of French fries. In order to comply with the previous Royal Decree, you must manage aspects
such as the transportation, production, storage, and marketing of its products as
a group always adhering to what is established by law.
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2.3. SWOT Analysis
STRENGTHS OPPORTUNITIES
Differentiating element in the design, both of the Spain is a country where there are very
product as of the packaging. considered the appetizers.
Variety of flavors in the market. In Spain, this type of product is perceived and
Market settlement. Mature product. it is related to leisure, with moments
Great notoriety. Everyone knows the pleasant, fun, and positive.
marked by the packaging and the peculiar shape that The snack market is growing. And the moment
he has the potato. of consumption of this type of products is being
Great availability: it can be found in expanding to other hours/moments as well.
many points of sale. Technological changes in the market.
The brand extension would be beneficial in the case of
launch of new products.
Great possibilities to carry out
advertising actions by the element
differentiator of the packaging it has
the brand.
Development of social networks as a means
to carry out advertising actions or
promotional.
WEAKNESSES THREATS
Product perceived by the public like High competition and market saturation:
unhealthy food. Lays and Ruffles more directly.
They contain ingredients potentially Trend towards the healthy world: Awareness
carcinogenic (palm oil). by the people with a lifestyle
They are more expensive than the competition. of healthy living, which harms the type of
They are not fried potatoes as such, but rather they are a product that is Pringles.
potato starch conglomerate. Healthier substitute products: such as
for example, dried fruits or snacks based on
peas or spelt.
Strict legal regulation of the sector, of which
derives from the prohibition on the use of oil of
palm, elimination that could modify the
product features.
3. OBJECTIVES
As has been introduced up to this point, the snack market and specifically that of the
potato chips, it is an absolutely saturated category dominated by a wide variety of
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different brands and products, which come to meet a generic need such as consumption
social and taste enjoyment, as well as specific needs depending on each consumer.
In the face of this situation, and considering the prevailing trends in our society
as far as brand communication is concerned, it seems evident that the ultimate goal is to maintain or
improve sales, let others join in.
Pringles should no longer have improving its market share as its ultimate goal, but it must make it a priority.
consumption of your product an experience such that it allows for the much-desired differentiation of the
competition, facing each of its audiences. A differentiation that, to this day, cannot be
reside solely in the physical characteristics of the product, but also includes attributes
emotional aspects linked to the mentioned experience and intangible values, which not only contribute to the
it marks an addition, a competitive advantage, but also builds brand and with it relationships
durable.
In this regard, the promotional plan subject to this work presents the following objectives:
Stimulate product demand at all levels of sales (wholesalers, retailers and
final consumer), increasing by up to 2-3% by the end of the plan.
established.
Improve the consumption experience by making the purchasing process at the point of sale and
the consumption of the product provides an added value that strengthens the relationship with the consumer
final.
Position oneself as a benchmark in the priority scale of intermediaries
(wholesalers/retailers), placing Pringles among their top 10 preferred options.
Improve the presence at the point of sale, specifically in certain channels selected by
its notoriety (Carrefour, Mercadona, and Hipercor), doubling the available space.
Increase the involvement of the sales network, which should translate into an increase
percentage of 3-4% of sales in this specific area.
Gaining notoriety and exposure, increasing the importance and visibility of the brand against
wholesalers, retailers, and consumers, in such a way that it positions in one of the main
successful performance rankings, for the year following the completion of the plan.
4. STRATEGIES
In order to achieve the objectives mentioned above, this promotional plan is
It is based on different strategic lines, grouped according to the target audience to which they are aimed.
directed.
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Thus, in order to stimulate demand as well as improve the consumer experience, it is necessary
not only to ensure the presence of the product in different types of establishments
commercial, but to provide incentives both economic and in kind, that are perceived
for the consumer as rewards for their loyalty and encourage frequent consumption, while
they provide a differentiating weight motivation to influence the purchasing decision of
consumer, in comparison to competing brands, perceptually compensating for the difference
of price.
The necessary presence at points of sale must be optimal, which implies the presentation in
the linear 4 and 5 frontals, due to the product's own packaging dimensions
reduced. In this sense, a packaging that allows optimizing costs in storage and distribution,
adding a distinctive visual element, reduces visibility at the point of sale, where the bags are
All colors catch attention. That is why it is necessary to have enough visibility.
to have considerable space on the shelves, which implies directing certain actions towards the
own commercial establishments. These actions should not only consist of discounts on
volume of billing and premiums, but in gifts and promotions made exclusively for certain
selected hypermarkets of special interest to the brand, as well as actions in different
equally selected points of sale.
The orientation of the aforementioned promotional strategies towards retailers and channels of
distribution will not only help improve visibility at the point of sale, but also to a
priority consideration over competing brands in relation to these subjects. It is about
a set of strategies that will allow those involved to increase their margins of
benefit, while these multiply due to the increase in sales resulting from the
different actions taken at the point of sale, which will generate higher traffic
consumer. An increase in benefits that will positively impact the
manufacturer, and more importantly, it will substantially improve the relationship with intermediaries
at this indicated point.
Likewise, to achieve better consideration as well as an increase in sales against
wholesalers, not only will a volume billing discount policy be implemented,
but a loyalty plan consisting of a points system will be developed,
that will grant access to an enticing prize, acting as an incentive. The reduction in the
selling price, which will allow wholesalers to purchase a larger quantity of product at a price
lower than originally set, will not only allow them to obtain a greater profit margin, but
which will positively impact the intermediary's priority scale, which will also have the
option to receive a significant incentive as a reward for your loyalty.
In addition, the sales force must be considered, as it is a key link in the network.
distribution. Its implication in the sales process will contribute to the increase in sales, likewise
the way that the professional and close treatment that these figures offer in their commercial tasks for
with the intermediaries, it will positively impact the brand-distributor relationship. That is why
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that to ensure this involvement, sellers should not only be incentivized with bonuses,
variable commissions based on sales volume, but they must be kept motivated, goal
achievable through a loyalty program aimed at rewarding sellers based on
of the fulfillment of different objectives.
The different strategies indicated up to this point will act as a particular stimulus in response to
each of the target audiences, but in general terms, will contribute to improving the
notoriety and brand exposure, gaining this relevance, prestige, and visibility, since in the end and
in the end, the special dedication to each of the links in the chain will result in
summation of a positive predisposition towards it, being palpable at each subsequent level by
accumulation. If the relationship with one of the intermediaries weakens, it will create a bias that
it will affect the flow of notoriety, and consequently, the relational effort made will not be able to be
perceived at the following levels, losing the investment made in this regard. It is here
where lies the foundation of the present plan, which must be global and with specifications for each of
the brand's audiences.
5. ACTION PLAN
Consumers
Consumers are undoubtedly one of the main and most important audiences in any
plan, both for marketing and advertising in general as well as promotional in the case at hand. This
it is because, in most cases, they assume the end buyer of any product that
goes to the market.
Therefore, the objectives that lead us to approach them in a promotional plan are multiple,
but among others, how should we highlight: product testing, increasing the frequency or
purchase amount, maintain customer loyalty, etc.
To achieve those objectives, there are also many tools that we can use.
But specifically, in our promotional marketing plan for Pringles, we are going to focus
and create in the following:
Price reduction:
We will carry out a promotional immediate discount action. This means that our
The consumer will benefit, during the time that the promotion lasts, from a price reduction.
habitual of the product at the time of its purchase.
This action consists of a joint sale, that is, we are going to carry out a 3x2 offer.
It will consist of two containers of the most consumed Pringles flavors, such as the
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Original and Sour Cream & Onion; and for a third container of the flavors that are not so
demanded by consumers, such as Paprika, Hot & Spicy, Ham, etc.
This action would have two objectives, on one hand, to encourage the tasting of new flavors, since there are
many people are reluctant to spend such an amount of money (compared to the price
from other brands) into something that may not be liked, and on the other hand, the aim is to increase the
sales.
This promotion would be launched in the months of July and August on one side and December on the other side. To
consider that Pringles is a seasonal product, the chosen months are not a coincidence,
but correspond to the summer and Christmas periods, times when their consumption
increases as a consequence of excursions, picnics, snacks on terraces and beaches (summer);
Christmas dinners and meals, etc.
Species offers:
The first action will consist of a Bonus-Pack, that is, an indirect discount offer.
immediate instance in which the consumer receives a greater amount of product for the same price. In
this case will be 20% more product for each unit purchased. This promotion will
It will take place during the months of November and March, as both are bridge months to two.
times of the year when we consider that Pringles sales increase. Thus, November
introduces Christmas and March that introduces Holy Week and spring with the arrival of
good weather.
The second action we will carry out will be a contest through which the
consumers who participate will have to demonstrate their skills regarding the game that
we propose.
This will consist of making the famous wheel or ring with Pringles. To participate in the contest
they will have to be recorded doing the wheel from start to finish, without any type of editing or cuts
video. They will also have to upload it to Instagram or Twitter and mention the brand in order to qualify.
for the prize.
The gift will be nothing more and nothing less than a gift voucher redeemable for products of the brand.
The contest will take place in April since the consumption of the product at this time is already
increasing due to the good weather. During the 1st week, it will be communicated what it consists of.
contest, the rules, the prize, dates, etc., during the 2nd and 3rd weeks the participants will send
your videos, and in the 4th week of the month, a montage will be made with the funniest videos and will
will announce who the winners are.
The third action we are going to undertake is related to the launch of an edition.
limited product. During the month of May, with the aim of further stimulating demand for the
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At the beginning of the summer season, we will launch a edition of Pringles whose packaging is
filling with potatoes of different flavors. Thus, the format will be designed, both inside and
on the outside, in such a way that it will indicate when to switch from one flavor to another.
Because we are aware that many of Pringles' followers find it very
it's complicated to choose between one and the other when buying them, we want to thank you with this
format on brand loyalty, thus facilitating their decision on which flavor to buy.
We will continue with a special promotion through cross or joint actions.
(cross-promotion). Those in which two brands join forces to create a promotion. In this case
Pringles and Warner Park Madrid.
Since the consumption of this product is closely related to moments of fun with friends,
excursions, games, etc. we believe that this joint promotion is perfect.
It will consist of a 2-for-1 or in other words, a 50% discount at Parque Warner Madrid for the
purchase of 3 packs of Pringles. To redeem this offer, it will be necessary to present at the
Park lockers, the coupons that will be attached to the potato packaging.
The promotion period will start on June 1 and end on July 1. Both dates have been
selected due to the rise in temperatures and vacation periods in the
schools, institutes, universities, and jobs, which leads to a more predisposed audience to attend
these types of activities.
The last promotion aimed at the consumer that we will carry out will be a prize offer.
We will offer a gift to the consumer for making the purchase of the product. But in this case
the prize is part of its packaging, turning a part of it into a container
reusable, as we will create beautiful designs on the Pringles lids with the aim of making them
turn into collectibles. In this way, our customers will be able to build from mosaics or murals.
even use them as coasters.
The months in which this promotion will take place are September and October, with the aim of
extend the peak consumption period of potatoes, that is, the summer season.
5.2. Retailers - Distribution Channel
In order to achieve the proposed objectives, following the proposed strategic lines, the present
The promotional plan includes the following actions aimed at the retailer, those that connect.
directly with the end consumer and therefore, become the final link in the
distribution chain. Here we include both hypermarkets and supermarkets, as well as stores.
locales, bars or sociocultural venues, specified in each case.
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Actions/material PLV:
Promotions at the point of sale will include the distribution of merchandising for its
exhibition in commercial establishments, as well as certain actions developed for
some of them in particular. The merchandising will be based on a set of different
corporate materials, from labels, stickers, banners, posters or designed vinyls
specifically for its display in hypermarkets, supermarkets, and local stores. Its
distribution will take place throughout the year, offering an amount higher than those
retailers with a higher volume of sales.
Within the merchandising developed for the Christmas season, it will be proceeded to
development of a special display that will take the form of a Christmas ball and that, with a diameter
one meter, it can be hung from the ceiling. This display will serve as a showcase that can hold
inside packaging of the product, providing a dynamic element to the point of sale.
it is about a specific presenter for the sale of the brand's products, in its creativity it
they will include the distinctive elements of it. Due to its layout, to avoid fall risks.
Due to the excess weight, the construction material will be PVC, and the installation and removal of it
will be the responsibility of the brand, during the months of December and January respectively. This
the concrete merchandising element will only be provided to certain channels of
selected distribution, such as Carrefour, Hipercor, and Ahorra Más.
In addition to the distribution of materials, within the promotions carried out at the point of sale
PLV within the indicated terms, a tasting will be carried out as an action.
Promotional. Such tasting will consist of increasing the consumption of the product, offering uses
alternatives that, although already being put into practice by certain consumers, are not widely used.
frequent. We are talking about cooking recipes in which the brand product takes on a role
protagonist, recipes that will be extracted from the web and that the consumers themselves have
developed. Such tastings will be offered from a stand that will be set up in up to
20 establishments for each distribution brand nationwide, these being Carrefour and
Hipercor, with the channels needing to select the 20 establishments where it will be deployed.
action that will take place on the last two Saturdays of November and the first two of December.
Along with the tasting of dishes prepared by chefs hired by Pringles, it will be
delivered an informational flyer with the different recipes, as well as a discount of 0.50 cents per
the purchase of a can of Pringles products, promoting not only the purchase but also the use
alternative.
Discounts:
The second of the promotional actions aimed at large retailers, such
like hypermarkets or nationwide supermarkets, it will be the proportion of a discount
for billing. The choice of this discount lies in the ease of accounting for sales and the
promotional investment made in accordance with this incentive, in this way, for every 1000 units
Promotional plan - Group 9 19
for Pringles products sold, the retailer will receive a 5% refund of the amount paid
for the same, which can be deducted from the invoice on the next order, according to
preferences of each client. Knowing the sales rhythm of each channel, it will be possible to make a
estimate of the amount to be reimbursed within one year to each of them, providing
a significant discount, while ensuring a standardized number of sales. It is
The promotion will only be applied to Carrefour hypermarkets, Hipercor, Mercadona,
Alcampo, El Corte Inglés Supermarkets, Ahorra Más, and Lidl.
Gifts / Incentives:
To ensure good visibility on the shelf, it is not enough to just carry out certain
actions or discounts to hypermarkets, but rather the provision of gifts becomes necessary,
as an incentive in kind, they act as payment for a larger amount of space in the
shelves. In this sense, Pringles will provide certain distribution channels two
types of gifts: Pringles product and giveaways.
The gift with the largest quantity of products will be made in the months of November and June, with the
Objective of providing the channels with a sufficient quantity of product to meet the demand.
growing demand during those dates, thus reducing the purchase of an amount that exceeds the
demand, as receiving a certain volume of free units, the purchase will be adjusted to those that are
Necessary estimates. For the purpose of this gift, 2,000 units of the product will be given as a present.
Pringles at the hypermarkets Carrefour, Mercadona, Alcampo, Hipercor, Ahorra Más, Lidl (2000
units / brand distribution.
Similarly, as an exclusive promotion for Carrefour and Hipercor hypermarkets, in pursuit of
nurture a fruitful relationship that ultimately impacts the positioning that the
brand has on the priority scale of the mentioned channels, an offer will be made to them.
a special offer that will consist of the gift of 2 units of Pringles products for every 10 purchased.
It is about a promotion that can be accumulated with the ones previously mentioned.
In line with the promotional gifts, as an incentive, two gifts will be designed.
delivered to selected distributors, so that they can use them as needed,
upon recommendation of being offered as an incentive to the consumer. Such incentives will consist of:
Finally, it should be considered as part of the distribution network to bars and cafes.
to whom furniture and supplies will be provided for their commercial activity as a way to optimize
the relationship between the parties, depending on whether the billing volume is deemed sufficient or as
way to increase it, achieving long-term loyalty at the same time. To this
Regarding, tables, chairs, napkin holders, displays, and umbrellas will be offered designed with the
identifying symbols of the brand.
Promotional plan - Group 9 20
A similar distribution activity is carried out by sociocultural venues such as theaters,
Sports palaces, bullrings, sports complexes, soccer fields... to those who
will provide furniture adapted to its commercial performance, such as carpets, display cases,
exhibitors...
5.3. Wholesalers
Wholesalers are another link in the distribution chain. Specifically, they are
an intermediary between manufacturers and retailers or merchants and as a result, never
they are in contact with the end consumer.
For the case at hand, we will carry out a promotion based on a program of
loyalty, rewarding in this way the trust that wholesalers place in the manufacturer.
This action consists of a points card that is filled in according to the volume of product.
that is purchased.
The card will be divided into three parts, referring to the three different prizes or gifts.
that can be achieved according to said purchase volume. For a quantity of 180,000 products, the
The gift will be a trip to Riviera Maya for a week with all expenses paid; for 120,000
units, you will have the chance to win a trip to Milan for a week with half board included; and for
Finally, for 90,000 units, the gift will consist of a stay with breakfast at a destination.
national for seven days.
The second promotion that will take place in this regard will be a discount based on invoicing.
Thus, we will issue a price reduction of 5% for every 10,000 units purchased that the
the wholesaler acquires from the manufacturer. In this way, the wholesaler will feel rewarded and will continue the
business relationship with your manufacturer.
5.4. Sales Force
The sales force is an area that is in direct contact with customers and plays a very important role.
important when it comes to achieving business results.
The first of the promotions that we will implement for these will be the granting of a
variable salary apart from the fixed salary that each salesperson receives. Since the work performed by the sales force
sales are very tough, exhausting, and in many cases frustrating, they need incentives that
motivate to continue their activity. Therefore, we will establish a variable of 2% on the volume.
of sales.
We have to keep in mind that this method of compensation is quite standardized and that
many sellers consider it as part of their salary, but we need to ensure that
Promotional plan – Group 9 21
this should not be the case, since at the moment it is decided to discontinue this promotion, we can have
problems and complaints.
But we will not limit our plan here, but we will also provide some bonuses in the form of
extra payments. Two will be given per year, one in summer and another at Christmas. This will symbolize a
link to the rest of the employees of the company who are not part of the sales force,
since they also tend to receive these payments and in this way, the sellers will feel more
involved in the organization. This is something that usually does not happen because they work on the street and do not
in offices or in the company of other colleagues as happens in other departments.
To continue enhancing their motivation and appreciating their effort, a program will be developed.
loyalty program in which, through a "points card" game, one can opt for lunches, dinners,
weekends and other types of activities as long as a certain number of sales is achieved
established by said promotion.
Finally, with the aim of enabling sellers to have more knowledge and be able to exercise their
work more professionally, assistance will be given to certain fairs or conventions
about sales techniques, persuasion, etc. In this way, the salespeople will feel that we
we care about them and their professional development. But we also believe that it is important
very interesting, the attendance at conferences on health and sanitation that focus on products
food, and more specifically to the category of snacks or fast food in which we
we find ourselves immersed. For example, because we are currently under the umbrella of the crisis
from palm oil, one of the ingredients used to produce Pringles. For this reason,
we consider it essential to attend these types of meetings that can enhance training
our sellers, their knowledge on certain topics and their ease in trying to come out successfully
of this type of situations.
All these types of events will be accompanied by meals, dinners, and free time so that the
employees have time to spend with the rest of their colleagues or enjoy them.
Promotional plan - Group 9 22
6. CALENDAR
Promotional plan - Group 9 23
Promotional plan - Group 9 24
Promotional plan–Group 9 25
Promotional plan - Group 9 26
Promotional plan - Group 9 27
Promotional plan - Group 9 28
LEGEND
Consumers 1 20% free on the containers.
Consumers 2 Raffle of €100 in Pringles chips.
Consumers 3 Limited edition: mix of Pringles in the same container.
Consumers 4 2x1 at Parque Warner.
Consumers 5 3x2
Consumers 6 Collectible tapas.
Distributors A PLV Action: Display
Distributors B Billing discount: 5% for every 1000 units
sold.
Distributors C Arrangement of furniture and tools for advertising in the
establishments.
Distributors D Loyalty program.
Distributors E Free units (max 2000 units/distributor).
Distributors F Gift: surfboard. (1000 units/distributor).
Distributors G Gift: Twister game. (1000 units/distributor).
Distributors H Pringles tasting + €0.50 discount on purchases
+ recipes.
Sales force Fixed variable salary, extra payments (July and December), program of
loyalty and attendance at fairs or conventions.
7. CONTROL OF RESULTS
In order to achieve the proposed objectives, this promotional plan integrates different
cross strategies, which materialize in specific actions by the brand's audiences. That is why
it is necessary to establish monitoring controls for each specific action, so that,
achieving those concrete objectives, the strategy will be considered successful. In summary, a percentage
effectiveness in many of them will entail achieving specific objectives for
whose scope were raised.
Promotional plan - Group 9 29
Likewise, the control of each specific action separately allows not only to measure the effectiveness
concrete one by one, but also correct possible errors or deviations for future cases.
Regarding the actions dedicated to the end consumer:
Price reduction: Consistent as mentioned earlier in a 3x2 offer in which
two of the products will be the most iconic flavors of Pringles (red box and green box) and
a third party that would be of any other flavor promoting its trial. This would have two
objectives, on one hand the increase in sales and on the other the stimulation of demand for
different flavors of the brand. To control the effects of the promotion, on one hand, it
it will measure the number of times it has been purchased to see if it is really produced a
increase in sales and, on the other hand, we will also measure the level of increase in purchases
of the different flavors separately. In this way we will know objectively if we have
achieved the sales targets and also if we have managed to get the consumer who tries
the new product is purchased later.
Offers in kind:
Bonus Pack. In this promotion, the packaging format will be changed to include 20% more.
of the product to offer it at the same price. The aim of this action is directly
so that the number of sales is positively affected, which will result in a
control over the number of units sold with these characteristics and there will be a
comparison of benefits and costs to verify if the promotion is profitable for the
brand.
Contest. This action consists of a raffle for a voucher to obtain products of the brand.
in which consumers can actively participate by making a video in the
that they appear building the Pringles wheel, which they will have to upload to Instagram or
Twitter mentioning the brand. The intention of this action is to promote the name of
brand associating it with fun. We will check the effectiveness of the campaign of two
ways. First, monitoring of the activity generated on the networks will be carried out.
socials from the moment the information about the contest is given (comments,
posts, likes, follows to the brand profile...). Apart from this, we will analyze whether to remember the
branding on social media serves as a campaign to promote sales and this
we will measure sales results during the month following the action, in
comparison with the same month in previous years. On the other hand, to measure the impact
that could affect the company's brand image we will conduct some focus groups
that allow you to see it.
Launch of a limited edition. With new format and content, we will launch a jar.
in which there will be different flavors, indicating on the packaging when one starts and another.
The objective is the same as before, to try different flavors of the brand. But it also
it intends to be considered a 'gift' that we give to the consumer, so our
Promotional plan - Group 9 30
The intention would also be to build loyalty and to have an image that Pringles is a brand.
fresh and innovative. Ultimately, it will be about achieving reasonable sales that
help recover the capital invested in this stock. We will measure if the
first objective comparing with the number of sales of the different flavors seeing if
increases. To verify the public's perception of the brand and the concept of
In this promotion, focus groups will be conducted. Finally, it will be checked if the number of sales...
surpass the costs to see if it has been profitable, and if it were significantly higher, one could consider
produce this new product permanently.
Crosspromotion. This promotion will be made together with Parque Warner Madrid and will consist of
apply a 50% discount on your ticket which can be achieved with the purchase of three
Pringles products. The main objective is to associate the brand with moments of
leisure and fun. To track effectiveness, a count of the number will be made.
the number of times the promotion has been used and, on the other hand, to each person who uses it
a small questionnaire to fill out before entering the Park.
way, see how they perceive the brand.
Prize offer. This action consists of offering in the product's own packaging a
gift, in this case the container caps will become collectible pieces that
they can be used as coasters. The intention is for sales to increase by offering
one more reason to buy Pringles. Its effectiveness will be proven with the number of
units sold of these characteristics, compared to the average volume of
sales.
About the measurement of actions dedicated to retailers:
Actions/PLV Material:
Material. To verify if the material placed in the establishments is reflected in the
sales, we will measure if they increase in those places where we have delivered it,
ensuring beforehand that they have indeed been exposed. In addition, it will be carried out
a tracking of its use so that it is used under the conditions established by the
brand. Our objective with retailers is to promote a lasting relationship and
collaboration, so the way to measure whether this is met will be to observe over the
time if the places to which these materials are provided give the brand a treatment
priority.
Special display. During the Christmas season, it will be delivered to selected points.
a large Christmas ball that can be hung and serves as a display for our
products. We will measure their effectiveness by checking whether these centers actually use it and if
influences the number of sales. Furthermore, through observing the reactions of the
Promotional plan - Group 9 31
clients by specialists, we will be able to know the interest that the placement generates in the public
of this type of Displays and what effects it has on them (if they like it or not, if it encourages or not to the
purchase, etc.)
Tastings. Regarding this action, we will also check the reactions live.
and we will conduct a small survey to those who decide to try by asking them if they
has liked and if they would make these recipes or others with the brand. Likewise, the measurement will be taken
redemption of the delivered discount coupon will be made and a comparison of sales will be carried out
during the days of the promotion, with average sales on a normal day during those
selected establishments.
Billing discount. This promotion will consist of a 5% refund to the surfaces.
for every 1000 units of the product they obtain. To analyze if this promotion is successful,
we will check if the number of units purchased increases percentage-wise in batches of
thousand or continue in the same way as before.
Gifts/incentives: Certain points of sale will be gifted with the delivery of more.
quantity of product (Pringles). To verify the results, a subsequent will be carried out.
count of the number of units sold to check if the extra units have been
counted as part of the normal order volume by the interested parties, if they have
it has generated a stock effect or has impacted the percentage increase in orders
realized in volume. Ultimately, what this action intends is that the
demand volume is equal to or higher, with the distributor making a promotional effort
the strategy to market those product units that have been gifted to them.
On the other hand, a gift promotion will be held for 2 units for every 10 obtained.
Carrefour and Hipercor. Gifts such as surfboards or Twister games will also be given.
These actions aim to build loyalty and establish a good relationship with retailers so that
place our product well, so its effectiveness will be evaluated by seeing it in the same places
for sale in which shelves do they place Pringles, how much space do they allocate to them in the same and the
treatment that it gives, in this sense, to the brand.
Furniture and supplies. That will be delivered to certain establishments as a reward.
for choosing our brand. As a result, it will be observed whether the objective pursued with this
type of gifts for birthdays, that is, if those establishments continue to be loyal to Pringles.
It is mainly about a maintenance promotion.
On the other hand, the promotions made to wholesalers will also be analyzed:
Loyalty program. Consisting of a points card thanks to which you can
reach different rewards based on the purchase level. The goal pursued is for wholesalers
buy larger quantities of Pringles and that, consequently, to sell them,
Promotional plan - Group 9 32
position the brand in their establishments, in a preferred place, and run promotions to their
clients so that they increase their consumption. The effectiveness of this promotion will be
through the measurement of the increase in the amount of product they demand, in
comparison with the average demand. It is also essential to check if that amount is
does it last over time or is it only temporary.
Billing discounts. With this promotion, the price will be reduced by 5% for each
10,000 units purchased. The results will be measured through the sales count by
each wholesaler, observing whether the demand trend continues in multiples of 10,000 or figures
invariables.
Finally, a follow-up will be conducted on the promotions dedicated to the sales force:
Bonuses in the form of extra payments: In-depth interviews will be conducted with a sample of
employees that are representative of the company's sales force. The goal is to know
how they feel working at Pringles and, in this way, we will be able to see the level of
satisfaction.
Loyalty program: Through a points card, gifts will be obtained.
achieve a predetermined number of sales. Its effectiveness will be measured based on enthusiasm
or the drive that employees show in wanting to achieve the highest number of sales possible
in order to be able to apply for these prizes. We must ensure that they are gifts that they
they are motivated, since if they do not put any extra effort into increasing their sales; or
we are facing an incentive that is not appealing or a loyalty program that is not very
suitable for our type of employee. On the other hand, we will also pay a lot of attention
to the use and enjoyment that each employee makes of said gifts and their points card.
Attendance at fairs and conventions: On this occasion, we will measure the effectiveness of the promotion to
through the number of attendees at conventions and fairs, comparing with the total of
gifted invitations.
On the other hand, a focus group will be held to assess the level of satisfaction of the
sellers. In this, a series of questions will be asked that can demonstrate interest.
loaned at each convention. If we see that employees do not put into practice the
knowledge acquired at this type of fairs, it would be time to reconsider another type
of promotions, since, although this represents an incentive for sellers, the goal does not
It is another to increase their knowledge to apply it later to their work, and for it to have an impact.
in greater benefits for the company.
Promotional plan - Group 9 33
Promotional Plan - Group 9 34
8. BUDGET
Annex
9. CONCLUSIONS
In Spain, the snack market is very established due to the country's popular culture, as
this sector is generally associated with positive connotations related to leisure and
enjoy.
The economic crisis of 2008 led to a change in consumer purchasing habits.
putting brands in the background and opting to consume private labels at a lower price,
an event that had an impact even for the most established brands such as
Pringles.
Currently, companies are more aware than ever of the importance of implementing good practices.
being socially responsible and controlling the impacts that its activities provoke
environment, since they understand that this can be a differentiating factor regarding the
competition, in addition to a demand from the consumer itself.
Therefore, not only have consumption habits changed, but brands, in pursuit of contributing
Value to your signatures, they have found themselves obliged to deploy new business strategies, in pursuit
to maintain its position in the market. A market that, in the case of the snack sector,
it presents a great competition and many substitute products, many of which are even more
healthy.
Indeed, the consumer's lifestyle has adopted a new trend, and that is due to the ease
access to multiple and reliable sources of information, concern for health has become
a more than considerable threat for those brands that operate in opposing territory. A
consideration that is very close to the brand subject of this work, as it moves in that
territory of harmful products, which justifies even more if possible not only their differentiation from
the competition, but rather the contribution of value to your brand, so that it does not become obsolete
for healthier options.
Additionally, it is worth noting that this brand has great possibilities for running promotions due to
the differentiating packaging it has. Due to the notoriety and trajectory it has.
account, has managed to make a place for itself in the market, perceiving a business volume more or
less regulated. Still, the recently pointed threats do not exempt any brand,
a lot of journey that this one has, unless there is something else that adds value and influences it
rational decision that involves opting for healthier or lower-priced products (brands of
distributor).
Promotional plan - Group 9 35
This is why, in order to build loyalty and establish relationships with their stakeholders that lead to
last instance to an increase in the engagement rate, the deployment of different actions
Promotional, with a certain innovative and attractive point, would represent a great contribution.
In addition to ensuring the maintenance of the market share reached up to this point.
This would imply moving away from the clichéd 3x2 or 20% additional product, which occasionally results from
usefulness, which should not be neglected, developing promotions that add value
added to the brand, as pointed out in the present work.
10. BIBLIOGRAPHY
ASAP. The sectr.Unable to access external content.
QCOM.ES. The snack market is growing above the average of
food.The snack market is growing above
from-the-media-of-the-food_30015_2858_33390_0_1_in.html
SWEET PRESS.Potato Chips, the favorites in the snack market.
Unable to access the content from the provided URL.
DATA MACRO.COM. Spain - pyramid of population.
Invalid input. Please provide text for translation.
DATA MACRO. COM. Spain - Economy y demography.
Invalid input. Please provide text for translation.
BOE.ES. Royal Decree 126/1989, of February 3, which approves the Technical Regulation
Sanitary for the production and marketing of potato chips and snack products.
I cannot access external links or translate documents from URLs.
PRINGLES.COM. Invalid input for translation. Please provide text to translate.
THE ECONOMIST. The nut and snack sector increased its sales by 4.3% in 2016, up to
2.19 billion.The provided text is a URL and does not contain translatable content.
The nut and snack sector grew by 43% in 2016 and has recorded seven years of
growth.html
Promotional plan - Group 9 36
FINANCIAL FOOD. Appetizers: the market improvement suspiciousdata.
Unable to access or translate the content from the provided URL.
INFO KIOSKS. Promotions Pringles. http://infokioscos.com.ar/15398/happy-promotion-
pringles.html
KARAOKE PRINGLES. Karaoke kite. Invalid input. Please provide a text for translation.
KELLOG COMPANY. Kellogcompany.com. Brand portfolio.
The provided text is a URL and cannot be translated.
