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 dura!les such as glassware, !ul!s, !atteries, and plastic goods such as !uckets. Fast Moving is in opposition to consumer dura!les 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?

"romotion has several possi!le o!#ectives and many pieces of marketing promotion aim to achieve several of the following o!#ectives at the same time: Inform Management may need to make their audience aware that their product e$ists, and to e$plain e$actly what it does. This is a particularly important o!#ective for new products. Persuade This is an important step, which helps in creating favora!le attitudes towards the !usiness and its !rands. Through persuasive promotion, management will seek to persuade customers and the trade that their !rand has !enefits that are superior to competitors Image creation %ometimes, promoting a !rand image is the only way to create differentiation in the mind of the consumer &e.g. lager advertising' Reassurance Much promotion &particularly advertising' is a!out reassuring customers that they have made the right choice and encouraging them to stay loyal to a !rand. There are a large and growing num!er of promotional methods that !usinesses can use. The main instruments together as part of the promotional mi$. advertising, direct response mailing, sales promotion, pu!lic relations and direct selling, are often mi$ed

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Promotional Strategies for FMCG

(n the sales profession, two effective ways to get !usiness are to go out after it, or have it come to you. The first you do !y prospecting) the second through promotional strategies. Most salespeople agree it*s much more pleasant and less time consuming when prospects come to them. The !eauty of promotional strategies is: they plant a seed in your prospect*s mind. (n effect, you*ve made a +reservation+ to !e considered for future !usiness. (f your prospect has had positive e$posure to you in advance, you will more easily esta!lish the relationship, make the appointment and complete the sale. "romotion can give you the name recognition you need.

OBJECTIVES OF THE PROMOTIONA STRATEG!

, successful promotional strategy multiplies the salesperson*s presence and increases his effectiveness. , properly e$ecuted promotional program can accomplish these o!#ectives: -. (ntroduce your product or service to new prospects .. %mooth the way for setting appointments /. 0ncourage more purchases !y current clients 1. %timulate off season purchases 2. Compete with competitor*s promotional efforts 3. 4eep present, former and future customers informed of your services

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

5. 0nlarge your market !y increasing activity in a wider geographic area.

,ll promotional efforts aim to increase sales. 6hile advertising and sales promotion do this directly) pu!licity and pu!lic relations influence sales indirectly, !y encouraging the !uyer to think highly of you, your company, and your products. Most people would rather !uy from a person or company they +like+ even if they don*t know them personally.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

A PROMOTIONA

MI" CONTAINS THE FO

O#ING

PRINCIP E FO$R E EMENTS%&

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

THESE ARE OTHER T!PES OF PROMOTIONA STRATEGIES $SED FOR FMCG PROD$CTS%&

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

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

1. ADVERTISING:
+The means of providing the most persuasive possi!le selling message to the right prospects at the lowest possi!le cost+. 4otler and ,rmstrong provide an alternative definition: +,dvertising is any paid form of non personal presentation and promotion of ideas, goods and services through mass media such as newspapers, maga7ines, television or radio !y an identified sponsor+. ,dvertising means a paid, persuasive presentation promoting you, your company, and8or your product8service. 9o matter how su!tle or o!vious your ad, the desired outcome can !e achieved only through:

-. 0ducation Making prospects aware of yourself or your product and what you can do for them .. "reference Formation Getting the prospect to like you and prefer your product to the competition

/. Generating an (nquiry ,dvertising doesn*t make a customer, you do. :ut, you must get people to tell you of their interest. The si7e and nature of your !usiness will determine which advertising means you will use. (f you*re a sales consultant, it often doesn*t pay for you to advertise on T; or in newspapers. Trade #ournals can !e a more effective medium. (n determining which sources would !est fill your needs, ask yourself some questions: -. 6hat message do ( want to convey< %hould more emphasis !e put on my product8service or me< .. 6hat is my target audience< =ow can advertising e$pand it< /. 6here will my target prospects most likely see my message< 1. =ow much can ( afford to spend on advertising this year< 2. 6hen is the !est time to advertise<

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

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

Marketers should remem!er that the role of advertising is to create demand for a product. The amount spent on advertising should !e relevant to the potential sales impact of the campaign. This, in turn will reflect the characteristics of the product !eing advertised.

Stage 2% Determine t'e 3e4 A*(ertising Messages%

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

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

There is a variety of advertising media from which to chose. , campaign may use one or more of the media alternatives. The key factors in choosing the right media include: &a' >each what proportion of the target customers will !e e$posed to the advertising< &!' Frequency how many times will the target customer !e e$posed to the advertising message<

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

&c' Media (mpact

where, if the target customer sees the message

will it

have most impact< For e$ample does an advertisement promoting holidays for elderly people have more impact on Television &if so, when and which channels'

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

The evaluation of an advertising campaign should focus on two key areas: &a' The Communication 0ffects is the intended message !eing

communicated effectively and to the intended audience< &!' The %ales 0ffects has the campaign generated the intended sales

growth. This second area is much more difficult to measure.

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

Bro+'1res or fl4ers% Many desktop pu!lishing and word processing software packages can produce highly attractive tri fold &an ?.2 inch !y -- inch sheet folded in thirds' !rochures. :rochures can contain a great deal of information if designed well, and is !ecoming a common method of advertising Dire+t mail% Mail sent directly from you to your customers can !e highly customi7ed to suit their nature and needs. @ou may want to !uild a mailing list of your current and desired customers. Collect addresses from customers !y noticing addresses on their checks, asking them to fill out information cards, etc. 4eep the list online and up to date. Mailing lists can quickly !ecome out of date. E&mail messages% These can !e wonderful means to getting the word out a!out your !usiness. Aesign your e mail software to include a +signature line+ at the end

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

of each of your e mail messages. Many e mail software packages will automatically attach this signature line to your e mail, if you prefer. Maga9ines% Maga7ines ads can get quite e$pensive. Find out if there*s a maga7ine that focuses on your particular industry. (f there is one, then the maga7ine can !e very useful !ecause it already focuses on your market and potential customers. Ne)sletters% This can !e powerful means to conveying the nature of your organi7ation and its services. Consider using a consultant for the initial design and layout. Today*s desktop pu!lishing tools can generate very interesting newsletters quite ine$pensively.

Ne)s,a,ers 7ma/or8% ,lmost everyone reads the local, ma#or newspaper&s'. @ou can get your !usiness in the newspaper !y placing ads, writing a letter to the editor or working with a reporter to get a story written a!out your !usiness. ,dvertising can get quite e$pensive. 9ewspapers are often quite useful in giving advice a!out what and how to advertise. 4now when to advertise the !uying ha!its of your customers this depends on

Ne)s,a,ers 7neig'.or'oo*8% (ronically, these are often forgotten in lieu of ma#or newspapers, yet the neigh!orhood newspapers are often closest to the interests of the organi7ation*s stakeholders. Online *is+1ssion gro1,s an* +'at gro1,s% ,s with e mail, you can gain frequent e$posure to yourself and your !usiness !y participating in online discussion groups and chat groups. 9ote, however, that many groups have strong ground rules against !latant advertising. 6hen you #oin a group, always check with the moderator to understand what is appropriate.

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Posters an* .1lletin .oar*s% "osters can !e very powerful when placed where your customers will actually notice them. :ut think of how often you*ve actually noticed posters and !ulletin !oards yourself. Ra*io anno1n+ements% , ma#or advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, for e$ample, when in their cars. ,ds are usually sold on a package !asis that considers the num!er of ads, the length of ads and when they are put on the air. . , ma#or consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio. Telemar3eting% Telemarketing uses the telephone as a direct marketing medium through which a variety of sales and market research activities can !e carried out. 6hen com!ined with information and management systems, it can !ring trained personnel into computeri7ed contact with potential customers, and maintain that contact profita!ly.

Tele(ision a*s% Many people don*t even consider television ads !ecause of the impression that the ads are very e$pensive. They are more e$pensive than most of ma#or forms of advertising. =owever, with the increasing num!er of television networks and stations, !usinesses might find good deals for placing commercials or other forms of advertisements.

#e. ,age% @ou pro!a!ly would not have seen this means of advertising on a list of advertising methods if you had read a list even seven years ago. 9ow, advertising and promotions on the 6orld 6ide 6e! are almost commonplace. :usinesses are developing 6e! pages sometimes #ust to appear up to date. Considering that the num!er of people on the we! is e$ponentially rising with time it has grown to !e a favora!le option.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

!ello) Pages% The @ellow "ages can !e very effective advertising if your ads are well placed in the directory*s categories of services, and the name of your !usiness is descriptive of your services and8or your ad stands out &for e$ample, is !olded, in a large !o$ on the page, etc.'. The phone company will offer free advice a!out placing your ad in the @ellow "ages. They usually have special packages where you get a !usiness phone line along with a certain num!er of ads.

Judging the effectiveness of advertising:

=ow can the effectiveness of an advertisement !e #udged< The answer depends on what o!#ectives or tasks were set for the advertisement. The ta!le !elow sets out some possi!le o!#ectives8tasks and how the effectiveness of the advertisement might !e measured:

Advertising objective

-How success can be measured

Stimulate an increase in sales

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

Remind customers existence of a product

of

the

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

nform customers

Test customer awareness - Number of requests for further information

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

!uild a brand image

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

brand

!uild customer relationship

purchase

$hange customer attitudes

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

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

Bne good strategy com!ines a personal letter of introduction prior to personal contact. The !enefits of personal contact are o!vious successfully. each contact has a high impact. :oth methods can !e utili7ed appropriately and

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

2. PERSONAL SELLING:
Bral communication with potential !uyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential !uyer, !ut will always ultimately end with an attempt to +close the sale+. "ersonal selling occurs where an individual salesperson sells a product, service or solution to a client. %alespeople match the !enefits of their offering to the specific needs of a client. Today, personal selling involves the development of longstanding client relationships. (n comparison to other marketing communications tools such as advertising, personal selling tends to:

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

There are e$ceptions of course, !ut most personal selling takes place in this way. "ersonal selling involves a selling process that is summari7ed in the following Five %tage "ersonal %elling "rocess. The five stages are: &' (rospecting' )' %a6ing first contact' *' The sales call' +' 7bjection handling' -' $losing the sale'

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Stage One Pros ecting:

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

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

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

To save time2 send some information before "ou visit'

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

(t is !est to !e enthusiastic a!out your product or service. (f you are not e$cited a!out it, don*t e$pect your prospect to !e e$cited. Focus on the real !enefits of the product or service to the specific needs of your client, rather than listing endless lists of features.

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

B!#ection handling is the way in which salespeople tackle o!stacles put in

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

their way !y clients. %ome o!#ections may prove too difficult to handle, and sometimes the client may #ust take a dislike to you.

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

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

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

.. SALES PRO$O!IONS:
%ales promotions differ from overall promotion in that they are onetime activities. They involve special sales, demonstrations, and other !usiness stimulators that are temporary. %ome common promotions are: demonstrations, novelties8gifts, special events, coupons, e$hi!it !ooths, incentives, cele!rity appearances, discounts, promotional offers, holiday cards, open houses, and sales. %ales promotion is one of the four aspects of promotional mi$. &The other three parts of the promotional mi$ are advertising, personal selling, and pu!licity8pu!lic relations.' %ales 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 availa!ility. 0$amples include:

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

%ales promotions can !e directed at either the customer, sales staff, or distri!ution channel mem!ers &such as retailers'. %ales promotions targeted at the consumer are called consumer sales promotions. %ales promotions targeted at retailers and wholesale are called trade sales promotions. %ome sale promotions, particularly ones with unusual methods, are considered gimmick !y many.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

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

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F#&&84+(1'$16 $14&#+ ;FSI=* A %.0-.1 9..:)&+ $4 $14&#+&' $1+. +2& ).%() 1&54-(-&# 7.# '&)$>&#/. O1842&)7 %.0-.1$16* C.0-.14 (#& -#&4&1+ (+ +2& 42&)7 52&#& +2& -#.'0%+ $4 (>($)(9)&. C2&%:.0+ '$4-&14&#4* O1 %2&%:.0+3 +2& %04+.,&# $4 6$>&1 ( %.0-.1 9(4&' .1 -#.'0%+4 -0#%2(4&'. O18)$1& %.0-.1$16* C.0-.14 (#& (>($)(9)& .1 )$1&. C.140,&#4 -#$1+ +2&, .0+ (1' +(:& +2&, +. +2& 4+.#&. M.9$)& %.0-.1$16* C.0-.14 (#& (>($)(9)& .1 ( ,.9$)& -2.1&. C.140,&#4 42.5 +2& .77&# .1 ( ,.9$)& -2.1& +. ( 4()&4-&#4.1 7.# #&'&,-+$.1. P.$1+8.784()& '$4-)(/4*

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

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

Sa/ (es:

Bffer a free amount of a product or service delivered door to door, sent in the mail, picked up in a store, attached to another product or featured ( an advertising offer. 'ou ons: Certificate entitling the !earer to a stated saving on the purchase of a specific product: mailed, enclosed in other product, attached to them, or inserted in maga7ines and newspaper ads. 'ash Refund Offer )Re+ate*: (rovide a price reduction after a purchase rather than at the retail shop@ consumer sends a specified A(roof of (urchaseB to the manufacturer who ArefundsB part of the purchase price b" mail'

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

Product 3arranties: 0$plicit or implicit promises !y sellers that the product will perform as specified or that the seller will fi$ it or refund the customerDs money during a specific period.

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

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

4. P56LI' RELA!IONS:
"u!lic relations means relating to the pu!lic in a way that wins its appreciation. (t involves goodwill and community awareness. (ts affect on sales is indirect and more difficult to analy7e. %ales do improve, however, !ecause people like to do !usiness with salespeople that take an interest in the community. (n determining your !est pu!lic relations strategies, you should consider: 6ho are your +pu!lics<+ They are groups of people who perceive you as a !usinessperson. %ome pu!lics act on their perceptions and increase your sales) others #ust appreciate you. (t is important to identify each of your pu!lics and develop strategies for improving your image with them. For e$ample, if you sell real estate, your pu!lics could !e !ankers, mortgage companies, customers, the community at large, other !rokers, property managers, etc. =ow can you reach these pu!lics< Many methods e$ist. @our choices might include: (. Contri!utions of time or money to particular groups and activities, such as sponsoring Eittle Eeague, !owling teams, sporting events, cultural activities, charities, community development programs, and others . 9. "u!lic speeches @ou can offer your services to a group who would like to hear you speak on your area of e$pertise. %. %taged events @our targeted pu!lics may sponsor picnics, anniversary parties, !all games or other events. @our presence at these occasions gives your pu!lic a chance to get to know you in a rela$ed, non !usiness

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

setting. '. Trade ,ssociations :elonging to these and special interest groups provides good "> for individuals and companies. @our mem!ership shows that you care a!out the industry. @ou can also develop many prospects from your participation 6hat image do you want to convey< "u!lic relations can !e more important to an individual salesperson than to a company. @our image is an +intangi!le+ asset that affects sales as much as your +tangi!le+ assets &products'. The way people see you on a day to day !asis is very important. Therefore, pu!lic relations should !e a way of life as well as a strategy for e$posure. "rofessionalism is the !est ">.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

7. P56LI'I!8:
"u!licity means getting e$posure through the news media, utili7ing announcements prepared !y companies or the media of newsworthy stories or events. "u!licity also can mean feature articles in maga7ines. This coverage or +free advertising+ can have spectacular results. "u!licity often succeeds where advertising fails: Cre*i.ilit4 6hen people read an article in the paper or hear a story on the news, they automatically assume it is authentic and originated !y the media.

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

Dramati9ation "u!licity can convey, +6e are your neigh!ors, struggling with you and doing our part to improve life around us.+ "u!licity, especially on a local level, helps create a feeling of community.

"u!licity takes many forms. @our company or a pu!lic relations firm prepares press releases. These !rief, newsworthy stories highlight you or the company in a way that interests the pu!lic. The difficulty is getting the media to use the story. To have your press releases pu!lished regularly, you must have e$pertise in pu!licity as well as good connections with the news media. From a marketing perspective, pu!licity is one component of promotion. The other elements of the promotional mi$ are advertising, sales promotion, and personal selling. "romotion is one component of marketing.

:etween the client and selected target audiences, pu!licity is the

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

management of product or !rand related communications !etween the firm and the general pu!lic. (t is primarily an informative activity &as opposed to a persuasive one', !ut its ultimate goal is to promote the client*s products, services, or !rands. , pu!licity plan is a planned program aimed at o!taining favora!le media coverage for an organi7ation*s products or for the organi7ation itself, to enhance its reputation and relationships with stakeholders.

, !asic tool of the pu!licist is the press release, !ut other techniques include telephone press conferences, in studio media tours, multi component video news releases &;9>Ds', newswire stories, and internet releases. For these releases to !e used !y the media, they must !e of interest to the pu!lic &or at least to the market segment that the media outlet is targeted to'. The releases are often customi7ed to match the media vehicle that they are !eing sent to. Getting noticed !y the press is all a!out saying the right thing at the right time. , pu!licist is continuously asking what a!out you or your company will pique the reader*s curiosity and make a good story< The most successful pu!licity releases are related to topics of current interest. These are referred to as news pegs. ,n e$ample is if three people die of water poisoning, an alert pu!licist would release stories a!out the technology em!odied in a water purification product. :ut the pu!licist cannot wait around for the news to present opportunities. They must also try to create their own news. 0$amples of this include: $ontests Art exhibitions Cvent sponsorship Arrange a speech or tal6 %a6e an anal"sis or prediction ssue a report

24

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

The advantages of pu!licity are low cost, and credi!ility &particularly if the pu!licity is aired in !etween news stories like those that on evening T; newscasts'. 9ew technologies such as we!logs, we! cameras, we! affiliates, and convergence &phone camera posting of pictures and videos to we!sites' are changing the cost structure. The disadvantages are lack of control over how your releases will !e used, and frustration over the low percentage of releases that are taken up !y the media.

25

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

9. 1IRE'! $AR:E!ING:
Airect marketing is a su! discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing or advertising. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves unsolicited commercial communication with consumers or !usinesses. The second characteristic is that it is focused on driving purchases that can !e attri!uted to a specific +call to action.+ This aspect of direct marketing involves an emphasis on tracka!le, measura!le results &known as +response+ in the industry' regardless of medium. The most common form of direct marketing is direct mail, where the marketers use a reduced +!ulk mail+ postal rate to send paper mail to all postal customers in an area or all customers whose addresses have !een taken from a list. The second most common form of direct marketing is telemarketing, where marketers call selected &or random' telephone num!ers. 0mail Marketing, including spam may have passed telemarketing in frequency at this point, and it is a third type of direct marketing. , fourth type of direct marketing, !roadcast fa$ing, is now less common than the other forms. , related form of marketing is infomercials. They are typically called +direct response+ marketing rather than direct marketing !ecause they try to achieve a direct response via television presentations. ;iewers respond via telephone or internet, credit card in hand.

Airect marketers also use media such as door hangers, package inserts, 26

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

maga7ines, newspapers, radio, television, email, internet !anner ads, pay per click ads, !ill!oards, transit ads, etc.

;. <IRAL $AR:E!ING:
;iral marketing and viral advertising refer to marketing techniques that use pre e$isting social networks to produce increases in !rand awareness, through self replicating viral processes, analogous to the spread of pathological and computer viruses. (t can !e word of mouth delivered or enhanced !y the network effects of the (nternet. ;iral marketing is a marketing phenomenon that facilitates and encourages people to pass along a marketing message voluntarily. ;iral promotions may take the form of funny video clips, interactive Flash games, advergames, images, or even te$t messages. (t is claimed that a satisfied customer tells an average of three people a!out a product or service he8she likes, and eleven people a!out a product or service, which he8she did not like. ;iral marketing is !ased on this natural human !ehaviour. The goal of marketers interested in creating successful viral marketing programs is to identify individuals with high %ocial 9etworking "otential &%9"' and create ;iral Messages that appeal to this segment of the population and have a high pro!a!ility of !eing passed along. The term +viral marketing+ is also sometimes used pe#oratively, to refer to stealth marketing campaigns the use of varied kinds of astroturfing !oth online and offline to create the impression of spontaneous word of mouth enthusiasm.

27

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

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

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

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

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

2!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

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

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

3"

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

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

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

?@. 3ord Of $outh:

6ord of mouth promotion, also known as !u77 marketing and viral advertising, is an attempt !y marketers to make use of the word of mouth +channel+ in promoting certain products or services. (t is felt that this form of communication has valua!le source credi!ility, as people are generally inclined to trust someone*s opinion if they feel that it is offered freely and without prompting, compulsion, or personal interest in communicating the information. "eople are more inclined to !elieve word of mouth promotion than more formal forms of promotion &i.e. advertising' !ecause it is assumed that the communicator was satisfied !y the goods or services provided and is unlikely to have an ulterior motive &i.e. they are not out to sell you something'. ,lso, people tend to !elieve people whom they know. 6hile any marketers places e$treme value on word of mouth, this has historically !een achieved !y creating products or services that generate such +!u77+ naturally. The relatively new method of 6BMM !ypasses the need to create satisfied customers, and instead attempts to in#ect positive +!u77+ into conversations directly. 6hile marketers have always hoped to achieve word of mouth, many suggest there are serious ethical concerns in trying to generate word of mouth directly. 6ith the increasing use of the (nternet as a research and communications platform, word of mouth has !ecome an even more powerful and useful resource for consumers and marketers. Tracking this online *!u77* has led to the rise of a range of services and tools known as :u77 monitoring within the sphere of Bnline "u!lic >elations.

32

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

??.

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

Arti+les t'at 4o1 )rite

the

$edia

(s there something in your industry or market

a!out you have a strong impression< Consider writing an article for the local newspaper or a maga7ine. (n your article, use the opportunity to descri!e what you*re doing to address the issue through use of your !usiness. E*itorials an* letters to t'e e*itor Bften, program providers are

e$perts at their service and understanding a particular need in the community) newspapers often take strong interest in information a!out these needs, so staff should regularly offer articles &of a!out .FF to GFF words' for pu!lication Press 3its This kit is handy when working with the media or training

employees a!out working with the media. The kit usually includes information a!out your !usiness, pictures, information a!out your products, commentary from happy customers, etc.

Press releases or ne)s alerts

They alert the press to a ma#or event

or accomplishment and requesting, e.g., it get included in the newspaper) they e$plain who, what, where, why and when) some include pictures, quotes, etc. to make it easier for the reporter to develop an announcement or story. P1.li+ ser(i+e anno1n+ements 7PSA8s efforts. Csually, these "%,Ds are free. Many radio and some

television stations will provide pu!lic service announcements for nonprofit

33

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

Ann1al re,orts && Aisseminate these to key stakeholders) they*re ripe with information if they include an overview of your year*s activities, accomplishments, challenges and financial status.

Colla.oration or strategi+ restr1+t1ring && (f you*re organi7ation is undertaking these activities, cele!rate it pu!licly.

Net)or3ing && %pread the word to peers, professional organi7ations and those with whom you interact outside the organi7ations, e.g., educators, consultants, suppliers, clients, etc.

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

Presentations

@ou are pro!a!ly an e$pert at something. Find ways

to give even short presentations, for e$ample, at local seminars, Cham!er of Commerce meetings, trade shows, conventions, seminars, etc. (t is ama7ing that one can send out 2FF !rochures and !e lucky to get 2 people who respond. @et, you can give a presentation to /F people and -2 of them will !e very interested in staying in touch with you.

Relations'i,s )it' 3e4 sta3e'ol*ers

(dentify at least one

representative from each ma#or stakeholder group and take them to lunch once a year. 6hat seem as short, informal e$changes can cultivate powerful

34

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

relationships of interest and concern.

S,e+ial e(ents service or campaign, etc.

These tend to attract attention, and can include, e.g.,

an open house, granting a special award, announcing a ma#or program or

S,e+ial offers

6e see these offers all the time. They include, for

e$ample, coupons, discounts, sweepstakes, sales, etc.

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

ro/otiona( too(s

0ach of the a!ove components of the promotional mi$ has strengths and weaknesses. %everal factors should !e taken into account in deciding which, and how much of each tool to use in a promotional marketing campaign:

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

708 Mar3et si9e an* +on+entration (f a market si7e is small and the num!er of potential !uyers is small, then personal selling may !e the most cost effective promotional tool. , good e$ample of this would !e !usinesses selling software systems designed for supermarket retailers. Bn the other hand, where markets are geographically disperse or, where there are su!stantial num!ers of potential customers, advertising is usually the most effective.

35

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

728 C1stomer information nee*s %ome potential customers need to !e provided with detailed, comple$ information to help them evaluate a purchase &e.g. !uyers of equipment for nuclear power stations, or health service managers investing in the latest medical technology'. (n this situation, personal selling is usually required often using selling teams rather than #ust one individual. :y contrast, few consumers need much information a!out products such as !aked !eans or !read. "romotional tools such as !rand advertising and sales promotion are much more effective in this case.

36

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

37

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Setting Pro/otiona( EB enditures:

0sta!lishing the amount to spend on promotional is difficult. :elow are some factors to consider in setting the si7e of your promotion !udget.

Mar3et s'are

, company that has a higher market share

generally has to spend more on advertising to maintain its share.

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

Mar3et gro)t'

Companies competing in fast growing markets

should spend comparatively more on advertising.

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

Pro*1+t ,ri+e :oth very high priced &and premium' products and very low priced &or discount' products require higher ad e$penditures !ecause, in !oth cases, price is an important factor in the !uying decision. The !uyer has to !e convinced &through advertising' that the product is a good value.

Pro*1+t :1alit4

=igher quality products require greater

advertising effort !ecause of the need to convince the consumer that the product is unique Brea*t' of ,ro*1+t line Companies with a !road line of products have to spend more on advertising compared to companies with

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

speciali7ed lines.

(ne$pensive "romotion %uggestions:

(f your promotion !udget is small, !elow are some ine$pensive, appropriate and effective methods of promotion for the new food processor include: H "ersonal selling H "roduct demonstrations H Airect mail H :usiness cards H @ellow "age listing H %eminars H 9ewsletters H Contests H Flyers H 6indow !anners H Greeting cards H %ports team sponsor H =ome parties H 0thnic services languages spoken

3!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Rationalising +osts
FMCG companies will have to increase their ad spends to sustain their market shares. 6hat is vital is an FMCG companyDs a!ility to keep its operating margins high enough to sustain that rise in ad spends. "ut differently, FMCG companies should !e a!le to prune their costs. That is why almost all FMCG players in (ndia are constantly working on ways to trim their costs. %ome have !een a!le to show heartwarming results. Consider Marico. The company has !een !ogged down !y high material costs, which is at a high of 2GI of its sales. That is why Marico has taken up to total costs management practices and has roped in ,nderson Consulting to advice on its cost initiative. %ays =arsh Mariwala, MaricoDs managing director J6e are looking at !uilding an aggressive cost structure, which will help in improving our marginsK. Aa!ur too needs to look at its cost matri$ proactively. For, Aa!urDs margins are low and the company wants to hike its ad spends. The only way out for Aa!ur is to rationali7e its costs. FMCG ma#ors cannot escape hiking their ad spends in the emerging post 6TB scenario and so they need to review their cost structure.

#'4 Promos;
Marketers have reali7ed that advertising is not enough. (n fact research has proved time and again that direct marketing and promos are the engines for driving the num!ers. ,nd then customers these days are !ecoming e$tremely Jdeal orientedK. They have !argains and go out of their way to gra! free!ies and discounts. ,lso, unlike ads, promos give measura!le results to the client. J"romotions are more interactive than ads, and they also entice the consumers to experience the brand or the service2E sa"s Sunil Ihurana of 4"

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

,lso, with mounting competition and undifferentiated advertising, promos !ring in a !reath of fresh air for the consumer. J(t !ridges the gap !etween advertising and sales purchase, clears the clutter and helps Lon the fenceD customers make the right purchase decision,K says 9ath.

,nd then with rising media costs, how many corporate can afford to advertise< "romotions instead are a cost effective alternative. Corporates like liquor and to!acco companies are left with little choice !ut to resort to these off !eat marketing efforts. 9ot surprisingly, most of the ad agencies are now looking at adding , LpromotionD or direct marketing arm to their e$isting !read and !utter advertising !usiness. 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. (n any case, there is a great overlap !etween these marketing strategies. For instance, when 4raft Foods recently launched Tang in (ndia, they decided to go in for aggressive nationwide promotional campaign to !oost sales. The main aim was to set Tang apart from the desi >asna. %o, they did wet sampling of the product across various retail outlets in eight cities.

41

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Don<t o(er*o It%

That is a golden rule that marketers should follow while designing promotions. :rands that use too much sales promotions are perceived to !e LcheapD in the long run. There are other downsides of e$cessive promos too. There are promos that may seem to achieve results, !ut those are only short term. Critics argue that offers simply pre pone the purchase and donDt add any incremental value to it. For instance, if a shirt !rand is has a promotion where they ar offering a tote !ag free with purchase of two shirts for the month of Mune. JThe sales may pick up during the offer, !ut there is a loss of sale in the following month,K says 4elkar of %hopperDs %top. J6hich means the people who had the !uy the shirt in Muly simply preponed their purchase due to the offer.K

,lso, over promoted products often leave customers asking for more. ,nd thatDs e$actly what has happened to the white goods and consumer dura!les segment. JThe industry has spoilt the consumer with so many offers and free!ies, that they are no longer willing to !uy the goods at the full price,K says 4elkar. 6hich means unless there is a -1 inch colour T; free with a washing machine, it is not a good dealN

42

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

Promotions (s A*(ertisements%
"romos are interactive, ads represents one way communication. "romos are directed consumers at an individual or personal level. ,ds have a mass appeal. "romos lead to immediate, short term results. ,ds are a part of a long term !rand !uilding strategy. "romos add tangi!le value to goods and services, whereas ads are intangi!le. "romos are more cost effective than ads. The results of promotions can !e measured more easily, whereas in case of ad itDs difficult to measure the profita!ility !enefits. "romotions can !e targeted at niche target audiences.

A*(ertisement tells= ,romotion sells%

Free.ies%
6ith every =arvest Gold ?FF gms !read, you get a free packet of two sweet !uns. 0$change your old mi$ie for a new (nalsa Ma$ie food processor and get >s.-FFF off. :uy any two 0$cali!ur shirts or rousers and get a wristwatch worth >s./2F free. Bn !uying >s./FFF worth of fa!ric from :%E %uitings, you may win a

43

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

-2 day trip to %wit7erland. :uy a 4odak 4:-F camera and win free films for a lifetime. (f you score ?FI or a!ove in e$ams, get a %oft %erve %undae worth >s.// free at McAonalds. These are called F>00:(0%' The free!ie is supposed to make or rather actually force you to !uy a particular !rand, try it and stick to it. They want you to keep them in !usiness forever. From consumer dura!les to fast moving consumer goods &FMCG' giants to white goods companies to auto manufacturers, everyone is into promotions.

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

There was a time when advertising was considered as the only tool for !oosting sales. The perception is no longer the same. 6ith marketers e$ploring the legitimacy of other tactics and !elow the line activities like contests, offers, promos, discounts and free!ies, days of plain vanilla advertising have passed. D8hile sales promos have been around since the JKBs2 it is field promotion through road shows2 demos2 sampling and so on2 that has become extremel" popular of late2E explains Atul Nath2 0irector of $andid2 a promotion mar6eting firm' The turning point for the promotion industr" came during the &LLL $ric6et 8orld $up2 when man" corporate giants launched aggressive promotional activit"' Remember D!rittania Ihao2 8orld $up ;aoE9

44

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 ma#or !oost for this sector came with the ama7ing stories of ,(6, and ,kai) within a span of a year these newcomers had captured the imagination of the country with their un!elieva!le e$change offers. JThe advertisement industry is growing and continues to !e the most important part of the marketing mi$K, clarifies 9ath. J the ad spends are growing !ut the promos !udgets is growing faster than ad spends per second. (n short, companies are no longer averse to e$ploring alternatives for selling their product or enhancing the !rand image. Today promotions have taken the centre stage along with advertising. %o, the marketing teams and !rand managers chalk a separate strategy for direct marketing and promotions. n short2 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. %o, the marketing teams and !rand managers chalk a separate strategy for direct marketing and promotions.

45

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

C,%0 %TCA(0%
CASE ST$D! ARIE CHAMPIONSHIP #HITES FREE TENNIS ESSONS AT TESCO PROCTER > GAMB E $

CASE ST$D! 0
RIBENA & #IN CARS THAT MA?E !O$R DAD OO? COO G A"O SMITH ? INE

CASE ST$D! 2
PEPSI= CO?E AND TH$MS $P

46

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

CASE ST$D! ARIE CHAMPIONSHIP #HITES FREE TENNIS ESSONS AT TESCO PROCTER > GAMB E $?

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

A)areness

Free Mail&In

6ac%ground:
,riel washing powder is a specially formulated detergent that keeps whites looking whiter for longer. For the last two years, ,riel had run advertising campaigns, featuring Tim =enman, to demonstrate its a!ility to keep whites Lchampionship whiteD wash after wash. These had failed to make inroads into the key competitorDs target audience of ,: mid family mothers.

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

To enhance the association of ,riel with tennis and the Eawn Tennis 47

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

,ssociation. To make significant inroads into the key competitorDs core market.

To !uild on previous LChampionship 6hitesD campaigns and create a point of differencefor ,riel in a market of perceived parity.

Strateg4%
To target ,: mothers with children aged 2 -. who research indicated had a high interest in tennis. To make ,riel synonymous with keeping tennis whites white, !uilding on research that indicated consumers perceive this as a torture test for any detergent. To develop an alliance with the Eawn Tennis ,ssociation that would emphasise the !randDs strong #u$taposition with playing tennis. To create an added value in store promotion offering a reward for every purchase of ,riel.

S1mmar4%
The offer to Tesco customers was a free tennis lesson from an ET, licensed, qualified coach in return for the purchase of any ,riel product. To claim their tennis lesson consumers were asked to mail their till receipt and a C2 stamped addressed envelope to the offer address. (n return, they received a !ooklet containing a voucher for one free introductory tennis lesson lasting one hour and valued at up to O.2. The !ook also included a directory of over .FF participating coaches nationwide. 7n receipt of the boo6let2 the consumers telephoned their chosen 4

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

coach to boo6 a lesson stating that the" had an Ariel ,ree Tennis Moucher' The promotion was launched during the first wee6 of 8imbledon when the interest in tennis reaches its pea6' =umorous radio advertisements were a key part of the communication painting an amusing picture of individuals who were likely to !enefit from free tennis lessons. (n store support included end aisle displays with hanging !anners, shelf !arkers, ,2 leaflets and shippers

E(e/ents:
Aesign and artwork. "rint and production. ,greement for use of Tim =enman on promotional materials. "B% distri!ution. ET, agreement' >adio advertising. >ecruitment of coaches. >esponse management.

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

Following purchase consumers mailed their till receipt and a C2 stamped addressed envelope to the offer address 4!

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

=ouseholds were a!le to su!mit multiple applications &for mem!ers of the household' provided each claim was accompanied !y a separate proof of purchase. ,pplicants received a !ooklet containing a directory of participating ET, coaches and a voucher for a free one hour tennis lesson.

,pplicants selected their coach and then telephoned him8her to !ook a lesson stating that they had an ,riel Free Tennis Eesson voucher.

Materials% =anging !anners.

,2 leaflets. %helf !arkers. Aisplay shippers. Airectory8voucher !ooklets.

Res1lts% The campaign resulted in a /?I sales uplift of ,riel in Tesco stores.
There were -F5,12F free tennis lesson redemptions over the -F week

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

promotional period. The promotion was a key part of the .FF/ JChampionship 6hitesK campaign that resulted in ,riel !ecoming the C4Ds market leading washing detergent for the first time in 1 years. Market share increased !y 2I. Aata collected from the redemption process added -FF,FFF new names to ,rielDs data!ase

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

CASE ST$D! 0
RIBENA & #IN CARS THAT MA?E !O$R DAD OO? COO G A"O SMITH ? INE

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

A)areness Trial Free Item Pri9e Promotions

Ba+3gro1n*%
Traditionally >i!ena had !een targeted at mothers and children ' =istorically, promotional activity had !een price led. GFI of sales to the Lout of homeD market were to teenagers and young adults.

O./e+ti(es%
To drive trial, awareness and consequently sales of >i!ena. To position the !rand with teenagers and young adults as the Ldrink for meD.

Strateg4% The promotion needed to communicate with this core market &-? /1
year olds' and provide an irreverent concept that will appeal to Lthe child in themD

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

The !rand equity, >i!ena!erry, was to feature strongly in the promotion.

S1mmar4%
Cnique >(:09,:0>>@ key rings, with eyes that popped out when squee7ed, were housed in the neck collars of the three million promotional !ottles of >i!ena under the tagline LGrow Cp Bne AayD. :ottle collars coolD. also carried details of an instant win mechanic with the cheeky headline L6in Cars that make your Aad look There were .2 pri7es of second hand cars. 9on winners had a further opportunity to enter !y answering a simple question on line. The promotion was supported with T; and 1? sheet posters a!ove the line as well as wo!!lers, !unting and shelf !arkers at point of sale.

Elements% Aesign
,TE advertising "remiums 6e!site entries ,greement with Capri Clu! (nternational &to give assistance with car purchase' "oint of %ale 6inners list

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

The free >(:09,:0>>@ key rings were mounted inside the !ottle collars of the promotional packs.

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

0@ PRIBE PROMOTION A INSTANT #IN%

(nstructions on the !ottle collar told purchasers to look at the reverse of the !ottle la!el to find out if they were a winner. Eosers were given the opportunity to try again !y answering a simple question on the we!site. 6inners telephoned to register their winning la!el and then completed the

entry form on the reverse of the la!el and sent it to the offer address. 6inners received O.,FFF cash to purchase a second hand car that would have made their Aad look cool. ,n additional O2FF was given to cover insurance. The O.FFF was !ased on a car with 3 months road ta$ and -F months MBT. 9o purchase was necessary and plain paper entries were su!mitted to the offer address P only one per envelope. 0ntries were restricted to those aged -5 or over. The promoter accepted no responsi!ility for the cars selected, the cost of a

54

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

safety inspection !eing included in the pri7e.

0ntrants were responsi!le for ensuring they had a full driving license.

Materials%
>(:09,:0>>@ key rings. (mage :ottle collars. 1? sheet posters. (n store posters. Free standing units. :unting. %helf !arkiers and wo!!lers. Trade presienters.

Res1lts%
>i!ena 2FFml achieved its highest monthly value sales ever. Cp 13.3I against same period previous year ' %ingle serveDs highest monthly sales for . years P up ?I versus ,ugust .FFF. >i!ena carton &although un promoted' achieved its highest sales for .. months. >i!ena !ecame 9o.- selling soft drink &including car!onates' in a num!er of accounts P high streets, forecourts and independents. %ales value in ,irport %ervices moved >i!ena 2FFml from 9o. .5 !rand to 9o. . !rand in the soft drinks sector. >(:09,:0>>@ key ring !ecame a Lmust haveD with consumers writing and calling to find out how to get hold of one.

Comment%
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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The key ring and the car complemented each other perfectly. The novel premium and impactful "B% were instrumental in hitting the right note with this e$tremely difficult target market.

CASE ST$D! 2
CASE ST$D! ON PEPSI= CO?E AND TH$MS $P :efore advertising a product, itDs very important to position a product. Definition of ,ositioning% "ositioning is the act of designing the companyDs offerings and image and occupy a distinctive place in the target marketDs mind. The end result of positioning is the successful creation of a market focused value proposition, a cogent reason why the target segment should !uy the product.

!-E <ARIO5S S!RA!EGIES A1OP!E1 68 !-ESE 6RAN1S !O A1<ER!ISE !-EIR PRO15'!S: -@ PRINT MEDIA% "rint media is one of the oldest forms of marketing. Cold drinks come into the category of impulse !uying. Therefore, it is essential for them to !e seen around. ,lthough print media is much more infle$i!le than electronic media is, !ut it is an effective medium for companies to promote their !rands a@ Hor*ing an* .anners: ,s "epsi is a youth drink, hording and !anners of "epsi are generally seen at places like college, canteens, theatres and amusement parks and also during entertainment shows.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

CBC, CBE, as a !rand emphasi7es more on print media as a channel of marketing. (t !elieves in the concept of Jpresence marketingK i.e. to !e seen around. Therefore, they want to Jplaster every town in redK. For e$ample a student should not only see coke !anners and hoardings in the college campus !ut also when he comes out on the road, goes into a restaurant and goes into any shop. CokeDs !anners and hoardings are very catchy !ecause of the !right red colour and the latest film stars they use for promoting their product. T=CM% C" !anners and hoardings are not seen so frequently as "epsi and Coke. (ts !anners and hoardings are seen near sports events and stadiums to promote the spirit of dare devil and courage . The !anners and hoardings contain the famous Thums Cp logo and slogan featuring starts mostly like ,kshay 4umar depicting their daredevil image.

!. 9ewspapers:
9ewspapers are an efficient and common media for pu!licity and promotion. The advertisement and the promotional matter in news papers are generally seen !y every one of us, as we all read newspapers. 9ewspapers are mainly used to promote the various offers and

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

discounts and the sponsored shows and events !y these !rands. Though it is seen that "epsi and Coca Cola are carrying out e$tensive newspaper advertising, Thums Cp advertisements are not so frequently seen.

c. 0lectronic Media:
0lectronic media is considered to !e one of the most effective ways of promoting a !rand. 0lectronic media offers a lot of fle$i!ility to the companies . Bne of the latest and effective ways of electronic media is the internet. (nternet is a fast growing medium of advertising. ,nd even these !rands are not missing out on the opportunities of advertising on the net.

0@ TE EVISION ADVERTISEMENTS% Television advertisements play a ma#or role in portraying the image of any !rand. (t can !e seen that there is cutthroat competition !etween the / !rands.

Pe,si: J=,( 4B( M,6,:K the trendiest attempt of "epsi to attack its counterparts. 6ell, "epsi ads with its catchy story lines and happening slogans are fast !ecoming one of the hot favourites on television . "epsi ads engage viewers in animal love and simple story well told. "epsi people design different ads according to the occasions. Auring the cricket world cup special ads were designed, featuring cricketers and the new slogan was Jnothing official a!out itK and this gives a higher edge to "epsi over Coca Cola, the official drink of the world cup. 5

PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

The counter attack Coke and Thums Cp. This can clearly !e seen in "epsiDs ad where they have made a mockery of the coke ad !y showing a sha!!y image of =rithik, a coke model. "epsi tries to portray itself as a youth drink and hence it uses models for its promotions accordingly. For e$ample they have used %hahrukh 4han, 4a#ol, >ani Mukher#i, "reity Qinta amongst the young generation of film stars and %achin Tendulkar, >ahul Aravid, %aurav Ganguly, @uvra# %ingh amongst the cricketers. COCA CO A% Coca cola is now giving a real tough competition to "epsi in the ad !usiness. The latest cokeDs ad featuring ,ishwarya >ai and =rithik >oshan is really giving the "epsi ads a run for their money. Coca colaDs Lthe !oy meets the girlD strategy is really catching up with the consumers. 6hether it is ,ishwarya P ,amir chatting away on the net and coming together !ecause of Coca Cola or ,ishwarya P =rithik fighting for their college votes and coming together !ecause of Coca Cola has really clicked with the consumers. Coca cola advertisements showing a family sharing their emotions and it is one thing that all the people around he world can identify with. The ads featuring ,ishwarya >ai and ,amir 4han during a certain cricket series were a huge success !ecause they really motivated the family to come together and watch cricket match, and inspired them to have Coca Cola while watching the match if they wanted (ndia to win. Coke ads really depict the image of coke as !eing the worldDs no. soft drink company. Coca Cola has also !agged in some of the most successful personalities in (ndia. For e$ample !ig names in the film industry like ,amir 4han, ,ishwarya >ai, 4arishma 4apoor, Myotika from south, !ut it !roke all ice when it aired the ads featuring =rithik >oshan one of the !iggest stars of the nation.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

TH$MS $P% Eatest strategy of %alman 4han going in pu!lic and throwing the Jgrown up challengeK has really hit the !ulls eye. (t has made Thums Cp a sym!ol of strength and dare and it is to such an e$tent that youngsters #ust for the sake of showing themselves grown up and daring have started to drink Thums Cp. The small survey conducted showed that though the !oys were having "epsi and Coke, they #ust mentioned Thuns Cp as their favourite drink !ecause they think that Thums Cp is a grown up drink. ,lso as Thums Cp promote their spirit to win, Thums Cp ads are always designed in this image. This can !e seen in the ads whereas the models %unil %hetty and %alman 4han #ump from the terrace #ust to get a Thums Cp.

/. INTERNET%
"epsi hosts its own we!site namely ww.pepsi.com. This particular we!site is very attractively designed and appeals to the youth. (t has very trendy look and contains the "epsi logo and various other slogans. (t caters to the (ndian as well as international consumers. The we!site is very informative on the various "epsi strategies for promoting their !rand. (t gives us information on the various advertisements featuring on television and also forthcoming advertisements. This we!site also hosts many contests e$clusively availa!le on the net and gives away some cool pri7es, which appeal to the youth. Therefore, the we!site of "epsi promotes the spirit of the young generation. "epsi not only hosts its own we!site !ut it advertises on other popular we!sites like indiatimes.com. This medium is very effective !ecause more and more people are accessing the internet everyday .

Coca cola also hosts its own we!site named www.cocacola.com and it is indeed a very well designed and well conceptuali7ed we!site. ,s you logon to

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

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

The we!site tries to promote coke as the JworldDs favourite drinkK. Cnlike "epsi cokeDs we!site does not emphasi7e on the !rand !ut the people who share their moments with coke. This we!site not only provides complete information a!out the company !ut 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 e$perience of the people with coca cola. These features of the we!site make the consumer really glued to this site and e$plore it more and more. Coca Cola also advertises on other popular we!sites of the world and also sponsors some of their events. Thums Cp has no official we!site since it is a part of the coca cola company, !ut the company does advertise for the !rands on other we!sites.

1. S OGANS AND OGOS%

The slogans and logos are in the true sense a picture of the image, which the !rand is trying to promote. Bne can identify the !rand and its characteristics with the slogans and also the logos. (n a market situation like that of "epsi, Coke and Thums Cp, where here is cut throat competition and even one mistake could make them lose their market share, it is very important to !e 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 thum! and the works Jtaste the thunderK we can say that it is a thums up advertisement or thums up is availa!le somewhere near!y. S0%2 $4 +2& -.5&# .7 ( 6..' ).6. (1' (1 &77&%+$>& 4).6(1 .7 ( 9#(1'.

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

"epsiDs logo is one of the most famous logos in the world and people can really identify with it. (t goes along with "epsiDs image of !eing a young and trendy drink. (nfact the logo is so popular with the youth that they even wear accessories containing the pepsi logo. "epsiDs slogan right from the times of Jyehi hai right choice !a!yK to Jyeh dil maange moreK have always !een popular amongst !oth youth and to some e$tent has !een responsi!le for making "epsi a huge sell out. The latest "epsi commercials with starts like ,mita!h :achhan and "reity Qinta spelling out the "epsiDs slogan Jhai koi #awa!K , in their own style has really caught on with the kids. 0ven "epsiDs slogan during the world cup Jnothing official a!out itK was really popular among the cricket lovers. CBC, CBE,Ds logo is a !ottle of cake with coca cola in a unique manner written on it. The !right red colour used catches the eye of the viewer and can easily identify with the !rand. ,lso the slogan of J#o chahe ho #aye coca cola en#oyNK in (ndia is quickly catching on with the people. The slogan has a very (ndian touch to it and a sweet melody. ,lso coca cola designs special slogans for different situations. For e$ample when it is sponsoring any cricket match then the slogan is Jeat cricket, sleep cricket, !ut drink only coca colaK, these slogans really work out !ecause they really !lend with the atmosphere around you

The T=CM:% C" logo and the slogan are true identity of itself. Thum!s up tries to promote the spirit of dare devilry and the desire to win and so does its logo. For long people in (ndia have identified with thum!s up with its logo and the slogan, Jtaste the thunderK .This slogan has !een with Thum!s up for quite some time now, and it says that once you are addicted to the strong taste of thum!s up you will never have any other drink.

SPONSORSHIP%

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PROMOTION ACTIVITIES REFERENCE TO FMCG PRODUCTS

%ponsorship is yet another way to promote a !rand. ,nd this is one channel, which these cold drinks do not miss out on. %ponsoring entertainment, sports and other events is one way, which the three !rands are counting upon to promote their !rands. "epsi advertises itself as the drink of new generation and hence it !ecomes !ut o!vious for "epsi to advertise at places and sponsor events where they find young crowd. 6e find that "epsi sponsors concerts and award functions, which are a hot favorite with the youth. 0.g. "epsi sponsored the visit of Michael Mackson to (ndia. (t also

goes sponsoring college festivals. (t also complete with coca cola for sponsorship of cricket series. (t is also seen that the (ndian cricket team wears outfits sponsored !y "epsi. CBC, CBE, is very well known for sponsoring cricket events. (t also was the official cold drink for the world cup cricket. (t designs special ads during these events for print as well as the electronic media for e.g. the slogan Jeat cricket, sleep cricket drink only coco colaK, goes very well as the spirit of cricket and gives the message to every cricket lover that cricket should !e their favorite drink. :ut however during this time "epsi took the lead with its promotional slogan Jnothing official a!out itK.

CB40 also sponsors various programs and concerts. >ecently it has also started sponsoring films to some e$tent, with the added advantage of !eing promoted in the movie. 0.g. Taal and @aadein. This strategy works with the people who are influenced !y film stars and would follow and choice of theirs shown in the movies. T=CM:% C" mainly sponsors sport events like !ungee #umping training centreDs set up at various places. ,d its ads also try to show people who are daring and want to win for Thum!s Cp and hence it is great hit at these sports events, especially amongst the males.

63