1. Effective Sales Promotion Techniques

2. What is Sales Promotion
Media and the Non-Media Marketing pressure applied for a pre-determined, limited period of time at the level of the consumer, the retailer or the wholesaler in order to stimulate trial, increase consumer demand or improve product availability.
- American Marketing Association

3. Sales Promotion Types Consumer Trade Sales Force Price Differential
Coupons
Refunds/Rebates
Price – pack deals
Price deals
Value Promotion
Freebies/Free gifts
Samples
Contests/
Sweepstakes
Trade
Buying Allowances
Free merchandise
Allowances
Cooperative ads
Push money
Dealers sales contests
Sales Force
Target Incentives
Bonus
Contests
Sales Rallies

4. Contests HLL’s Vijeyta Point System
Points associated with every HLL product sold
Annual regional comparison of the total points collected by a retailer.
Gift for the winner
TVS Scooty was provided last year
The competition in Delhi covers all the retailers and wholesalers in Delhi.
Prior Crads depicting the Points against each commodity are distributed to all the retailers.
The distributors sales agents carry speific registers while going to the retailers for sales and enter the points details against all the sales.
These agents then send these points details to the HLL headquarters every month.After every 3 months the relative points status(prepared by HLL and sent to the distributors)  of all the retailers is shown to them.
The wholesalers/Retailers do not carry any copy of the points details.
After 1 year, the winner is declared by considering all the entries receieved by HLL from all the Delhi Distributors
HLL’s Vijeyta Point System
Every HLL product has some points associated with it. For e.g. The purchase of a Box of Sunsilk shampoo provides 18 points to the Retailer/Wholesaler
The total points collected by a retailer throughout the year are added and a regional comparison is made after every year. The winner gets a free gift for e.g. A TVS Scooty was provided last year

5. Industry: FMCG

6. Sales Chain Wholesaler Factory Depot Retail Showroom Shop Counter
Customer

7. FMCG: Consumer Promotion

8. Consumer Promotion: FMCG

9. Samples Amul Celebration
Samples of overstock/undersold products distributed across the state on a particular day of a week.
(Region wise)
Consumer educated on the use of the products

10. Freebies Amar Toothpaste
Dental Insurance Policy free with every toothpaste (Sep’02)
Partnered with Tata AIG, Cover of Rs. 25,000
Very successful offer, a large market share cornered
Forced HLL (Pepsodent) to offer the same incentive
Source :

11. “Britannia khao, world cup jao”
Sweepstakes
“Britannia khao, world cup jao”
Launched on: 1st Feb 1999
Britannia cricket booklet
Wrappers
Runs
Wrappers of Britannia products contained contest logos
Each product carried a particular number of “runs”
100 runs -- Britannia cricket booklet
“Scratch and Win”
Mega first prize
WHY A SUCCESS
Thematic promotion – first ever of its kind
Encashed on the Cricket World Cup fever
Avoided Brand devaluation
Pull technique
Company specific promotion rather than product specific
Spread across all levels of distributors
Distribution of prizes on time
TRIP TO WORLD CUP
Source: buiness today

12. Impact 6.4 crores empty packets exchange
Sales - 20% increase during Feb-Apr
Total Sales Rs. 260 crores
Highest promotion recall during the world cup
(53% according to NFO MBL survey)

13. Bru
A contest running on a scratch off calender just like an instant lottery ticket
Contest with display
Cost effective method of sales promotion

14. HLL: Organics Failure of “Buy One Get One” offer:
After launch, they promoted n were not able to compete with Pantene
Success in “Contest” Promotion :
Conducted in new outlets “Bookstores” and given Organics gift hamper
Educated Consumers
High Brand Recall

15. Trade Promotion: FMCG

16. Display Jo Dikhta Hai Wo Biktaa Hai…
GSK Pays Rs. 500/ Month to retailers for hiring a window for Horlicks and Boost etc.
ITC pays Rs. 500/ Month to retailers for hiring a window for Ashirwaad Atta

17. Dealer loader ITC at Panwalla shops:
Minto candies worth Rs.500/- month were provided for a cigarette board display

18. HLL for Rural Markets Wheel In Haat, provides incentive to sellers
Sales boost up 5 times

19. Dealer Spiffs Toothpaste (Rs5)
Provides Insurance policy to employees of Retailers for 2 yrs.
Premium and 6 installments paid by HLL

20. Perfetti’s Sales Strategy
Perfetti has divided its SKU’s into three different Sales Forces P1, P2 & P3
All 3 divisions cater to the same markets
For e.g. the 3 variants of Mentos are divided in these 3 Divisions

21. Perfetti’s Cross Selling
Chatar Patar, a lesser demanded product, is cross sold with Creamfills, a higher selling Product offering a discount on the combined package
Result: increase in the sales of Chatar Patar

22. Retail Industry

23. Pantaloon: Food Bazaar
Flooded with Consumer Promotions
Sales Force Incentives also very good
Trade Incentives - Retail Stores receive from the Companies to boost their sales

24. Jo Dikhta Hai Wo Biktaa Hai…
The Major force driving sales in the retail Industry is VISUAL MERCHANDISING
To Gain Maximum Visibility in The Retail Store, High Incentives are to be paid to the Retail Store
ITC : Britannia :: 16% : 10% Retail Margins. So the Retailer is always interested in giving Higher visibility to ITC Products

25. Sales Force Incentives
Weekly Sales Targets set for every section
The Incentives become 250% on achieving 120% Sales Target
The Sales Force is encouraged to pour in ideas to increase sales
Minor alterations like giving the higher selling product more visibility

26. Effect Of Visual Merchandising
Shift From Brand Blocking to Category Blocking
In Categories, the Display Pattern Follows the Colour Blocking Scheme

27. Color Blocking done Horizontally i. e
Color Blocking done Horizontally i.e. same colored bottles in the same shelf
Before
After