PROMOTIONS IN RETAIL

SALES PROMOTION• It is the process of persuading the

potential customer to buy the product.

• Use of short term incentives to encourage the purchase of the product.

• Helps to shape the buying patterns, attract new customers and increase the sales.

TYPES Customers sales promotion Trade sales promotion Sales force promotion

WHY SALES PROMOTION Stop, Shop and Buy Buy Bigger Repeat Purchase Products have become more standardized Customers have become price sensitive It creates an immediate positive impact

on sales Advertising has become more expensive

and less effective Trade has become more powerful Excessive stock

SALES PROMOTION TOOLS Coupons Contests Demos Samples Frequent Shopper Schemes Prizes Referral Gifts Combo Packs Corporate Coupons (Sodexo)

PROMOTIONAL MIX ELEMENTS

AdvertisingSales

PromotionStore

AtmosphereDigital

Marketing

Personal SellingE-Mail

Marketing

Publicity Word Of Mouth

Personal Impersonal

Paid

Unpaid

KFC (ALPHA ONE MALL)OUTSTORE PROMOTIONS 4% of monthly sales is automatically allocated to

National level promotions Promotions include: TVCs, in film placements

(especially in South India), Billboards and store display posters

Mobile Vans for areas where KFC is not present Earlier used to sponsor events but stopped due to

some issues

Out-store Promotions Contd..

For local promotions ( store wide or city wide) prior permission needs to be taken.

Local promotion: Parking slips of Alpha One mall were sponsored by KFC

Designing a new app to integrate all the Yum brands.

INSTORE PROMOTIONS Decided by the top management to maintain

consistency Not much instore promotions only leaflets

and some posters Main focus on service not on promotions Corporate Discounts: Sodexo Local promotions: Some store give discounts

to college students

MAX (ALPHA ONE MALL)OUTSTORE PROMOTIONS Security Checks in the UB of the mall had

posters of MAX Current scheme displayed just outside the

store 3% of monthly sales allocated to promotion 2.5% outstore promotion, 0.3-0.5% instore

promotion Outstore Promotions: Billboards, Leaflets in

newspapers, a self sponsored event Max Superstar (held recently in Vadodara)

INSTORE PROMOTIONS Very less promotions in store Combo discounts shown just above the stock which is

discounted Walls used for current store wide promotions going on Not much discounted products available, as already

prices are low. Just because of competitors, seasonal sales promotions are done

A slow moving or out of fashion is put on discount just to clear stock

Loyalty card for frequent shoppers, and loyal customers are pre informed about any upcoming promotion scheme.

INFO Store Format: Convenience Store Around 700 Reliance Fresh outlets across the

country Store sells fruits, vegetables, groceries,

staples, fresh juice bars and dairy products Typical Store is 3000-4000 square feet and

catchment area is 1-2 kms around Store visited: Science City

APOLLO PHARMACY India’s largest

pharmacy retail chain

Over 2000 retail stores across 22 states

Store Visited: Science City

APOLLO PHARMACY

DIFFERENCE BETWEEN ONLINE AND IN-STORE PROMOTIONS

- Advertising (Locally)- Sales

Promotion- Atmosphere

- Digital Marketing

- Email & Calling by dedicated

Call centre- No loyalty card or other loyalty

program

N.A. - Word of Mouth

ENRICH HAIR SALON – HIMALAYA MALLPa

idUn

paid

Impersonal

Personal

PROMOTIONAL MIX Advertising

Local cable channel In-store promotion by posters & banners

PROMOTIONAL MIX Sales Promotion

Sponsorship for colleges and clubs Discount coupons during a particular period for

customers Half yearly discount offers Gift Vouchers Association with movies and Enrich academy

Store Ambience

Digital Marketing Uses website and facebook page for marketing

and promoting upcoming offers for academy as well as salon

Personal selling A dedicated team works for calling and e-mailing Provides information on upcoming schemes,

guidance and customization of scheme

Word of Mouth 90% of the business comes through word of mouth

and loyal customers

THE TROPHY RESTAURANT – S.G. ROAD

- Advertising- Sales

Promotion- Atmosphere

- Digital Marketing

- Email & SMS

- No loyalty card or other

loyalty program

N.A. - Word of Mouth

Paid

Unpa

idImpersonal

Personal

PROMOTIONAL MIX

Advertising News paper advertisement In store promotion by posters and banners Bill boards and sign boards on road

PROMOTIONAL MIX

Sales promotion 15% discount for YMCA club members Seasonal festivals Today’s special menu & offers

Store Ambience

Store Ambience

Digital Marketing No significant presence on Digital platform

e-mail & SMS Email & SMS are done by executives of Tomato’s

to the customers and YMCA club members

Word of Mouth Dominant method of promotion

Literature Review

MEASURING THE EFFECT OF RETAIL STORE PROMOTIONS ON BRAND AND STORE SUBSTITUTION

Using store-level scanner data, the authors investigate the effect of retail store price promotion, featuring, and displays on sales of brands of disposable diapers within a city. Models are developed for pooled store pairs to investigate the effect of promotion on store substitution.

Display activity for a brand resulted in increase of sales. One because of brand substitution within the store Second due to individual’s store substitution

ECONOMIC AND UTILITARIAN BENEFITS OF MONETARY VERSUS NON-MONETARY IN-STORE SALES PROMOTIONS

Now a days customers are getting attracted towards non-monetary promotions

The findings show that shoppers who are prone to using non-monetary in-store promotions seek exploration, entertainment and value expression benefits, in common with shoppers who are prone to monetary promotions. Both monetary and non-monetary promotion-prone shoppers feel financially constrained.

Non-monetary promotions may result in improved category value and brand equity benefits.

REFERENCES Kumar, V., Leone, Robert P, “Measuring the Effect of Retail Store Promotions

on Brand and Store Substitution (1988),” Journal of Marketing Research (JMR);May88, Vol. 25 Issue 2, p178

Reid, Mike and Thompson, Peter and Mavondo, Felix T. and Brunso, Karen, “Economic and Utilitarian Benefits of Monetary versus Non-Monetary In-Store Sales Promotions (2015),” Journal of Marketing Management, vol. 31, no. 3-4, pp. 247-268

http://smallbusiness.chron.com/components-sales-promotion-stratgies-used-retailers-10412.html