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Sales Promotion
Diverse collection of incentive tools
mostly short term, designed to stimulate
    quicker or greater purchase of
   particular products or services by
         consumers or the trade
Consumer Promotions



Activities targeted at consumers
to:
• Encourage purchase of large
  packs
• Entice switchers (consumer with
  no brand loyalty)
• Help non users for trail
  generation
Sampling




                                           Dry Sampling
Wet Sampling



    Used to increase product trail or increase sales
Coupons




Price reduction offer redeemed in shape of price off, gift, discount
                   on subsequent purchase etc
Premium or Gifts




Targeted to increase consumer offtake in a certain time period
Contests
Price Offs
Trade Development
(Promotions) Expenses
Performance based




                    Performance   Non
                                  Performance




                                                Relationship based
Performance Trade Expenses

Expenses related to activities targeting a quantifiable sales objective

          Placement

          • Expenses related to
            • Installation of displays
            • Shelf space
            • POP / in store communications

          Bulk purchased

          • Trade incentives aimed to induce trade for bulk
            purchasing (Pack Free, Price off) for a certain time
            period

          Specific Target Incentives

          • Cost paid to trade to reach a specific target in a
            specific time period
Promotion
Promotion
Promotion
Non Performance Trade
      Expenses
Expenses related to activities that are not performance related




      Cost paid to trade that are not directly
    performance related and has limited or no
          perceived value for the group
Salesforce Promotions




      Sales Contests
                        Incentive
                        Schemes
Promotion Evaluation

      Promotion Must have Clear Objectives
Promotion Evaluation
    Pre & Post Promotional evaluation must be made for
                effective promotion spending


      Define
 Incremental Sales

             Promotional Scope
            (Channels, Duration)

                                   Incremental
                                     Returns

                                             Key Learnings
                                             (Pros & Cons)
Promotion

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Promotion

  • 2. Diverse collection of incentive tools mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade
  • 3. Consumer Promotions Activities targeted at consumers to: • Encourage purchase of large packs • Entice switchers (consumer with no brand loyalty) • Help non users for trail generation
  • 4. Sampling Dry Sampling Wet Sampling Used to increase product trail or increase sales
  • 5. Coupons Price reduction offer redeemed in shape of price off, gift, discount on subsequent purchase etc
  • 6. Premium or Gifts Targeted to increase consumer offtake in a certain time period
  • 9. Trade Development (Promotions) Expenses Performance based Performance Non Performance Relationship based
  • 10. Performance Trade Expenses Expenses related to activities targeting a quantifiable sales objective Placement • Expenses related to • Installation of displays • Shelf space • POP / in store communications Bulk purchased • Trade incentives aimed to induce trade for bulk purchasing (Pack Free, Price off) for a certain time period Specific Target Incentives • Cost paid to trade to reach a specific target in a specific time period
  • 14. Non Performance Trade Expenses Expenses related to activities that are not performance related Cost paid to trade that are not directly performance related and has limited or no perceived value for the group
  • 15. Salesforce Promotions Sales Contests Incentive Schemes
  • 16. Promotion Evaluation Promotion Must have Clear Objectives
  • 17. Promotion Evaluation Pre & Post Promotional evaluation must be made for effective promotion spending Define Incremental Sales Promotional Scope (Channels, Duration) Incremental Returns Key Learnings (Pros & Cons)