Promotion Strategy of Retailing

Group 5

Retail Promotion
Retail promotion includes any communication by a retailer that informs, persuades and/ or reminds the target market or the prospective segment about any aspect of that firm.

Why Retail Promotion?

Increasing store traffic by encouraging new shoppers to visit the store Informing customers about goods and services or company attributes Increasing sale of a given product or category Developing the store image or the retail brand Developing demand for private brands

Elements of the Promotional Mix

Impersonal
Advertising Sales promotion Store atmosphere

Personal

Personal selling E-mail marketing

Unpaid

Paid

Publicity

Word of mouth

Comparison of Promotion methods

Control Paid Impersonal Advertising Sales Promotion Sales Atmosphere Paid Personal Personal Selling Unpaid Impersonal Publicity Unpaid Personal Word-of-mouth  High  High to Moderate   Moderate Low Low          Flexibility Credibility Cost

Promotions by Westside

 Westside does brand building through advertisements in the media, but they emphasize more on their inhouse promotions, which peak during the three main festive seasons: summer, Diwali and Christmas. A sum of Rs. 20 crore had been allocated for advertising and promotions. The promotions are mostly theme based, with matching decorations, live brands, & other attractions. So last year s Westside show had a Hawaiian theme and this year the chain has gone the Wild West way. This is followed by a heavy media burst across print, outdoors, cinema theatres and Fashion TV. Trent has signed cricketer Yuvraj Singh as the brand ambassador for the Westside chain for three years

Advertising

Advertising
Any paid form of non-personal presentation of ideas, goods and services by an identified sponsor Key aspects  Paid form  Non-personal presentation  Identified sponsor

Objectives
To promote a new product To support the personal selling programme To reach out to people not accessible to salesmen To enter a new market for attracting customers To manage competition in the market by stimulating sales To enhance the goodwill of the retail organization To improve dealer relations To warn the public against imitation for the retailer's product

Characteristics
Advantages  Attracts a large audience  Low cost per contact  Many alternative media are available  Control over message content; message can be standardized  Message study possible by target market  Editorial content surrounds ad  Self-service operations possible
Disadvantages Standardized messages lack flexibility Some media require large investments Geographic flexibility limited Some media require long lead time Some media have high throwaway rate Some media limit the ability to provide detailed information

Raymonds: The Complete Man

 Promotional strategy has a salient role in the building up of a store s image. In all cases, the product and its utility is important, but the way the product is cultivated in the minds of the consumers is also equally important. In retail, it is not only the product but also the entire retail environment along with its peripherals such as store ambience, packaging, promotions, how sales people communicate about the shopping experience which together go to build a brand image for the retail store. For Raymonds, the catch-line of The Complete Man advertised extensively on electronic and print media got reflected not only in the products but also in retail environment in which it is offered.

Benefits of retail Advertisements for Customers

It helps in creating awareness among the customers about the existence, prices and availability of products at different locations for the satisfaction of their wants It educates customers about new products and their diverse uses It increases the utility of existing products It encourages the manufacturers to improve the quality of the products through R&D

Steps in Retail Advertisement Campaigns

Selecting Advertisement Objectives Advertising budget for a campaign Designing Advertising Message Selection of Media Running an ad campaign Measuring Advertising effectiveness

Classification based on target customers

Types of Advertising Persuasive Advertising Informative Advertising Corporate Advertising Financial Advertising Classified Advertising

Classification by content and payment

Differences between retailer and Manufacturer Advertising Strategies

Retailers usually have more geographically concentrated target markets than manufacturers Many retailers are unable to utilize national media as readily as manufacturers. Only largest retail chains and franchises can advertise on national TV programs Many retailers stress prices in ads, whereas manufacturers usually emphasize key product attributes Retailers often display several different products in one ad, whereas manufacturers tend to minimize the number of products mentioned in a single ad

Sales Promotion

Sales promotion
Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness

Objectives
    Increasing short-term sales volume Maintaining customer loyalty Emphasizing novelty Complementing other promotion tools

Characteristics
Advantages Disadvantages

     

Eye-catching appeal Distinctive themes Added customer value Draws customer traffic Maintains loyalty Increases impulse purchases  Fun for customers

Difficult to terminate Possible damage to retailer s image More stress on frivolous selling points Short-term effects only Used as a supplement

Types of Sales Promotion

 Displays  Contests  Sweepstakes  Coupons  Frequent shopper  Prizes  Samples  Demonstrations  Referral gifts  Other limited-time

programs

selling efforts

Steps in designing Retail Sales Promotion

Set Goals Analyze benefits Design the offer Identify the sources for promotion Design the response and follow up

Wills Lifestyle: Gift Vouchers

 ITC s Wills Lifestyle, a nationwide retail chain of exclusive speciality stores, presented Occasions , a range of exclusive gift vouchers. These gift vouchers are redeemable against a tempting range of Wills classic formal wear, Wills sport relaxed wear, Wills club life evening wear and fashion accessories. Salient features of the Occasion exclusive gift vouchers Presents the perfect gift for any occasion Comes with a message card that can be personalized A flexible Gifting option in a wide range of denominations: Rs 250; Rs 500; Rs 2000; Rs 5000; Rs 10000 Gives the recipients the freedom to choose a gift of their choice available and redeemable at all ITC s Wills Lifestyle stores A tempting choice of formal, relaxed, and evening wear for men and women

Personal Selling

Personal Selling
Personal selling involves two-way communication with prospects and customers that allows the salesperson to address the special needs of the customer

Objectives
Persuade customers to purchase Stimulate sales of impulse items or products related to a consumer s basic purchases Complete transactions with customers Provide feedback and information to the decision-makers Provide adequate level of customer services and maintain customer satisfaction Create awareness of items also marketed through the Web, mail and telemarketing

Personal Selling Characteristics

Advantages  Message can be adapted  Many ways to meet customer needs  High attention span  Less waste  Better response  Immediate feedback Disadvantages Limited number of customers at one time High costs Doesn t get customer in store Self-service discouraged Negative attitudes toward salespeople

Types of Personal Selling

Order-taking salesperson Order-getting salesperson

Typical Personal Selling Functions

Effective Personal Selling tips

Always maintain a positive attitude and be enthusiastic Always maintain good eye contact, even when under fire Always listen closely to an objection Always acknowledge the objection and then give point of view Always remember that objections are a natural part of the sales process

Nike: Personal Selling

 Nike utilizes a personal selling technique in all of their retail stores. The sales associates in these stores has direct contact and interaction with the buyers of Nike merchandise. They are the individuals that communicate directly with the consumers who are interested in Nike products. They sales men and women must be able to help in the process of a successful sale. They are suppose to be knowledgeable of the brand and should be trained in asking customers the right questions in order to find out what they are looking for. To make sure this is done Nike will often send Nike representatives to retail stores that sell their sneakers to give little presentations to keep the sales associates up to date on the merchandise and the technology behind them. I agree with this because sometimes people that work at the store don't really know what they selling and need to b reminded.

Public Relations
Communication that fosters a favorable image for the retailer among its public It may be
 Non-personal or personal  Paid or nonpaid  Sponsor-controlled or not controlled

Publicity: Non-personal form of public relations whereby messages are transmitted by mass media, The time or space provided by the media is not paid for, and there is no identified commercial sponsor

Objectives
 Increase awareness of the retailer and its strategy mix  Maintain or improve the company image  Show the retailer as a contributor to the public s quality of life  Demonstrate innovativeness  Present a favorable message in a highly believable manner  Minimize total promotion costs

Characteristics
Advantages  Image can be presented or enhanced  More credible source  No costs for message s time or space  Mass audience addressed  Carryover effects possible  People pay more attention than to clearly identified ads Disadvantages Some retailers do not believe in spending on image-related communication Little control over publicity message More suitable for short run Costs for PR staff, planning activities and events

Planning a Retail Promotional Strategy