CH INSTITUTE OF MANAGEMENT AND COMMERCE
Sales Promotion tools used by
Pantaloon Retail (India) Limited
Reasons for Sales Promotions
Popularity of Sales Promotions
Sales Promotion techniques at Pantaloon Retail (I) Ltd.
Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes Sales Promotion Strategies
There are three types of sales promotion strategies: Push, Pull, or a combination of the two. A push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts. The company promotes the product through a reseller who in turn promotes it to yet another reseller or the final consumer. Trade-promotion objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a brand in advertising, and/or push a brand to final consumers. Typical tactics employed in push strategy are: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays, and premiums.
A pull strategy attempts to get consumers to "pull" the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. This strategy is often employed if distributors are reluctant to carry a product because it gets as many consumers as possible to go to retail outlets and request the product, thus pulling it through the channel. Consumer-promotion objectives are to entice consumers to try a new product, attract customers away from competitors’ products, get consumers to "load up" on a mature product, hold & reward loyal customers, and build consumer relationships. Typical tactics employed in pull strategy are: samples, coupons, cash refunds and rebates, premiums, advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP) displays. Reasons for Sales Promotions
This could be a way of monitoring the performance of product management. Since sales promotion can possibly provide immediate impact on consumer sales, it is not unusual to use these strategies to attain their sales objectives. *
Companies have to cope with pressure on sales margins which they can achieve through paying closer attention to cost-effective sales volume. Since the results of using sales promotional techniques can be determined accurately, sales volumes can be easily predicted. *
More importantly, sales promotions are not only effective in attaining short-term sales; they are also more cost-effective compared to other integrated marketing communications tools such as advertising. The progressive fragmentation of audiences and the increase in media costs have tipped the balance in favor of sales promotion techniques which are more likely to deliver demonstrable results. Popularity of Sales Promotions
The reason sales promotions are gaining popularity is due to the fact that product and sales management are very confident in their ability to handle the techniques of sales promotion. Other forms of...
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