Business Standard- The Strategist

24th June 2013

Rohit Nautiyal

PROMOTION

Activities performed by the companies

that involves discriminating information

about product, product line, brand or

company.

Past- 10% of marketers’ budget

Present- 35-45%

Typically consumer sales promotions include

discounts, contests, lucky draws, quantity gifts,

financing at low interests, surprise gifts.

Sometimes marketers have tried combination of

these activities to lure customers into making

instant purchase decisions.

The project at Noida extension, a new township coming up near Delhi, next to the already developed Noida-Ghaziabad border.

While opening bookings for the township, the realty firms GAURSONS & SAVIOUR BUILDERS decided to gove away 60

Hyundai i10 Cars as a part of lucky draw. To give a fair chance to those who make bookings, a draw is conducted at the end of every

10th booking.

(APRIL TO JUNE)

Company claims that more than 400 bookings are done with 23 cars gifted to the customers so far.

“Hungry Kya”- Daily combos

“Treat of the week”- Happy Meal

Torque Auto- Skoda dealer promised a free Fabia

hatchback to customers who bought Sedan. (700

bookings- 5 days!!)

For every pack of Marie biscuits,

free glass bowl was given.

This led to significant increase in sales.

CONCLUSIONIn sum, sales promotions may look like the first option

to take when you need to perk up sales but

research has proven it is a strategy fraught with

danger. First, when you offer deals and discounts

too often you may end up alienating the loyal

customer. She will think there's something wrong

with the brand. Worse, you may induce shoppers

to wait for the next deal - bad news for your

round-the-year business.

The bottom line is simple:

Like so many other potentially addictive

behaviours, sales promotions can be

healthy only in moderation.