ASSIGNMENT OF SALES AND PROMOTION
SUBMITTED TO:Mr. ABHISHEK DUTTA
SUBMITTED SHIKHAR VERMA RT1902-A26 MBA 3
rd
SEM.
ABOUT COKE INDIA
Coca-Cola, the corporation nourishing the global g lobal community with the world¶s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the t he Company took over o ver ownership of the nation¶s top soft-drink brand and bottling bott ling network. It¶s no wonder our brands have assumed an iconic status in the minds of the world¶s consumers. A Healthy Growth to The Indian Economy Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing c hannels. Coca-Cola India is among the country¶s co untry¶s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations. A Pure Commitment to The Indian Ind ian Economy The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutr ition ition needs. It has also been instrumental in giving an exponential e xponential growth to the country¶s co untry¶s job job listings.
Creating Enormous Job Opportunities With virtually all the goods and services required requ ired to produce and market Coca-Cola Coca-Co la being made in India, the business system of the Company Co mpany directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 125,0 00 people in related industries through its vast procurement, supply, and distribution system. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with
another 25 being owned by franchisees. That apart, a network of 21 contract packers manufacture a range o f products for the Company. On the distribution front, 10-tonne trucks ± o pen bay three-wheelers that can navigate the narrow alleyways of Indian cities ± constantly keep our brands available in every nook and corner of the country¶s remotest areas.
WHAT
IS SALES PROMOTION
Sales promotion is any initiative undertaken by a n organisation to promote an increase in sales, usage or trial of a product pro duct or service (i.e. initiatives that are not covered by t he other elements of the marketing communications or promotions mix). Sales promotions are varied. Often they are original and creative, and hence a comprehensive list of all available techniques is virtually impossible (since original sales promotions are launched daily!). Here are some examples of popular sales promotions activities: (a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating se lf-liquidating promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two for $1, you are still in in profit - especially if there is a corresponding increase in sales. This is known as a PREMIUM sales promotion tactic. tact ic. (b) Customer Relationship Management (CRM) incentives such as bonus points or money off coupons. There are many examples of CRM, from banks to supermarkets. (c) New media - Websites and mobile phones that support a sales sa les promotion. For example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer would enter the code co de into a dynamic website to see if they had won a prize. Consumers Co nsumers could also text codes via their mobile phones pho nes to the same effect. (d) Merchandising additions such as dump bins, point-of-sale materials and product demonstrations. (e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich purchase. Once the card was full the consumer was given a free sandwich. (f) Discounted prices e.g. Budget airline airline such as EasyJet E asyJet and Ryanair, e-mail their customers with the latest low-price deals once new flights are released, or additional destinations are announced. (g) Joint promotions between brands owned by a company, or with another company's brands. For example fast food restaurants often run sales pro motions where toys, relating to a specific movie release, are given away with promoted p romoted meals.
(h) Free samples (aka. sampling) e.g. tastin t asting g of food foo d and drink at sampling points in supermarkets. For example Red Bull (a caffeinated ca ffeinated fizzy drink) was given away to potential consumers at supermarkets, in high streets and at petrol stations (by a promotions team). (i) Vouchers and coupons, often seen in newspapers and magazines, on packs. (j) Competitions and prize draws , in newspapers, magazines, on the TV and radio, on The Internet, and on packs. (k) Cause-related and fair-trade products that raise money for charities, and the less well off farmers and producers, are becoming more popular. (l) Finance deals - for example, 0% finance over 3 years on selected vehicles. Many of the examples above are focused upon consumers. Don't forget that promotions can be aimed at wholesales and distributors as well. These are known as Trade Sales Promotions . Examples here might include joint promotions pro motions between a manufacturer and a distributor, sales sales promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales people and their retail clients
TECHNIQUES FOLLOWED BY COKE INDIA
The techniques followed by coke India isBuy-One-Get-One-Free (BOGOF) because during previous days coke followed the strategy that Buy two 2L bottle of coke and get one 1L bottle free. Apafrt from this coke followed the strategy of NEW MEDIA in which a special code is at the back of the cap and which u have to message to a specific number and then there will be a lucky draw out of it. Then coke also followed the system of providing vouchers and couponsin which the person has to collect certain number of coupans and present it to shopkeeper in order to get the bottle of the coke free. Coke is also following the Joint promotionsegcoke is having a promotion with dominos where u buy the DOMINOS PIZZA P IZZA then the consumer gets the coke co ke 500ml bottle free. MOBILE MARKETING through this company usually provide offer to the customer and sending sms through the collected database. dat abase.
REASONS FOR SUCH SALES PROMOTION BEING OFFERED The various reasons for which the sales pro motion being offered are as follows:
It helps to increase sales in a competitive co mpetitive market and thus, increases profits; It helps to introduce new products in the market by drawing the attention of potential customers;
Existing stocks can be quickly disposed o ff; It stabilizes sales volume by keeping its customers with them. In the age of competition it is quite much possible that a customer may change his/her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers.
Consumer gets the product at a cheaper rate;
The consumer gets all information about the quality, features and uses of different products;
Certain schemes creates confidence in the mind of customers about the quality of goods; and
It helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.
ALTERNATE PROMOTION TOOLS USED Various alternate tools that must be used by the t he dove are as foll fo llows: ows:
Scratch and win offer: To induce the customer to buy a particular product µscratch and win¶ scheme is also offered. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there. In this way customers may get some item free as mentioned on the marked area or may avail of price-off, or sometimes visit different places on special tour arranged by the manufacturers.
Competitions and Prizes: In order to boost up sales in the short run certain competitions must also be organized by the company.Itensure usage amongst first time users.
Free trials: Free trails must also be used by the firm to increase their sales.
IMPACT OF SALES PROMOTION TOOLS BEING USED The impact of sales promotion tools can be understand by explaning the t he following points:
To introduce new products
To attract new customers and retain ret ain the existing ones
To maintain sales of seasonal products
To meet the challenge of o f competition.
Let us learn about these t hese in details.
To introduce new products : Have you ever heard about distribution of free samples.
Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. co nsumption.
To attract new customers and retain the existing ones : Sales promotion measures help
to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product.
To maintain sales of seasonal products : There are some products like air conditioner,
fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc.,which are used only in particular seasons. To maintain the sale of these types of products normally the manufactures and dealers give off-season discount. For example, you can buy air conditioner in winter at a reduced price. Similarly you may get discount on winter clothes during summer.
To meet the challenge of competition : Today¶s business faces competition all the
time.New products frequently come to the market and at the same time improvement also takes place. So sales promotion measures have become essential to retain the market share of the seller or producer in the product-market.
CONCLUSION From the above discussion we may easily conclude that sales promotion play a key role in increasing the sales of a product. Day by day the popularity of the sales promotion is going on increasing and the companies are using it tremendously for increasing their sales. Its popularity is increasing because of its ability to produce immediate sales, increased customer preference for deals and declining real product differentiation. While the significance of sales promotion is increasing, its excessive use is determental to the growth of a brand. Too much sales promotion can erode brand equity and make people deal prone. Thus, the companies must use the various techniques of sales promotion effectively in order to increase their sales.