Sales Promotion Techniques
Sales Promotion Techniques
Sales Promotion Techniques
ON
FOR
INTRODUCTION
The Axe deodorant was first launched in the year 1983. It has been there in the market for
the last 26 years and is currently the best-selling brand of Unilever. It has earned an iconic
status in most of the markets it has entered. The story is no different for India.
Axe deodorant was launched in India during 1999. It was launched as a high price product
and initially the promotion was kept low. Axe at that time was the leading men's deodorant
brand in Europe and was popular in India in the Grey market. HLL had the brands Denim
and Rexona was ruling the market. Axe was priced at a premium above the Denim brand
which was positioned as a male deodorant brand.
At the beginning the product promotion was not fine tuned according to the Indian market
andthe same advertisements that ran in Europe were used for the Indian audience as well.
Later thepromotion was adapted according to the Indian sensibilities. Axe in 2002 was
having a marketshare of over 35% and soon HLL phased out Denim brand to concentrate on
this star performer.
Axe markets itself as the naughtiest brand in the Indian market. The brand is targeted at male
aged 16-25. All its campaigns revolve round this central theme of Seduction where Girl
makes the first move. This has a lot of subliminal implications. The brand assumes that Men
like to be seduced. That feeling of being seduced gives a big boost of self confidence to a
man. Although many brands take this proposition, Axe just made it perfect. Along with
these, the brand also ensured that customers are constantly engaged with new
fragrances and campaigns. In 2005, Axe had a high profile launch of its new fragrance
CLICK and before that there was Axe Land campaign and followed by Axe-Academy then
Axe Voodoo and Phenomenon. In the recent years, it has launched call me campaign.
✔ Consumer sales promotion is directed to the end user of the products and includes
various tools like price discounts, coupons, sampling, rebates, contests, sweepstakes,
point-of-purchase materials, etc.
✔ Trade sales promotion is directed to resellers like distributors, wholesalers or
retailers to motivate them to provide special support for the organizations product and
to market it aggressively. It includes tools like allowances, sales contests, price deals,
trade shows, training, etc.
✔ Coupons: These coupons can be presented to the retailer while buying the product.
The holder of the coupon gets the product at a discount. The AXE DEO also used this
tool for increasing their sales.
1. Trade Promotions
➢ Trade advertising is directed at wholesalers and retailers and represents 50% of the total
promotional spending.
➢ Four goals of a trade promotion are:
Stimulate in-store merchandising or other trade support,
Manipulate levels of inventory held by wholesalers and retailers,
Expand product distribution to new areas of the country or new classes of trade,
Create a high level of excitement about the product among those responsible for its
sale.
➢ Trade Promotions Trade Shows & Exhibits Allow Product Demonstrations, Provide
Information, & Answer Questions. Retailer (Dealer) Kits Materials That Help Reps
Make Sales Calls Are Often Designed as Kits. Contain Detailed Product Specs, How-
to-Do it Display, etc. Incentives Advertisers Can Develop Contests & incentives to
Motivate Resellers. Occasional Use Only is Effective.
➢ Trade Incentives and Deals Incentive Programs i.e. Used When Introducing A New
Product. Types Include Bonuses & Dealer Loadings Special Trade Promotional
Circumstances. Trade Deals Most Important Reseller Sales Promo Technique. Types
Include Buying & Advertising Allowances
✔ On-line couponing: Coupons are available online. Consumers print them out and
take them to the store. The axe deo can use this sales promotion technique because in
the present scenario the use of computer increasing day by day.
✔ Mobile couponing: Coupons are available on a mobile phone. Consumers show
the offer on a mobile phone to a salesperson for redemption. This technique is also
could be very effective.
✔ Online interactive promotion game: Consumers play an interactive game
associated with the promoted product. This tool can also effective for the axe deo.
✔ Trading Stamps: In case of some specific products trading stamps are distributed
among the customers according to the value of their purchase. The customers are
required to collect these stamps of sufficient value within a particular period in order
to avail of some benefits. This tool induces customers to buy that product more
frequently to collect the stamps of required value.
✔ Free trials: Free trails must also be used by the firm to increase their sales.
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.