Question

Select a company and prepare consumer promotion. Study and analyse competitors
consumer promotion.

Answer
Consumer promotion:
Promotional tools are tactics or activities company plan and execute to persuade consumers
to buy products or services. Consumer promotions are directed at consumer - both individuals
and organisations. The broad objectives of consumer promotion is to offer the consumer
additional benefits to attract consumer to buy the product.
Major tools of consumer promotion are:
Sampling:
Offering a sample of product or service is a tool to get customers to try it, with the goal of
paying for it next time. Sample tool is used to encourage consumers try a new product.
Generally, samples are provided free of charge. Samples are distributed in various ways such
as in-store distribution, direct sampling, response sampling, media sampling, and selective
sampling.
Coupons:
This involves offering price reduction or saving to customers on the purchase of a specific
product. The coupons may be mailed or enclosed along with other products, or inserted in a
magazine or newspaper advertisement. Types of coupons are instant redemption coupon,
bounce - back coupons, scanner delivered coupons, cross ruff coupons and response offer
coupons.
Premiums:
Premiums can promote sales and build brands. Examples of premiums are loyalty programs,
offering discounts or something free after a certain number of visits or purchases, and a bonus
with a purchase. For example, a bonus could either be extra volume of the same product or an
additional product. A toy hidden in a box of cereal is an example of a bonus premium. To

enhance building your brand, consider offering a bonus such as a t-shirt or hat with
companys name on it.
Contests and Sweepstakes:
Designing a sweepstakes or contest can promote product or services in a participatory
manner, but they can be tricky. There are legal considerations with sweepstakes, such as not
mandating a purchase in order to participate and in some states they may be banned
completely. Subjectively judging contest entries can lead to disgruntled participants. One can
mitigate potential issues by having multiple winners, such as first-through fifth-place winners
in age categories. Having children draw a picture of your product or business and then
displaying the entries is an example of a contest.
Refunds and rebates:
In refund method, some part of the price of an article is refunded to the customer on showing
proof of purchase. For example, refunding an amount of 5/- on showing the empty packet of
the product priced 100/-. In rebates method in order to clear the excess stock, products are
offered at some reduced price. For example, giving a rebate by a car manufacturer to the tune
of 12,000/- for a limited period of time.
Price offs:
It offers a temporary price reduction to consumer. Typically price offs marked on the
product packages and are in the range from 10 50 % off on regular price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a new
product in the market.
Bonus packs:
A bonus pack offers the consumer an extra amount of a product at the regular price by
providing extra units. This gives consumer more value for money.
Frequency or loyalty programme:
Loyalty programs are sales promotions designed to get repeat business. Loyalty programs
include things such as frequent flier programs, hotel programs, and shopping cards for
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grocery stores, drugstores, and restaurants. Sometimes point systems are used in conjunction
with loyalty programs. After accumulating so many miles or points, an organization might
provide a special incentive such as a free flight, free hotel room, or free sandwich. Many
loyalty programs, especially hotels and airlines, have partners to give consumers more ways
to accumulate and use miles and points.
Event marketing and event sponsorship:
Event marketing and event sponsorship have become popular in recent years as consumer
-oriented sales promotions. Event marketing takes place when the company supports a
specific event. In this companys physical presence is required such as a booth or display at
the event. Event sponsorship, a company develop sponsorship relationship event. The
company provides the financial support to the event and in return gets the right display a
brand name, an advertising message, or a logo.
Point - of purchase (POP) display:
Point of purchase (POP) displays is specially designed materials intended for placement in
retail stores. These displays allow products to be prominently presented, often in high traffic
areas, and thereby increase the probability the product will standout. POP displays come in
many styles, though the most popular are ones allowing a product to stand alone, such as in
the middle of a store aisle or sit at the end of an aisle (i.e., end-cap) where it will be exposed
to heavy customer traffic.
For channel partners, POP displays can result in significant sales increases compared to sales
levels in a normal shelf position. Also, many marketers will lower the per-unit cost of
products in the POP display as an incentive for retailers to agree to include the display in their
stores.

Westside
Company profile

Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's
largest and fastest growing chains of retail stores. The company has already established 85
Westside departmental stores measuring 8,000-34,000 sqft in floor space across 50 cities. The
Westside format offers a predominantly exclusive brands model across womens wear,
menswear,

kids

wear,

footwear, lingerie, cosmetics,

perfumes

and

handbags,

household

furniture

accessories.

Well

and

designed

interiors and prime locations

enhance

the

customers

shopping experience.
Trent

ventured

into

the

hypermarket business in 2004

with Star Bazaar, providing an assortment of products made available at the lowest prices,
aptly exemplifying its Helping you spend less motto. This store offers customers an array of
products that include staple foods, beverages, health & beauty products, consumer electronics
and household items at the most affordable prices. Star Bazaar also includes a large range of
fashionable in-house garments for men, women and children, available exclusively at the
store.
This store offers customers an eclectic array of products that include staple foods, beverages,
health and beauty products, vegetables, fruits, dairy products, consumer electronics and
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household items at the most affordable prices. Star Bazaar also includes a large range of
fashionable in-house garments for men, women and children, exclusively available at the
store.
In addition, Landmark, one of the largest books & music retail chains was acquired by Trent
in 1987. Landmark sparked the trend of stocking curios & other gift items. What separates
Landmark from other stores of its kind is the range and depth of its stock.
Westside has garnered numerous accolades

Balanced Scorecard Hall of Fame

India Brand Summit Brand Leadership Retail

IFA Visionary of the Year Award, 2002 Mrs. Simone N. Tata

Most Admired Large Format Retail Chain of the Year - Lycra Images Fashion Awards
2005

NDTV Profit Business Leadership Awards 2006 - Retail Category

Consumer Promotion techniques at Westside

1. Festive offers :
With this Diwali Delight offer from Westside if shopping bill for Rs.5000 and above then a
customer will get a gift voucher from them for Rs. 1000 for free. And if customer shops for
Rs. 2500 and above customer will get a free gift voucher worth Rs. 400. This is valid only if
customer purchases their in-house merchandise or brands only and not valid if customer
chose to buy other brands available at their store.
2. End of season sale :
End of Season sale or stock Clearance sale is been conducted at Westside. They are offering
surprising discounts upto 50% on all the men and women apparels. These offers were given
last year for limited period in the month of January and July.

3.

3. Gift Vouchers :
Westside offers Gift Vouchers of denomination ranging from Rs. 100 to Rs. 10000.
4. Westside loyalty program (Club west card program) :
An assured return-and-exchange policy reinforces customer confidence in the chain. Another
winning Westside idea is Club West, a customer loyalty program launched in May 2001. The
30,000-plus members of this club get rebates at restaurants and on holiday packages from the

Taj Group of Hotels, home delivery of alterations, and best of all, special shopping hours on
the first day of any discount sales event organized by the chain.

5. Contests :
Shop for Rs 1,000 at Westside, participate in the lucky draw and win the grand prize -a
complete holiday packages for two to Macau. You could also win holiday packages to
breathtaking beach destinations in India including Goa, Kovalam, Puri and Pondicherry.

6. Discounts:
Under this, the products are sold at a discounted price with percentage discounts on the
original price. This type of scheme is designed to boost up sales in off-season.
Example:

20 - 50% off on all the men formal shirts and trousers.

20 50 % off on all the women formals and casual outfits.

Competitor of Westside
Competitors of Westside are Pantaloons Fashion & Retail Limited is an Indian premium
clothing retail chain. The first Pantaloons store was launched in Gariahat, Kolkata in 1997.
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As of November 2013, there are 76 Pantaloons stores in 44 cities. Pantaloons were previously
controlled by the Future Group, but has now been taken over by Aditya Birla Nuvo Limited
(ABNL). According to the Brand Trust Report2014, a study conducted by Trust Research
Advisory, Pantaloons featured among 100 most trusted brands in India and Shoppers Stop is
an Indian retailing company promoted by the K Raheja Corp Group, started in the year 1991
with its first store in Andheri, Mumbai. Shoppers Stop Ltd has been awarded "the Hall of
Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail
Congress at Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. As of 2013,
Shoppers Stop has 73 stores in India.
Consumer Promotion techniques at Westside
1. Price-off offer:
Under this offer, products are sold at a price lower than the original price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a new
product in the market.
Example:

Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/T-shirt).

Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/T-shirt).

Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/T-shirt).

Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP:Rs.299/ Tshirt).

Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/T-shirt).

Buy 1 woman top and get Rs. 100/- off on the bottoms.

2. Discounts:
Under this, the products are sold at a discounted price with percentage discounts on the
original price. This type of scheme is designed to boost up sales in off-season.
Example:

30% off on all the men formal shirts and trousers.

30 % off on all the women formals and casual outfits

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3.

End of season sale:

End of Season sale or stock Clearance sale is been conducted at Pantaloon Factory Outlets.
They are offering surprising discounts as if you buy 2 any items of garments and you will get
3 more with your choice absolutely free. These offers are given as celebration of New Year.
4. Seasonal offers:
Pantaloon provides the customers with various discounts and price-off offers at the stores and
factory outlets on the seasons like winter and monsoon. This type of scheme is designed to
boost up sales in these seasons.
5. Festive offer:
Pantaloons have come up with festive offer during Diwali and Christmas by giving away gifts
for purchases that are made at the store for cheaper price. If you shop for Rs. 4500 you get a
trolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs.2400 and above you get a
lemon set, which is said to be imported, worth Rs. 649 for Rs. 99 only.
6. New Year offers:
Pantaloons offers gifts for purchases that are make at the store during the New Year for
cheaper price. If you shop for Rs. 3500 you get an Imported Designer Glass Set for Rs. 249
only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package for a couple on
an International cruise.
7. Discount Coupons:
Pantaloon offers 25% discount on its large range of apparels. The coupon is valid for limited
period. This coupon is valid for 25% off on any product purchased from
www.pantaloon.futurebazaar.com.
8. Gift Vouchers:
Pantaloons Fresh Fashion offers many Pantaloons vouchers ranging different denominations
like Rs100, Rs.250, Rs.1000 and Rs.2000. These Pantaloons vouchers are exchangeable with
the products by the customers at all the Pantaloons Showrooms in India. The vouchers are a
better option rather than gifts for the employees and customers as they are not bound for a
particular thing to accept. They are given free choice for choosing better gifts for themselves
by using vouchers.
9. Pantaloon loyalty program (Green card):
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Green Card is a passport to a whole new world of exclusive benefits and privileges to the
customers.

Instant discounts for every time you shop at Pantaloons.

Exclusive shopping days to get hold of latest merchandise.

Regular updates on collections and promos via catalogues, sms and email.

Special invites to the most happening events.

Extended exchange periods and complimentary drops for alterations.

Exclusive billing counters and much more.

Consumer promotion tools of Shoppers Stop

1. Price-off offer:
Under this offer, products are sold at a price lower than the original price. This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a new
product in the market.
Example:

Buy 2 men T-shirts at Rs. 799/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/Tshirt).

Buy 3 women T-shirts at Rs. 999/- (MRP: Rs.499/Tshirt).

2. Discounts:
10

Under this, the products are sold at a discounted price with percentage discounts on the
original price. This type of scheme is designed to boost up sales in off-season.
Example:

20% off on all the men formal shirts and trousers.

20 % off on all the women formals and casual outfits.

3. End of season sale:

End of Season sale or stock Clearance sale is been conducted at Shoppers stop. They are
offering surprising discounts upto 50% on all the men and women apparels. These offers
were given last year for limited period in the month of September.
4. Seasonal offers:
Shoppers stop provides the customers with various discounts and price-off offers at the
stores on the seasons like winter and monsoon. This type of scheme is designed to boost up
sales in these seasons. Different offers are provided by the stores during
5. Festive offers:
Shoppers stop have come up with festive offer during Diwali and Christmas by giving away
gifts for purchases that are made at the store for cheaper price or free. In purchase of men
apparel worth Rs. 6000/-, the customers are entitled to get a Polo bag worth Rs. 2000/absolutely free these periods from June to January.
6. Gift Vouchers:
Shoppers Stop offer Gift Vouchers of denomination ranging from Rs. 250 to Rs.5000.
7. Republic Day offer:
Shoppers stop conducted 3 Day Surprise offer on the occasion of Republic Day, giving flat
20 percent discount coupons on purchase of goods worth Rs. 3000/-, which can be redeemed
on the next purchase.
8. Contests:
Shoppers Stop has announced a 101-day Shopping Bonanza to pull in customers into the
stores. Lucky draw winners of the contest will get to see one of the seven wonders of the
world and two lucky couples who get the grand prize will be treated to a round-trip which
will cover all the seven wonders of the world.
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9. Shoppers stop loyalty program (First Citizen Citibank credit card) :

As s First Citizen Credit card member, customer gets the benefit of the Shoppers Stop
loyalty program, First Citizen. The First Citizen membership entitles customer to exclusive
privileges such as product previews, priority billing and other special benefits. Add to this,
the fabulous experience of shopping at the premier Shoppers stop outlets across the country.
10. Exchange offer:
Under this offer, customer has to bring in their old salwar kameez and take away a new one
with discounted price.

Analysis of Westside with respect to Pantaloon and Shoppers Stop

Consumer
promotion
End of season
Festive promotion
Loyalty card
Programme
Special Promotion
Media used

Promotion type

Westside

Pantaloons

Shopper Stop

Yes
Yes
Yes

Yes
Yes
Yes

Yes
Yes
Yes

No
Print, electronic,

Yes (exchange offer)

Hoardings, print,

Yes (exchange offer)

Print, electronic,

hoardings, In-store

electronic (SMS, E-

hoardings, In-store

mail), POP In-store

media

Gift vouchers,

media
Price off, free gifts,

Discounts, gift

discount, contest,

exchange offer,

vouchers, free gifts,

End of season

Festive offers, End of

exchange offer, End

season sale, Loyalty

of season sale,

program
Loyalty program
From the above table, it is clear that all three stores engage in end of season sale. This
reinforces the fact that seasonality affects apparel sector and hence it becomes critical for a
retailer to clear off the stocks at the end of season, otherwise, retailer may have to incur
substantial inventory carrying costs, allocate scarce shelf space and out of fashion apparels
maybe worthless. Thus stock clearance seems to be very important objective for apparel
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retailer in using end of season sale wherein discount given is upto 50% of the MRP
(Maximum retail price).
In terms of type of consumer sales promotions, almost everyone used discount, coupon
programmes and lucky draws, contests, gift, buy one get one free type of promotions.
Pantaloon and Shoppers Stop uses exchange offer.
Westside can also introduce special promotion of exchange offer like Pantaloons Retail ltd.
and Shoppers Stop.

Bibliography

http://www.knowthis.com/types-of-sales-promotion/point-of-purchase-displays
http://catalog.flatworldknowledge.com/bookhub/reader/5229?e=e613.fwk-133234-

ch11_s98
http://smallbusiness.chron.com/consumer-promotional-tools-61400.html
Sale and Distribution management by Krishna K Havaldar and Vasant M Cavale

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