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Salespromotion - Britannia and Nestle

It is about the sales promotion of Britannia and Nestle

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Salespromotion - Britannia and Nestle

  3. 3. Price discounts or price-off deals  Price deals are probably the most commonly used promotional techniques.  A price deal for a customer means a reduction in the price of the promoted product and the consumer saves money on purchase.  Price discounts are communicated through POP advertising, window displays, sales people, advertising in newspapers, magazines and TV ads 5/31/2016 3
  4. 4. CONT..  The main advantage of this tool is that it has a very Strong consumer response  Such discounts offer immediate value and strong consumer response  The Flexibility and convenience of implementation is another advantage. 5/31/2016 4
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  6. 6. Price pack deals  Price pack deals are also called value packs.  They can take any of the two forms: one is bonus pack and banded pack.  In case of a bonus pack, an additional quantity of the same pr oduct is offered free when the standard pack size of the product is purchased at the regular price.  Nestle offers 10% extra free. 200gms+20gms 5/31/2016 6
  7. 7. Cont…  Banded pack´ when 2 or more units of the products are sold at a reduced price compared to the regular price.  Another variation of this technique is buy 1 get 1 free´ or some similar offer, it could be same for less´ or more for the same.  The main advantage of this tool is that extra product may encourage increased usage and help sustain the habit. 5/31/2016 7
  8. 8. Sampling  Getting consumers to simply try a brand can have a powerful effect on future decision-making. Sampling is a sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis with little or no risk.  Sampling is particularly useful for new products, but should not be reserved for new products alone.  It can be used successfully for established brands with weak market share in specific geographic areas. 5/31/2016 8
  9. 9. Techniques used in sampling:  In-store sampling  Door-to-Door sampling  Newspaper sampling  On-package sampling  Mobile sampling 5/31/2016 9
  10. 10. Trial offers  Trial offers have the same goal as sampling to induce consumer trial use of a brand- but they are used for more expensive items.  Ex: exercise equipment, appliances, consumer electronics, etc. the expense to the firm of course can be formidable.  Segments chosen for this sales promotion technique must have high sales potential. 5/31/2016 10
  11. 11. Advertising specialties  Popular advertising specialties are caps, t-shirts, toys, mugs, mouse pads, pens, calendars, etc.  Advertising specialties have 3 key elements:  A message placed on a useful icon, and given to consumers with no obligation. - Buy any Nestle chocolate and get tattoo free. 5/31/2016 11
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  14. 14. Event sponsorship  When a firm sponsor s or co-sponsor s an event such as a rock concert, a cricket match, etc. the brand featured in an event immediately gains credibility with the event audience.  The audience attending an event already has a positive attitude and affinity for the contest ± they choose to attend.  When this audience encounter s a brand in this very favorable reception environment, the brand benefits from the already favorable audience attitude. 5/31/2016 14
  15. 15. Internet promotions  They are the most recent form of sales promotions. They are promotions that are done via the Internet. It is becoming increasingly popular because of the large use of Internet. 5/31/2016 15
  16. 16. Sales promoton fo nestle  One of the most widely known tunes is the Nescafe tune. It was one of the best advertising campaigns and was launched at least 2 decades back. However, that campaign brought Nescafe strongly in the market.  On the other hand, Nestlé's brand was pushed by the excellent product quality of Maggi and the witty and innovative campaigns of Maggi. Where Nescafe focuses on value and the good things in life, Maggi focuses on moments you had with your Maggi. The recent campaign was completely focused on your Maggi story, where people had to come out with various innovative ways that they had their Maggi. 5/31/2016 16
  17. 17.  Promotions for other products too is done smartly. Kitkat focuses on “Take a break” and has done some good marketing for the same. Kitkats website too is very innoative and shows nothing but asks the visitor to take a break and have a Kitkat. The major push expected of a FMCG company is in sales promotions at the ground level. This is where Nestle really rocks. Nestle focuses on its strength which is Maggi, Nescafe and Kitkat which are the most promoted brands in the market on ground level.  Besides this, Nestle regularly uses TVC’s and ATL marketing. It is also present online through some smart creative. Overall, Nestle is a brand which has strong products as well as strong marketing, and hence the brand has a very high brand recall value. 5/31/2016 17
  18. 18. Sales Promotion of nescafe  They promote the product heavily by implementing different schemes. Nescafe ’ is promoted by giving trade-discounts to distributors, profit-margins to whole sellers and retailers by sampling and promotion actives at schools, colleges etc. Nestlé sponsored “1st P.T.V. world awards show” at national level. and an "Arts Exhibition” in a local institute “The Institute of Fine-Arts, Peshawar” last week. They arranged stalls in all the women colleges of Peshawar. 5/31/2016 18
  19. 19. BRITANNIA SALES PROMOTION  Promotion is the one of the major aspects in marketing strategies.  Britannia uses promotional activities such as advertising, sales promotions and public relations etc.  It also helps in increasing the brand awareness.  Biscuits are available to consumers, even in the most remote places and in the smallest of villages with a population of just 1500. 5/31/2016 19
  20. 20. BRITANNIA SALES PROMOTION • Sales promotion-Small pack of 50-50 with Good day, free gift pack festive season, rural marketing fair. • Been a sponsor for many cricketers on Bats. • “Events-Britannia Khao World Cup Jao” in 1999 promotion further fortified the affinity consumers had with ‘Brand Britannia’. 5/31/2016 20
  21. 21. BRITANNIA SALES PROMOTION • The Lagaan Match was voted India’s most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India’s most successful product launch 5/31/2016 21
  22. 22. BRITANNIA SALES PROMOTION • Britannia Industries Limited (Britannia) spent 16 per cent more towards Advertisement and Sales Promotion (ASP) in Q12016 • Britannia has been known to be skewed towards urban markets. • Its competitor Parle (with Parle G and Monaco) is more associated with rural markets. • To change this, Berry decided to strengthen the rural presence. 5/31/2016 22
  23. 23. BRITANNIA SALES PROMOTION • In November 2012, BIL hired Salman Khan to endorse its Tiger range of products. • The popular Bollywood actor promotes the core values of the Tiger brand range because of his own dashing style and personality. • Britannia has high advertising spends for products like Good day and Bourbon which are almost stars for the Britannia brand. 5/31/2016 23
  24. 24. BRITANNIA SALES PROMOTION • Relies more on pull than push • Has amazing brand equity due to presence in the market for last many decades • Concentrates on promoting biscuits more than any other product 5/31/2016 24
  25. 25. BRITANNIA DISTRIBUTION • “BIL set up a hub-and-spoke rural distribution model and within a year increased our rural reach by over 8,000 outlets. Today, rural is growing faster than urban.“ • Britannia's rural share, especially in the Hindi belt (where Parle has a distinct edge), is one-fifth of Parle's. • Britannia's stronghold, has seen the launch of a lot of innovative products such as Goodday Chunkies, Nutrichoice Heavens, Chocolush and Rum & Raisin Cakes, for Premium segment. 5/31/2016 25
  26. 26. BRITANNIA DISTRIBUTION • Britannia follows the FMCG channel of distribution wherein it appoints distributors at select locations • These distributors are then responsible for handling dealers and retail showrooms • Modern trade channels like Big bazaar and D mart as well as others are handled directly by the company. • The distribution in urban areas is fantastic with Britannia being present almost everywhere. 5/31/2016 26
  27. 27. THANK YOU!