Analysis Of Sales Promotion Marketing Essay

 

Successful promotion campaigns dont happen by chance. To realize goals, promotional products programs must be carefully planned, taking into consideration the audience, budget and, of course, the ultimate result to be gained.

1. Define a specific objective.

Whether the goal is to increase traffic at a trade show exhibit or to boost sales with current clients, the first step in any campaign is to clarify the purpose of the program.

2. Determine a workable distribution plan to a targeted audience.

Distribution of a promotional product is as important as the item itself. Research shows that a carefully executed distribution plan significantly increases the effectiveness of promotional products. For example, a pre-show mailing to a select audience delivers more trade show traffic and qualified leads than simply distributing items to passerby at the show.

3. Create a central theme.

Linking a recognizable logo and color to all aspects of a campaign, from promotional products to sales sheets to product packaging, helps create an instantly recognizable image.

4. Develop a message to support the theme.

Supporting a campaign's theme with a message helps to solidify a company's name, service or products in the target audience's mind. For instance, to promote its services to small businesses, a bank created the theme "Are you tired of being treated like a small fish?" and sent fish-related products to its prospects along with promotional literature.

5. Select a promotional product that bears a natural relationship to your profession or communications theme.

A good example is a company that developed a magic motif for its conference at Disney World. Attendees received magic-related products to tie in with the theme "Experience the magic at Disney."

6. Don't pick an item based solely on uniqueness, price or perceived value.

Don't fall prey to the latest trends or fads. The most effective promotional products are used in a cohesive, well-planned campaign

Promotion: This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company

Sales promotion is one of the four aspects of promotional mix.

Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing communications are employed for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include:

coupons

discounts and sales, including Indonesia food store Sale

contests

point of purchase displays

rebates

free samples (in the case of food items)

· gifts and incentive items

· free travel, such as free flights

Sales promotions can be directed at either the customer, and / or distribution channel members (such as retailers).

Sales promotions targeted at the consumer are called consumer sales promotions.

Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.

Consumer promotions are targeted towards end consumers. Tools include samples, coupons, cash refunds, price packs, premiums, advertising specialties, patronage rewards, point-of-purchase displays and demonstrations, and contests, sweepstakes and games.

Trade promotion is directed to the retailer and/or wholesaler. The point of a trade promotion is to persuade resellers to carry a brand, give it shelf space, promote and push it. Tools used for consumer promotions can also be used as trade promotions. In addition, manufacturers will do things like offering discounts off list price, advertising allowances and display allowances as trade promotion tools.

They try to promote itby :

-stockholding bonus

-sales target

-bonus for performance

-retailer contests.

-special rebate for above target performance.

What sales Promotions would u recommend for :

1.Tv Media service like Media TV

CONSUMERS

consumer coupons

consumer contests

point of purchase displays

gifts

incentive items

free travel, such as free flights

-sales target

-bonus for performance

-retailer contests.

Company Proposing Launch of new car (BMW)

CONSUMERS

consumer contests

point of purchase displays

gifts

incentive items

free travel, such as free flights

RESELLERS

-stockholding bonus

-sales target

-bonus for performance

-retailer contests.

Company launching coffee makers,

consumer coupons

consumer volume discounts and sales,

consumer contests

point of purchase displays

free samples

gifts

-stockholding bonus

-sales target

-bonus for performance

-retailer contests.

-special rebate for above target performance.

Consumer durable product like Air conditioner, where dealer support is necessary to achieve target, they can try to do as follows :

consumer contests

point of purchase displays

free samples

gifts

incentive items

-stockholding bonus

-sales target

-bonus for performance

-retailer contests.

-special rebate for above target performance.

Bus way trans Jakarta ,

consumer coupons

consumer contests

incentive items

free monthly cards,

Lux Soaps, A detergent facing Heavy Competition.

CONSUMERS

consumer coupons

consumer volume discounts and sales,

consumer contests

point of purchase displays

free samples

gifts

incentive items

free travel, such as free flights

RESELLERS

-stockholding bonus

-sales target

-bonus for performance

-retailer contests.

-special rebate for above target performance.

Small hand tools are mostly sold through independent acehardware STORES

and hardware chains. Most of the customers are

-garage owners

-small builders

-renovators

-handyman

-repairers

-tool makers

-small workshops

-major workshops

etc etc

We need to do :

-stockholding bonus

-sales target

-bonus for performance

-retailer contests.

-special rebate for above target performance.

3. Program for consumer

consumer coupons

consumer volume discounts and sales,

consumer contests

point of purchase displays

rebates

free samples

gifts

incentive items

free travel, such as free flights

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Effect Of Counterfeit Branding On Sales Of Edhardy Marketing Essay

This research proposal is objectively aimed at understanding all the hurdles currently experienced by Ed Hardy in expanding their business in India. The business organization with intent to expand in different market entered India in the year 2007 as part of its expansionist policy to explore the commercial viability of the market objectively aiming at high profitability (Khilnani 2009).

In the year 2002, Ed Hardy who initially commenced his career as a tattoo artist entered into an agreement with Ku USA, Inc. to carry out and market a clothing line with the basis of his tattoo art design which was extraordinarily popular in the U.S.A. In a span of just two years, the international corporate giant Saks expressed interest in Ed Hardy clothing line. Hardy and Ku USA created the Hardy Life LLC, an organization possessing trademark ownership in addition to copyrights to all of Ed Hardy’s images.

Christian Audigier entered the Ed Hardy scenario in 2004 gaining rights for the clothing line production based on the artistic designs of Ed Hardy. Ed Hardy in today’s day and age has a commanding global position with outlets in New York, Los Angeles, Seattle, Honolulu, the Gulf Nations and India.

Iconic Brand Group made an acquisition of 50% of shares in Hardy Way, LLc. Iconic Brand Group made a payment of $ 17 million for major share in the Hardy Way as it estimates sales revenue to be to the tune of approximately £110 million by 2011.

Ed Hardy is undoubted recognized as an organization of high repute with its product lines having immense popularity especially among the younger generation. In European nations such as the U.K., U.S, Germany and France, the organization commands a high market share as its varied line of products such as t-shirts, shirts, shoes, belts and deodorants are highly consumed by the consumers. The organization has branches globally and has recently set up branches in India. (Chaudhari 2009)

India as a market is attracting a great number of Multinational as the high populace makes provision for a ready market for the merchandise dispatched for sale. Though Ed Hardy has numerous outlets at strategic consumer locations in India especially Mumbai that is the capital centre of the country, the business is primarily plagues with issues relating to counterfeiting. (Kotler 2007)

This decision for conduct of this research was essentially taken to highlight the issues faced by Ed Hardy. This brand has been a victim to Counterfeit Branding. Counterfeit Branding is highly prevalent in countries like India and China and these results in economic losses to the respective governments by way of taxes and the business are affected in terms of profitability. Ed Hardy T-shirts which are a rage amongst the college-going consumer and young adults commence at a pricing range of approximately Rs 1000 (20 USD) which is relatively on the higher side in terms of pricing. The pricing, though is not directly a contributing factor for the declining sales of the brand, counterfeiting of Ed Hardy products cause a massive impact on the sales and consequently the revenue (Keller 2007).

http://www.bestshoeswomen.com/images_products/Ed_Hardy_Original_Lowrise_100_Women_Shoes_Sneakers.jpg http://www.celebrityclothingline.com/wordpress/wp-content/uploads/2009/12/Ed-Hardy-Tshirt-Beautiful-Ghost-Graphic-Original-62-4499.JPG http://eleven.se/files/w/wallet-black-1_250x250.jpg http://www.funkytrend.com/wp-content/uploads/2009/02/ed-hardy-true-love-belt-thumb.jpg http://www.clothingcheapprice.com/images_products/Ed_Hardy_Emerald_City_Elphaba_Tote.jpg http://www.newwavefragrances.com/images_up/1239994301_art_EH-M-LINESHOT-450x400.jpg

Comparative Analysis of the Ed Hardy’s original and counterfeit products: http://www.revolveclothing.com/Brands.jsp?c=Ed+Hardy&sc=Shoes

Ed Hardy Product Line

Original

£ (Pounds)

Counterfeit

£ (Pounds)

Pricing Difference

£ (Pounds) (Approximately)

1

T-Shirts

26

6

20

2

Shirts

31

2

29

3

Converse Shoes/Heels

65

12

53

4

Belts

25

5

20

5

Wallets/Purses

60

7

53

6

Handbags

265

25

240

7

Perfumes

109

10

99

Ed Hardy commenced its retail chain at Mumbai, India in 2007 and has in continuity reported declining sales for the last three financial years citing counterfeiting issues as the primary reason for the failure of the brand to succeed in the Indian market. There is a huge pricing difference between the original and counterfeit product leading prospective consumers to continue the purchase of counterfeit products. The counterfeit products are reported almost similar to the original in terms of design, dimensions and labeling but lacks quality of the original yet it this factor does not prove to be discouraging for consumer who continue to patronize counterfeit Ed Hardy products. Ed Hardy, Nike, Rolex, Louis Vuitton, Dior, Yves St Laurent, Prada, Hermes and Cartier are generally the brands that are highly counterfeited. These brands have not reported higher profits in the last several years. (Simon 2005)

Year

Sales Revenue (Pounds)

1

2007

40 million pounds

2

2008

28 million pounds

3

2009

10 million pounds

The above table is clearly indicative of a constant and steady decline in the sales of the Ed Hardy Mumbai Outlet wherein at the first year of establishment of the outlet the reported sales was at 40 million pounds which declined to 28 million pounds and finally to 10 million pounds in the accounting year of 2009 (Kumar 2009).

Anti-counterfeiting laws and legislations though in existence have not been strictly imposed. The ACTA Act which is an Anti-Counterfeiting Trade Agreement Act between global trading nations of the world such as U.S.A. , U.K., Japan, France, India and many Asian countries has been ineffective in reducing if not totally eliminating the production and sale of counterfeit products. Counterfeit products in India are a booming industry which is crippling the economy and business ventures of especially fashion brands such as Ed Hardy. The Indian Judicial System is not as stringent and enforceable as the European counterparts. Strict punitive action is not taken against individual or firms indulging in counterfeiting reputed brands and hence this activity continues to flourish cause huge financial losses for organizations such as Ed Hardy and many more that have invested highly in the Indian market in terms of setting up retail outlets, promotion and advertising and all related expenditure. (Hakan 2009)

At times there have been recorded cases of legal action taken against offenders who are let off after an imposition of a penalty charge which is very minimalistic defeating the very purpose of the exercise. (Nayadu 2009)

India is generally characterized as a cost conscious economy with the general tendency of the consumers to buy or patronize products which are specifically low on cost. Quality of the product is a second consideration after the pricing factor of the product. Hence, international fashion brands such as Ed Hardy target a certain market segment which is the upper middle class wherein affordability of the product does not pose a problematic issue. This results in a narrowed target market segment. This segment would have issues in buying the high priced Ed Hardy product but with counterfeit Ed Hardy products flooding the market, the credibility of the original product is at stake as its exclusiveness is lost in the market of this product. The consumers that cannot afford the original product line of Ed Hardy turn to counterfeit substitutes to gain satisfaction of possessing the product and this has a negative effect on the limited market segment consumers of Ed Hardy as the novelty of the product is lost. (Puri 2009)

Besides high level counterfeiting of Ed Hardy product, the business House faces severe competition from other popular and well established brands such as Levis, Spykar, Adidas, Nike, Louis Phillip and many more that entered the Indian Market several years ago and have successfully gained good market prominence. These brands are well aware of the price conscious mentality of the Indian consumer and constantly indulge in competitive pricing strategies and promotional techniques to increase sales and subsequent profitability. Ed Hardy being relatively new in the Indian Market Scenario is hence confronted with hurdles in this form of excess competition thereby retarding growth and progress in the process. (Armstrong 2005)

The Government of India taxation policies toward FDI (Foreign Direct Investment) especially of luxury brands is comparatively and competitively high thereby creating a need for such multinational business organizations such as Ed Hardy to have higher sales to sustain themselves in the Indian market and grow simultaneously. The taxation rates of such brands amount to 40% of the product price which is ultimately borne by the consumer. Such taxation policies towards fashion brands are imposed with the intention to protect local and national entrepreneurs and their businesses form highly popular reputed brands such as Ed Hardy that command a high percentage of clientele globally.

This taxation policy of the Government of India has proven to be a deterrent factor contributing to slack in growth for Ed Hardy. (Keegan 2002)

To understand the obstacles faced by Ed Hardy and strategize ways to counter attack these problems

To identify the hurdles confronted by the Fashion Brand Ed Hardy in business expansion in the Indian Market

To ascertain if the business house been in a progressive state post-commencement in India

To establish what the future business prospects of the organization are

To gain knowledge if the Indian business market scene too competitive for the survival of Ed Hardy

To analyze if the Indian business market scene too competitive for the survival of Ed Hardy

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Hld the Effectiveness of Advertising and Promotional Tools in Increasing Sales and Attracting Customers to Desi Junction, a Fast Food Restaurant.

The effectiveness of advertising and promotional tools in increasing sales and attracting customers to Desi Junction, a fast food restaurant.
Consulting/Research Project - MBA 522

Introduction
For a business to be well known in the market there is a need to let people know about the products or services it is going to provide. Marketing a product in an effective way can help boost the business. There are many ways of marketing a product, and advertising may be considered one of the most effective tools to do so. Lake (2012) has defined marketing as "The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products." Advertising on the other hand, is a business strategy to get a large number of customers. “The advertisements emphasise the positive and maximise the attractiveness” (Kim, Cheong & Zheng, 2009). There can be various media to advertise a product such as audio, video, word of mouth, online advertising, print advertising, banner/billboard advertising, and in store advertising.
The present research will be conducted to find how effective the advertising media used by Desi Junction has been in attracting new and retaining existing customers. Desi Junction, located at 88th Ave. Scott Road, and now with its second location at 137St 72 Ave., has been serving people Indian cuisine since January 2006. Desi Junction's main objective is to promote sales and to increase market share by attracting more customers. Some of the advertising media used by Desi Junction are mailing brochures to households, newspaper, and radio advertising. Promotional tools that Desi Junction has been using to retain existing customers and attract new customers are discounts, sport-night events, discount coupons and two-for-one specials. The present research will find out if these promotional tools have proved effective in promoting Desi Junction's...

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