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ASSIGNMENT 3

ON

SALES PROMOTION TOOLS:AXE


DEO

FOR

SALES AND PROMOTION

SUBMITTED TO: SUBMITTED BY:


Ms. JASPREET KAUR VISHAL SINGH
Reg. No. 10904540
Roll No. RT1902B55

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.

OBJECTIVES OF THE ASSIGNMENT

➢ Explain the meaning of sales promotion;

➢ State the objectives of sales promotion;

➢ Describe the various tools used in sales promotion;

➢ Recognise the role of each tool in promoting sales; and

➢ Describe the importance of sales promotion in business.

Definatipon of Sales Promotion

“ Sales Promotion is a Marketing Discipline that Utilizes a Variety of Incentive


Techniques to Structure Sales-Related Programs Targeted to Consumers, Trade, and/or
Sales Levels that Generate a Specific, Measurable Action or Response for a Product or
Service.”
Sales Promotion Goals Sales Promotion Has Three Goals That Relate to Its Target
audiences:
➢ To Increase Immediate Customer Sales.
➢ To Increase Support Among the Marketer’s Sales Force.
➢ To Gain the Support of the Trade in Marketing The Product.

Sales promotion can be consumer or trade oriented:

✔ 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.

Sales promotion techniques


 Price deal: A temporary reduction in the price, such as happy hour
 Loyal Reward Program: Consumers collect points, miles, or credits for purchases and
redeem them for rewards. Two famous examples are Pepsi Stuff and AAdvantage.
 Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage
marked on the package.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
 Coupons: coupons have become a standard mechanism for sales promotions.
 Loss leader: the price of a popular product is temporarily reduced in order to stimulate
other profitable sales
 Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
 On-shelf couponing: Coupons are present at the shelf where the product is available.
 Checkout dispensers: On checkout the customer is given a coupon based on products
purchased.
 On-line couponing: Coupons are available online. Consumers print them out and take
them to the store.
 Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer
on a mobile phone to a salesperson for redemption.
 Online interactive promotion game: Consumers play an interactive game associated with
the promoted product..
 Contests/sweepstakes/games: The consumer is automatically entered into the event by
purchasing the product.
 Point-of-sale displays:-
 Aisle interrupter: A sign that juts into the aisle from the shelf.
 Dangler: A sign that sways when a consumer walks by it.
 Dump bin: A bin full of products dumped inside.
 Glorifier: A small stage that elevates a product above other products.
 Wobbler: A sign that jiggles.
 Lipstick Board: A board on which messages are written in crayon.
 Necker: A coupon placed on the 'neck' of a bottle.
 Trade sales promotion techniques
 Trade allowances: short term incentive offered to induce a retailer to stock up on a
product.
 Dealer loader: An incentive given to induce a retailer to purchase and display a product.
 Trade contest: A contest to reward retailers that sell the most product.
 Point-of-purchase displays: Extra sales tools given to retailers to boost sales.
 Training programs: dealer employees are trained in selling the product.
 Push money: also known as "spiffs". An extra commission paid to retail employees to
push products.
Trade discounts (also called functional discounts): These are payments to distribution
channel members for performing some function .

Sales promotion techniques used by axe deo


To increase the sale of any product manufactures or producers adopt different measures like
sample, gift, bonus, and many more. These are known as tools or techniques or methods of
sales promotion. The sales promotion tools used by dove for increasing their sales are as
follows:
✔ Free Gifts: Sometimes gifts like saving cream, shampoo pouch, pencil box, pen
etc. have been given by the manufacturer along with the dove soap in order to
increase their sales.
✔ Price-offs: Under this offer, products are sold at a price lower than the original
price. Sometimes AXE DEO offer some price off on purchase of a deo, This type of
scheme is designed to boost up sales in off-season and sometimes while introducing a
new product in the market.
Quantity deal:In order to increase their sales AXE DEO also offers buy 2 get 3
offers sometimes. The shopkeeper suggests that if you buy two deo, then you will get
an extra deo free of cost under “buy 2 get 3” scheme. The customer feel attracted to
buy as by doing so he is saving the money of one deo.

✔ Price-pack deal: The packaging offers a consumer a certain percentage more of


the product for the same price (for example, 25 percent extra). This is also an
effective tool used by the company. Here some extra quantity is provided at the
preaviling price i.e., without charging an extra price. The AXE DEO is also using this
technique for increasing their sales.
✔ Contests/sweepstakes/games: The consumer is automatically entered into
the event by purchasing the product. The AXE DEO also use this technique in their
sales promotion program.

✔ 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.

Reasons for the sales promotion


Reasons for the Growth of Sales Promotion Sales Managers are Under Great Pressure to
Produce Results Quickly. Sales Promotion Strategies Target Consumer, Trade, and The Sales
Force. Assessment of Sales Promotion is Relatively Easy. Cost for Results In This Industry
Are Relatively Low. that is why Are The Companies Spending More and More Money on
Sales Promotion.
1. Consumer Promotions
➢ Consumer sales promotions are directed at the ultimate user of the good or service.
 Intended to “presell” consumers so when people go into a store, they will look for
a particular brand.
 Primary strengths are their variety and flexibility.
 Many techniques that can be combined to meet almost any kind of sales promotion
planner’s objectives.
 It helps to increase sales in a competitive 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 off;
 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.

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.

➢ Point-of-Purchase Displays Display Distributed to Retailers Used to Call Customer’s


Attention to Product Promotions. Some of the Most Popular POP Tools &
Techniques Mechanical Product Dispensers Price Cards Signs Banners Special Racks
Carton Displays

➢ 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

ALTERNATE PROMOTION TOOLS USED


Various alternate tools that must be used by the AXE DEO are as follows:

✔ 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.

IMPACT OF SALES PROMOTION TOOLS BEING USED


The impact of sales promotion tools can be understand by explaning the following points:
✔ To introduce new products
✔ To attract new customers and retain the existing ones
✔ To maintain sales of seasonal products
✔ To meet the challenge of competition.

Let us learn about these 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.
✔ 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.