Assignment

I am real has entered the Chittagong market recently. It is a

company who makes 100% pure juices from own farm. The firm
charge BDT 100 per 200 ml bottle of juice.
The product has been placed in all the supermarkets and high-end
convenience stores on Chittagong.
Due to the high price of the product, the product has moved slowly
of the shelf.
You are requested to develop a sales promotion strategy to
enhance sales and brand image for both channel members and
consumers.
Marks: 20 (will be converted to 5%)

Table of Contents
Introduction ................................................................................................................................3
Identifying Target Customer .......................................................................................................3
Sales Promotion Strategies to Increase Sales ...............................................................................4
Consumer Promotion ..................................................................................................................4
Sampling .................................................................................................................................4
In Store Distribution.............................................................................................................5
Selective Sampling ...............................................................................................................5
Coupons ..................................................................................................................................6
Cross-Ruff Coupons .............................................................................................................6
Scanner-delivered coupons ...................................................................................................7
Sweepstake ..............................................................................................................................8
Point of purchase .....................................................................................................................8
Event Marketing ......................................................................................................................9
Price-offs .................................................................................................................................9
Trade Promotions ...................................................................................................................... 10
Trade Allowances .................................................................................................................. 10
Off Invoice Allowances ..................................................................................................... 10
Slotting allowances ............................................................................................................ 11
Merchandising allowance ................................................................................................... 11
Trade contests ........................................................................................................................ 12
Training programs ................................................................................................................. 12
Sales Promotion Strategies to Enhance Brand Image ................................................................. 12
Conclusion ................................................................................................................................ 14
Bibliography ............................................................................................................................. 15


Introduction
I am real is a company that makes 100% pure fruit juices without adding any sugar or
preservative. As the company is charging BDT 100 per 200 ml bottle of juice, it is considered to
be a high end consumer product. They have three flavors Apple, Pineapple and Pear (i am real,
2013). Recently they have introduced their products in Chittagong market. The products have
been placed in all the supermarkets and high end convenience stores. However, due to the higher
price of the product, the sale has been very slow.
Our aim is to develop a sales promotion strategy to enhance sales and brand image for
both channel members and consumer. Subsequently, we will also discuss about the advantages
and disadvantages that the company might face from following the strategy.
Identifying Target Customer
In order to develop a successful sales promotion strategy, we need to identify the target
customers first. As I am real is a high end, specialized consumer product, there are two criteria
we need to keep in mind while choosing the target customers. These are - financial capability
and health consciousness. The unique selling point of I am real is that, it is 100% pure and
completely sugar or preservative free. Therefore, the customers will have to be health conscious
in order for them to switch from other products to I am real. Additionally, as it is quite
expensive, the customers will also have to be financially capable of buying the product. Thus, we
can identify the target customers as the health conscious, upper class and upper middle class
consumers.
Sales Promotion Strategies To Increase Sales
Sales promotion strategies are directed towards both consumers and channel members or
resellers which includes retailers, wholesalers, distributors and dealers. We have to develop
strategies for both the groups
Consumer Promotion
There are different types of consumer sales promotion. In case of I am real, it is
recommended to use the following strategies
Sampling
Coupons
Sweepstakes
Price-offs
Point of Purchase
Sampling
Sampling is an effective technique used to introduce new products to the market place.
Providing free samples of I am real to the consumers give them a chance to see how well they
like the product. This way, the company can also reach the customers who normally would not
try their products. The company should try two different types of sampling
In Store Distribution
I am real has placed their products in the supermarkets and high end convenience
stores. They can supply these stores small samples of their products and ask the retailers to
distribute these among their customers.
When the consumers receive the free samples while entering the stores, if they like it,
there is a high chance that they will make a purchase of the product in the store. Even if they do
not purchase it right away, they are still getting familiarized with the product. This will create
brand recognition and increase the chance of sales in the future.
However, this method is quite expensive and does not guarantee a purchase. Therefore,
the company should decide on a minimal sample size which gives the customers a taste of their
product and yet keeps the cost low.
Selective Sampling
As the companys target market is health conscious upper class and upper middle class
consumers, gyms and fitness centers will be ideal for selective sampling. Gym members will be
given free samples of the juices and a sales representative can describe the benefits of all-natural
juices to them.
In addition to that, I am real can do selective samplings at different private universities
also. It is believed that most of the students studying in public universities in Chittagong are
from wealthier families. Therefore, selective sampling at the private universities (such as
Chittagong Independent University, East Delta University, Southern University etc.) will help
them to introduce the juices to their target customers.
Coupons
A coupon is a ticket or document that can be exchanged for a financial discount or rebate
when purchasing a product. There are several types of coupons such as Instant redemption
coupons, bounce back coupons, cross-ruff coupons etc. The best option for I am real will be to
use cross-ruff coupons. They can also use Scanner-delivered coupons.
Cross-Ruff Coupons
I am real can place their coupons in Daily Newspapers such as Prothom Alo, Daily
Star etc. Since newspapers work as mass media, placing the coupons on them will also work as
advertisements. It will increase the number of new customers as some customers might try the
product simply because they have a coupon for it. Later, if they like it enough, they will make
repeat purchases. Moreover, when they see the coupon, they will tend to remember the brand and
might actually recall when they go to the store next time.
The success of the coupons depends on the face value of the coupon, ease of distribution
and flexibility. In this case, as the coupons are distributed using mass media it would reach a lot
of customers. At the same time, it has to be attractive to the customers (e.g. customer should
think the coupon is valuable enough to redeem) and the company should provide enough time to
the customers to redeem it. A sample of what an attractive cross-ruff coupon might look like on a
newspaper is given in the next page


As shown in the example, the coupon should be flashy enough (picture of the product) for
the customer to remember, have enough value (10% off of the price) and enough time for
customers to redeem (almost a month).
Scanner-Delivered Coupons
This concept is fairly new in Bangladesh and not many people are aware of it. For this to
work, first of all I am real will have to identify their biggest competitor. If we take Chittagong
market into consideration, I am reals biggest competition is Masafi which is offering both
apple and pineapple juices (Hussain, 2014). I am real can target Masafis customer for
scanner-delivered coupons.
In this method, when a customer buys Masafi apple or pineapple juice and try to pay for
it at the supermarket counters, they will be identified by the system and notify the
teller/salesperson. Salesperson will then offer them a coupon for I am real juice. This method
is potentially very effective as they carefully target coupon distribution by identifying the actual
customers of juice products and not the potential customers. This increases the chance of sales
much more.
Sweepstake
Another effective way of sales promotion is sweepstake. Sweepstake is a form of lottery
where the contestants win a product without purchasing anything. I am real can arrange a
sweepstake on Facebook. First of all, they have to publish a post about the sweepstake on their
Facebook page which will clearly mention the rules and regulation of the contest and the prize.
In order to participate in the sweepstake, the contestants will have to like I am reals page on
Facebook and share the post about the sweepstake. After the deadline for entering the contest is
over, the company can chose the winner/s and send them the prize.
Theoretically, this sweepstake will not increase their sales. However, when people like
their page and share about the post, the brand will get recognized by a lot of potential customers.
People will become aware about the brand and this will lead to increased sales in the future.
Point Of Purchase
Point of purchase promotions are sales promotions that are usually placed outside or
inside the retail outlets to attract customers and create purchase impulses in the consumers. There
are several types of point of purchase promotions such as posters, danglers, banners, stand-up
racks, brand logos, products dispensers etc. However, posters and danglers are usually used by
the smaller retailers whereas the high end shops and supermarkets prefer stand-up racks and
product dispensers that complement their store environment (Point of Purchase Promotions).
As I am real products have been placed in all the supermarkets and high end
convenience stores, the best PoP promotion for them will be stand-up racks and product
dispensers. As a rule of thumb, consumers will not buy a product if they are not aware of it. PoP
displays will draw attentions of the customers when they are inside the store. It might also trigger
an impulse in the consumers because it will be in front of them at the exact same moment they
are making a purchase. Hence, the sales will increase.
Event Marketing
With all the controversy about harmful chemicals and additives added to the soft drinks
and juices, the consumers are really concerned about their health. I am real can take advantage
of the situation and arrange informative sessions all over the city to educate the consumers about
the adverse effects of preservatives and additives, added in beverages, on human body.
At these events, they can point out the problems with such beverages and promote their product
by focusing on the key point that I am real is completely natural. However, for such events to
become successful, the company will have to reach out to a lot of people. Therefore, these events
should be held in crowded places such as railway stations, bus stands, universities etc.
This method of marketing will not instantly increase the sales as people might not buy the
products right away during or after the events. Nonetheless, it will get the word out their
products and mouth to mouth communication will help them increase their sales eventually.
Price-Offs
Price off or discount is the most common type of consumer sales promotion. I am real
is a high end consumer product and it is much more expensive than its competitors products.
Most of the consumers may get discouraged to buy for the first time looking at its price.
Therefore, to encourage the customers to try the product, the company can offer the
products at a discounted price. When offered at a discounted price, many consumers tend to
experiment with the product and later become loyal to the brand. Moreover, discount pricing
leads to bulk purchasing which also increases the sales of the company.
Though discount pricing can generate higher short term sales, it often has an adverse
affect on the long term sales and brand loyalty. Continued discount pricing can reduce the brand
value and dilute the quality image more than any other promotional strategy. Therefore, this
strategy should not be continued for a longer time.
Trade Promotions
Trade promotions are directed towards the channel members such as retailers,
wholesalers, distributors and dealers. However, from the given information, we do not know
whether I am real has any other channel member than retailers. Therefore, here we will discuss
about trade promotions only for retailers.
Trade Allowances
In this method, supermarkets and high-end retail shops will be offered financial
incentives to purchase, promote and display I am reals products. There are several ways to
execute this method
Off Invoice Allowances
This is the most frequently used trade promotion and the retailers respond to this method
more often than other methods. I am real can deduct 15 percent from the invoice amounts for
all quantities purchased during the first three months. As this is a new and expensive product
and the retailers do not have any idea of what the customer demand for this product is, they
might be reluctant to buy the product in large quantities and tie up their capital.
If off invoice allowances are offered by the company, the retailers will be motivated to
buy the product more as their profit margin will be lot higher due to the off invoice allowances.
It might also attract the other retailers to become a channel partner of I am real.
Slotting Allowances
A slotting allowance is a fee paid by the manufacturer to the supermarkets or
convenience stores to place their products in their shelves. According to Federal Trade
Commission (Slotting Allowances in the Retail Grocerry Industry, 2003), retailers are more
likely to carry a new product when they are offered slotting allowances. This is because the
slotting allowances help the retailers balance out the risk of new product failure.
If I am real offers slotting allowances to the retailers, more retailers will be interested
in buying their products and placing them in their shelves. As the number of retailers increase, so
does the sale. Moreover, offering this allowance will encourage to buy more products at a time
and this will also increase the sales.
Merchandising Allowance
Merchandising allowance is paid to retailers for advertising and sales support activities.
Through merchandising allowances, I am real can secure premium spots inside and outside the
stores for displaying their point of purchase promotional materials.
If the PoP materials of I am real are placed in the premium spots and are more visible
to the customers than other products, the consumers are likely to notice and purchase more of
their products than the competitors products. The company can also pay promotional allowances
to the retailers for promoting I am real juices for their behalf.
Trade Contests
Trade contest is the monetary rewards given to resellers sales persons for achieving sales
goals. I am real can set up a specific sales goal for the resellers sales persons for each month
and give monetary reward to whoever can fulfill that goal. For example, the company can
declare that for every 100 bottles of sale they will give a reward of BDT 1000 to the sales person.
This will motivate the sales persons to sell at least 100 bottles to receive the monetary reward.
As a result, the sales persons will try to convince the customers to buy I am reals
products by positive marketing and discourage the sale of other juice products. This might
increase the sales very effectively.
Training Programs
The company can train the resellers about their products features and unique selling
point by arranging training programs in a separate venue or during the sales persons visits. The
retailers are usually interested in such programs because these help them sell more of the product
which they are trained about. Consumers buying decisions are often influenced by the retailers.
A trained retailer can convince the consumer to buy I am reals products by influencing him
using the USPs.
Sales Promotion Strategies To Enhance Brand Image
Most of the sales promotion tools are short term and they designed to stimulate quicker or
greater purchase of a particular product. However, there is a sales promotion strategy which can
enhance the brand image of a company. It is called Gifts or Premiums. In fact, premium is the
basis of most of the loyalty programs. To use Premiums successfully for enhancing the brand
image, I am real can join this promotional method with loyalty program.
Under this method, the company can provide loyalty cards. These cards will be available
at the supermarkets and the convenience stores and can be collected by any I am real consumer
after filling out some information (such as name, address, phone number etc.). From there on,
every time the customer buys any I am real product, he will receive some points. After
accumulating a certain amount of points, the consumers can redeem those points for a Premium.
However, since not all the convenience stores in Chittagong have the facility of smart
cards, this can be done in another way also. In this method, customers can collect the caps of all
the bottles they buy. When they collect 5 caps, they can send those to an address provided by I
am real and in return they will receive the premium free in the mail.
However, for this idea to work, I am real should offer something unique as a premium.
My suggestion for the company would be to offer a uniquely designed glass with I am real
engraved on it. This will be appreciated by the customer as they will get recognition from the
company and will become more loyal to the brand. On the other hand, new customers will see
this Premium and will be attracted to purchase I am real products.
The benefit of the free in mail premium is that they will add value to the I am real
brand. Moreover, there is no need for elaborate packaging and they allow the company to offer
unique premium such as personalized glass. Moreover when the consumers use such a unique
product, it will reinforce I am reals products and brand image in their mind which ultimately
enhances the brand image of the company.
Conclusion
In conclusion, we can say that by following the sales promotion strategies described here,
I am real can enhance their sales and brand image for both channel members and consumer.
Most of these methods are easy to design and implement and they are less expensive too. This is
very useful for small companies like I am real who has just entered the market with a new
product.
Nevertheless, the company should also remember that sales promotion methods should
only be for short term. Otherwise, it will dilute their quality image and reduce the brand value in
front of the consumers.



Bibliography

Hussain, A. (2014, July 19). Floor Officer, Agora Super Market, Chittagong. (M. S. Alam,
Interviewer)
i am real. (2013, January 8). Retrieved July 19, 2014, from www.facebook.com:
https://www.facebook.com/iamreal.juices
Point of Purchase Promotions. (n.d.). Retrieved July 21, 2014, from Boundless:
https://www.boundless.com/marketing/personal-selling-sales-promotion/consumer-sales-
promotion-methods/point-of-purchase-promotions/
Slotting Allowances in the Retail Grocerry Industry. (2003, November). Retrieved July 29, 2014,
from Federal Trade Commission: http://www.ftc.gov/sites/default/files/documents/reports/use-
slotting-allowances-retail-grocery-industry/slottingallowancerpt031114.pdf