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Competitions,
company gimmicks woo consumers
Due to various reasons, promotions play a large role in many marketing strategies. According to a recent survey conducted by The Sunday Times FT, most companies get quite a profitable return from the promotions they carry out, making it well worth the money they spend at the end of the day. On speaking to the local "Godfather of Advertising', Reggie Candappa, Chairman of Grants McCann Erickson, I was enlightened on just how and why promotions are organised. It's vital to conduct promotions, especially if you are a market leader because everyone wants to eat into your business. However, after a competition is over, sales could take a dip, therefore it's important to have some sort of incentive such as an added flavour, etc. to stimulate the market and keep them loyal, long after the promotion. Also, since there are many similar products competition is great so it's essential for a product to have a unique identity. Most people swear by certain brands and once they learn to trust a certain brand, it's difficult to shift them. They remain loyal, he says. Promotions
can be very innovative and imaginative, but intense research must
go into the target market, their likes, favourite haunts, thereafter
retaining their loyalty will be relatively easy. "Life is one
big competition anyway and the best man wins. However, winning is
one thing… keeping that win is another" he says knowingly. Be it to increase sales, block competition, increase usage, introduce a new product or create excitement in the market, the approaches have to differ from one to another. "However, most often promotions are more effective for smaller brands rather than for larger brands as the penetration is higher in the latter group, thus making it unlikely for new people to try out a new product" he added. Kenneth Honter,
Director Operations, Minds FCB believes that it all depends on the
effective selection of media relevant to each target market. It's
vital to understand the objective behind the promotion, so that
it'll have a definite direction and purpose. The average cycle has its peak time and its dips. Promotions are usually done during the latter stage, to revitalise sales and give it a much-needed boost. "I also believe that promotions are more effective with younger audiences than older and more mature markets because they've been there and know exactly what they want and would rarely shift," he says. President of the Sri Lanka Institute of Marketing, Taslim Rahaman say in definition a promotion is a short-term activity to accelerate your sales. However, competitions may not always be conducted to improve sales but maybe to sometimes launch a product or even change a brand. Younger and middle-aged people fall into the general target market as they have more buying power. Also, the products aimed at the older generation are products or services like insurance policies that are more to do with established brands who mainly try to advertise their latest perks, rather than induce change. Even this type of loyalty can be broken if the campaign is strong enough. One of the most important aspects of a promotion is to deliver the promised goods. The success of any campaign would invariable depend on whether or not the consumer receives the reward. This way you maintain good relations with your customer and ensure loyalty tops your brand. This is in keeping with the main thrust of your promotion. A spokesperson for HSBC stated that promotions, especially for credit cards, are most effective via press or direct mailers. These kinds of campaigns "cuts across the board," she says. If you offer a good price, then people from all sectors would be interested. "Even a little thing like a free cooler bag, had a lot of appeal as it was useful and was in keeping with the bank's image," she adds. It's paramount that a company does a thorough analysis of their customers and potential customers and understand their needs. That way they know exactly what to offer customers and when to offer it. "At the end of the day, all the money we spend on these promotions, pay off. We get back just as much or more than what we put in, so it's worth it," she says emphatically. Do promotions
really work for companies and advertising agencies as an effective
marketing tool and are customers responsive to them? The overall
feedback seems to be positive. People do like to experiment sometimes
and try out new things. Some go back to 'the known devil', others
may stick with the new discovery. Are the goods once delivered,
still as good as expected or do they fail to meet with consumer
expectations? Promotions have and will continue to storm the market.
An antenna that will send and receive the signals from a satellite has been fitted to the outside of the aircraft. The server, through which the data is transferred, resides in an equipment rack fitted into the ceiling of the aircraft. More than 15,000 feet of cabling will run through the internal walls of the fuselage, into the seats, and up to the Internet connection points in the arm rests in First and World Traveller Plus and by the laptop plug in the Club World flat beds. The technology could also provide British Airways with the capability to broadcast live television and radio shows - all in flight. The new system will allow travellers to send real-time e-mails at ten times the speed of traditional e-mail connections. Connexion by Boeing is a Boeing business unit with campuses in Seattle, Washington and Irvine, California and is the revolutionary provider of mobile information services focused on bringing true real-time broadband connectivity to aircrafts during flights. Mega
industrial fair at new BMICH centre
The exhibition centre named after Sirimavo Bandaranaike is the largest of this kind in South East Asia with space for more than 170 stalls. Chamber president Aloy Jayawardene told reporters that the chamber was well experienced in holding fairs and exhibitions and has arranged several successful fairs in the past. He said that with stability returning to the country, international trade was getting interested in Sri Lanka and this industrial fair offered the best opportunity expose their products and in a like manner Sri Lankan industries would also be promoted. (QP) Prizes
for Swadeshi's Perlwite consumers
The company said in a statement that a two-door refrigerator, washing machine and a 14-inch colour television would be on offer as first, second and third prizes respectively, for each month of the promotion. Consumers would have to write their names and addresses on wrappers of Perlwite Extra soap, Perlwite AOS soap and Perlwite washing powder and send it to a designated P.O. Box number to participate in this exciting promotion. "This promotion enables us to reward our loyal consumers as well as to reinforce the brand's image as a superior product in the local laundry care market and further build brand loyalty among the masses," a spokesman for the company said.
The highlight this year is once again, a muiti-million rupee Volvo sedan being offered as the grand prize. The bank also offers valuable prizes ranging from air tickets to mobile phones and cash, a statement from the bank said. Power 2003
includes 4 quarterly draws culminating in a grand draw. Each quarterly
draw offers sixty prizes consisting air tickets to Dubai, mobile
phones and cash. "The Power cheques concept has proven to be exceptionally popular among account holders. In fact, the account base too, has shown remarkable growth as more and more people opt for an account with HNB. This is not merely because they get much more out of their current accounts with HNB but also as a result of the complete banking experience they have come to enjoy, " says Kalum Wijesooriya, Chief Manager- Marketing. |
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