Batch : SIMC (UG) 2014 

Course Code : 50121411  

Course Name : Integrated Marketing Communication I and Account Planning I

 Roll Numbers: 720, 721, 712, 711

 Assignment Number: A 411

 

Sun Products in the Dark

(It is to be noted that we have tried our best to try and analyze each tool and its possible practical usage for

promoting Sun Products before classifying it as least or most effective. However, the agreement or disagreement of others with this list can sometimes be subjective in terms of perception, imaginative capability, experience, or pure gut

and instincts.)

Q1 - WHICH CONSUMER SALES PROMOTIONS ITEMS WILL BE LEAST

HELPFUL TO JESSICA AND SUN PRODUCTS?

To start off with, it is important to eliminate the sales promotion tools from the table which could do more harm than good to Sun Products. It is important to prune the line of prospective tools in order to ensure that the resources of the agency and client are not invested in loss-making ideas.

 • 1 – Bounce Back Offer (under Coupons)

• Bounce backing coupons depends on the hope and expectation that the customer would return for a re-purchase of the product to avail/redeem the coupon. Such an offer would work for products that need frequent and immediate replacements or repurchases, for example necessary and routinely used commodities.

 • Moreover, use of Sun Tan lotion is seasonal – around the

peak summer season. This means that the possibility of the customer to return and redeem the coupon Hence, bounce backing coupons would be futile and their redemption would take ages till a customer completes his first tube.

• 2 - In- or Package Premiums (under Premiums)

  

• This tool guarantees a gift inside or with the package. Presuming that the gift to be given is associated closely with the primary product, this tool would not be one of the best ones to use.

 • For instance, if the marketer decides to gift swimming goggles

free with the purchase of the sun tan lotion, it would be a cumbersome task to bundle the goggles – which are larger in size, with the lotion tube. Hence, this logistical problem of storage will render the tool useless.

 • However, a ‘Free-in-the-mail premium’ which guarantees a gift

at the submission of proof of purchase would be useful (which will be mentioned and elaborated on in the next question)

• 3 – Sampling

• The positive (or negative) effects of a sun tan lotion can only be gauged over a period of time after the skin (with the tan lotion) has been exposed to the sunlight for a considerable amount of time. The lotion is used for several days for the tanning affect to become apparent.

• Hence, handing out a small sachet as a sample will be ineffective if it is used to induce customers to switch from a different brand. A typical sample sachet will not last for more than one usage as users tend to use a considerable amount of lotion for a single use. Any effects from using the sample of Sun Products will be cancelled after using the lotion of another brand.

 

• 4 - Loyalty  

This strategy mainly involves collecting points by making repeated purchases over a long period of time and then redeeming them based on the term and condition applied. The product which the Sun Product offers are low end products in which convincing the consumer to switch brand is easy, by using Loyalty as a promotional strategy the consumer will not be motivated as they would have to wait for months or longer to redeem their points while Hawaiian Topics excessively continues to offer free sample and hold contest which gives an immediate result.

 

• 5 – Rebates

• This strategy involves making purchases at a large scale and then getting a price cut or some other benefit in return. This strategy will not work for a product like Sun product as a majority of people do not stock up sunscreen; they make small purchase at frequent interval of time. Since, the consumer will not make large purchase this strategy will be fruitless.

• 6 – Price off 

• Price off opens the space for a price war between competitors. However, because sun tan lotions are not routinely used products, their prices cannot be drastically slashed. And as these products are bought at a specific season of the year when summer is at its peak, price off may not contribute greatly to sales as the demand for it would still be inelastic.  

• Buyers of sun tan lotion would not increase their purchase due to this price incentive.

Q2 – WHICH CONSUMER SALES PROMOTIONS ITEMS WILL BE MOST

HELPFUL TO THEM?

Now that we have eliminated the less useful tools of sales promotion, Jessica Corgiat can streamline the available tools from the marketing arsenal and weigh its effectiveness. This list of effective tools will then form the base for a comprehensive IMC programme for Sun Products of which Sales Promotion will be an integral part.

• 1 – Free-in-the-mail Premium (under Premiums) • As against the difficulty of executing ‘In or Package Premiums’,

Free-in-the-mail Premiums wherein gifts are given to the customers on showing the proof of purchase can be useful.

• This will enable Sun Products to have an edge over Hawaiian Products who are so far not involved in premium giveaways and this may, apart from satisfying its own customers, pull in some customers from some competitor brands too.

• Premiums like swimming goggles, beach towels, beach ball, mini-surfing board and so on could be thought of for the premium gift.

 • 2 – Contests and Sweep stakes – Scratch and Win • By synchronizing with relevant and effective advertisements, Sun

Product can use the ‘Scratch and Win’ tool to excite the customers into buying their Sun Tan Lotion. ‘Contests’ would be an open option too, however Sun products could run the risk of seemingly ape the sales promotion techniques of Hawaiian products.

• Such an exciting offer breathes freshness into the product and helps in building popularity even through word of mouth.

• An exciting gift or a holiday vacation to the lucky customer can gain media coverage too as a few supplements cover such stories in the market.

• An all-expense paid trip for the lucky winner to, for instance Rio de Janeiro, would also contribute to the ‘sexy’ element of Sun Products’ Sun tan lotion.

• 3 – Tie-in Promotion• Tie in promotion can be used to bundle the Sun Tan lotion with

another brand’s skin care product. Research can be conducted to identify the various skin problems that people who tan their skins face on a regular basis.

• Our short study reveals that most of these people suffer minor skin burns and skin irritation after prolonged exposure to the sunlight. Hence, Sun Products can either bundle the Sun Tan lotion with a product in their own line which may heal this burn or minimize irritation. That would be an intra-brand tie up.

• Else, a skin care product of another brand can be tied with this tanning lotion. For instance, Himalaya Herbals Cucumber Face Pack with Sun Products’ Sun Tan Lotion. The cooling effects of cucumber can help minimize burning sensations.

• 4 – Event Sponsorship• Sun Products can use an Event Sponsorship to exemplify its

‘sexy and safe’ personality. The various top-of-the mind connotations associated with a sun tan lotion are beach, sand, glaring sunlight, games, water, sea-boarding, surfing, beach-volleyball, beach-chairs etc.

• Hence, tying up with an event that correlates with these elements and emotions will enhance the image of the product and give it much publicity. Increased visibility of Sun Products’ Sun Tan Lotion during the event will help boost sales as well.

IMC CAMPAIGN FOR SUN PRODUCTS

Consumer Sales Promotions

Sun Product

s

Sun Tan Lotion

Free – in – the – Mail Premium

• This premium offer will be executed during the peak summer season of February (in terms of summer in Brazil)

• An inflatable Beach Volleyball will be gifted to customers on producing the proof of purchase of the Sun Tan Lotion.

1 – FREE – IN – THE – MAIL PREMIUM

• Justification

Beach Volleyball is the most popular sport played on the beaches, and striking an association with sun bathing on the beach will help increase Sun Products’ brand recall in such seasons.

1 – FREE – IN – THE – MAIL PREMIUM

Challenges

The client will have to ensure that the stock of the Volleyballs reaches the point of purchase in very major store where the promotional tool will be used.

Manufacturer will have to ensure minimal or no faulty or punctured balls.

The balls should be of decent quality and not contribute to skin allergy as is commonly noticed with low-quality rubber and latex used in balls.

1 – FREE – IN – THE – MAIL PREMIUM

Sun Product

s

Sun Tan Lotion

Free – in – the – Mail Premium

Scratch & Win

Advertisements

• In the same season, a scratch and win card will be issued at the purchase of every bottle of Sun Tan lotion.

• This offer will be conducted for the entire month of January, and will be advertised as an offer heralding the new year.

• Five lucky customers will win all-expense paid trip of 4 days to Rio de Janeiro in the month of March

2 – SCRATCH & WIN (CONTEST AND SWEEPSTAKES)

• Challenges

This promotional offer will have to be effectively synchronised with a strong advertisement campaign that communicates about this sales promotion.

Tie ups with resorts in Rio de Janeiro will have to be established prior to the release of the promotion.

All other logistics concerning the trip to Brazil and back will have to be designed and approved by senior Marketers

2 - SCRATCH & WIN

Sun Product

s

Sun Tan Lotion

Free – in – the – Mail Premium

Scratch & Win

Advertisements

Tie – in - Promotion

• Justification

In the off-peak seasons of the year, a ‘Tie – in – Promotion’ scheme will be held to promote our brand.

Sun Products will undertake an Inter-brand tie up with Himalaya Herbals by offering its ‘Almond & Cucumber Peel Off Mask’ free with a tube of the Tan lotion.

Users of tanning lotions often complain of skin irritation due to burns. The cooling properties of Cucumber and nourishment properties of Almond will enable users to tackle this problem.

3 - TIE – IN - PROMOTION

• Challenges

Terms and Conditions of the tie up with Himalaya Herbals will have to be clearly laid down.

There’s a risk of the failure of Himalaya’s Herbals’ product getting pervading into Sun Products’ success (and vice’ versa)

3 - TIE – IN - PROMOTION

Sun Product

s

Sun Tan Lotion

Free – in – the – Mail Premium

Scratch & Win

Advertisements

Tie – in - Promotion Event Sponsorship

Justification

• To establish a connect with the emotion of ‘sexy’, Sun Products can consider tying up with the event ‘Sunburn’ in Goa.

• This event takes place one the shores of Candolim beach over a period of three days.

• The audience for this event is young, energetic, and music loving. These brand associations can work well for Sun Products and give it much visibility. This event also attracts a lot of foreign crowd which is much enthusiastic about sun bathing and tanning.

4 – EVENT SPONSORSHIP

Challenges

The relevance of the atmosphere that Sun Products would really depend on is scorching heat throughout the three days in Goa. This would in turn capture the attention of the audience and in turn increase sale.

However, if end-December welcomes overcast conditions, the atmosphere would be great for music but not so for the sale of tanning lotions.

4 – EVENT SPONSORSHIP

FINAL SNAPSHOT CONSUMER SALES

PROMOTION PROGRAMME…

Sun Product

s

Sun Tan Lotion

Free – in – the – Mail Premium

Scratch & Win

Advertisements

Tie – in - Promotion

Event Sponsorship

Press

IMC CAMPAIGN FOR SUN PRODUCTS

Trade Promotions

• In-store displays are promotional fixtures in retail stores.• Variations of in-store displays include– Point-of-Sale Displays, which are located near cash

registers to encourage impulse buying;– Floor Stickers, or advertisements for products on the

aisle of a store;– Feature Displays, which can be located at the end of

an aisle to draw attention to a product;– Special Racks, or manipulation of a store shelf to

make more space available for a product or bring attention to the promoted product.

1 – IN-STORE DISPLAYS

• Justification

• In-store Displays can be perceived as more visually appealing to consumers than product alone on a retail shelf.

1 – IN-STORE DISPLAYS

• (TPR) are either directly or indirectly lower the cost per unit of a product.• Examples include:– “cents off” promotions, where manufactures

or retailers temporarily reduce the price of a product;

–Bonus Pack promotions which offer extra product for free.

2 – Temporary Price Reductions

2 – TEMPORARY PRICE REDUCTIONS

•Justifications•Consumers benefit from either paying a lower price on a product or getting more of a product for less money.

• Contests normally require the participant to perform some type of activity.

• The winner is selected based on who performs best or provides the most correct answers. No purchase is required to enter a sweepstakes.

• Consumers can enter as many times as they wish, although it is permissible for firms to restrict customers to one entry per visit to the store or some other location.

• The problems with Contest and Sweepstakes are the cost, consumer indifference and clutter.

3 – CONTESTS AND SWEEPSTAKES

• Lack of accurate and timely information• Trade promotion decisions are often rushed and based on

sub-par data.• While Sales and Marketing managers are surrounded by

promotion information, questions on retail commitment and product forecast accuracy can hinder the process.

• Multiple data sources and conflicting needs from various departments further complicate the issue.

CHALLENGES

• Inability to plan promotions based on analytics• Historical trade promotion data should be analyzed in

order to continually improve trade promotions.• If a company does not utilize processes and systems that

measure trade promotion performance, future trade promotion executions could be less effective than if they’d been planned using past analytical information.

CHALLENGES

• Ineffective organization and partner integration• Lack of integration both internally and with external

partners can hinder trade promotion success.• Key elements of organizational integration include

standardized metrics, regular information sharing, cross-functional department collaboration, and collaborative processes.

• Integration with retail partners is important to executing promotions successfully, as well as maintain strong relationships with retailers over time.

CHALLENGES