What are the techniques of Trade sales promotion?

promotion management

• Assume i am the marketing director of a trendy bar and coffee house. in our place the consumer is evenly distrubuted between white collar professionals drinking cocktails, beers and imported coffees in the '5 O'clock Lounge' and blue collar workers drinking beer, spirits and coffee in the public lounge. After 6 months of preration i feel that sales in both lounges could be improved and decide a sales promation program. i divide sales promation plan into two sections: 1 trade promations 2 customer sales promations focus on this promation program 2 types consumer segmentation,white collar 5 O'clocl lounge and blue collar public lounge must equalize. i need following information around 3000 words in report format. Sates promotion: 1.Trade promotions (generate support and interest from suppliers) B2B MKT 2.Customer sales promotions (increase profile and customer) ·How to attract the customer’s awareness of our existence ·How to drag them into our bar and buy Tasks ·Outline specific tools and provide ideas to generate support and interest from suppliers (trade promotions) ·Outline specific tools and provide ideas to increase the profile and custom of my coffe/bar, customer: white collar & blue collar i need this answer on 19/1/2003.

• Answer:

  TTFish, Thanks for your question! This is going to be fun for me. I feel imminently qualified to answer this question. I’ve been a marketing manager, marketing consultant developing strategic marketing plans, and more recently have taught marketing management at the college level. Of course the question is highly subjective, so any ideas I may offer must come from my personal biases and experiences. In addition, I obviously know nothing about your business or its particular competitive situation. Our ultimate goal is to provide you with hopefully some creative ways to get people into your establishment. And of course creativity is the mother of subjectivity. So what I may like, you may not like at all. That is always a risk in this type of endeavor. With that said… Background and Analysis The goal of this paper is to provide a review of possible marketing opportunities for a “trendy” bar and coffee establishment. This shop provides mixed alcoholic drinks, beers, and imported coffees. It is divided into two lounges, each catering to a different target market. The “five o’clock lounge” attracts the white collar executive. The “public lounge” is frequented by the blue collar worker. The product mix for each lounge is different. (This is a brief overview. I’m trying to save words if this is for your personal consumption. If not, you may want me to add more info here since this part is critical to what follows.) Assumptions The marketing overview given below is based on the following assumptions and observations: * It is difficult to focus on two target audiences – professionals and blue collar – with the same promotional campaign. Two campaigns are presented, but priorities and budgets must be assigned to each based on the profitability of each segment. * Although budgets are not considered to be unlimited, the assumption is made that sufficient cash is available to take advantage of promotional opportunities that present themselves. * According to the Dictionary of Marketing Terms (http://www.buseco.monash.edu.au/depts/Mkt/mtp_online/dictionary/ttt.html), Trade Sales Promotions are defined as “an incentive offered to resellers to encourage them to buy more of a particular product and to sell it more aggressively.” I’m assuming that you are using the term with this definition in mind. * For purposes of this paper, we shall refer to the two lounges as “The 5 o’clock Lounge”, and “The Public Bar”. * We believe strongly in highly targeted promotions. Each specific target market being pursued should be pursued in a unique manner. Obviously white collar workers respond differently to “good ol’ boy” promotions than will blue collar workers. But targeting should go far beyond these simple terms. For example, if blue collar workers are primarily construction workers, they may respond better to bikini contests. Auto assembly workers may respond better to free food at happy hour. While these are just examples, the point is that the specific campaign should be targeted to the specific audience. * We feel that advertising is one of the most effective ways to promote retail establishments such as yours. One of your goals should be to make people who don’t know about you, aware of who and where you are. The most effective – and often the least expensive – way of doing this is through media advertising. * The second most effective way to increase sales is to get existing customers to return more often, and to build their loyalty as the place to go after work. The promotions in this paper are specifically designed to accomplish these two latter goals. * Each state has a different set of laws governing establishments serving alcohol. Many states do not allow free alcohol in any form. Other states do not allow “happy hours”. Some states severely restrict your ability to advertise. We are using our best judgment in the development of these promotions. Marketing Overview The following marketing overview is based on limited information about the specific details of your establishment. Each of these promotions should be customized to your particular resources, audiences, goals, and objectives. This marketing overview is divided into trade promotions, consumer promotions, and media advertising. Consumer promotions is further divided into white and blue collar audiences. Media advertising is handled separately since the same principles will apply for both white and blue collar promotions. This saves redundancy. A. Trade Promotions Trade promotions, as defined above, typically involve suppliers such as liquor distributors offering incentives and promotions designed to encourage the retailer to promote its products. These promotions will be highly dependent on the specific promotions currently offered by the suppliers, and the suppliers’ aggressiveness in the marketplace. However, based on the market, the various suppliers may be receptive to listening to your proposals and participating in them jointly. Your success in this endeavor will partly depend on the volume you currently have with your suppliers. Obviously, the more your current sales are, the more clout you’ll be able to bring to bear. In addition, the size of your market will impact your success. Location in a major metropolitan area will help. It should be understood that developing trade promotions with your suppliers will still require a great deal of effort and time on your part. Trade promotion in this context is primarily a way to increase revenues and associate a well-known entity to legitimize the promotion. It should also be understood that your supplier will – and should – expect significant exposure in return for his investment. These may include equal or greater billing in media advertising, logo’d banners and giveaways, and even an information table. Specific demands will vary from market to market. Some possibilities in this area include: 1. Ask your supplier of gin and vodka to jointly offer with you a martini special in the executive lounge during the month of February. During that month, the lounge will feature 10 varieties of martini, such as apple, classic, etc. One of these specials should be a house branded “5 o’clock lounge martini”. In return for this promotion, you will be expected to purchase twice your average monthly purchase in advance, and run media advertising as indicated below. Your supplier should commit to a 10% reduction in your liquor price, paying for the cost of promotional table tents and posters (featuring their brands’ logos; ex: “Brought to you by Smirnoff”). Your supplier should be able to offer you assistance with one or two special recipes using his brands of gin, vodka, and liqueur. 2. In connection with the promotion detailed under A1 above, ask the liquor supplier to coop the payment of a city-wide advertising campaign as described below. 3. Ask a different supplier of beer to jointly offer with you a “Miss Public Bar” promotion. Good target distributors would be Budweiser or one of the hard lemonade distributors. There are a number of different formats you could jointly agree on. More information is give below under blue collar promotions. Again, the supplier should give you a discount, and help pay for the various promotion components. 4. (Since you mention B2B market) Contact the personnel manager or president of larger employers within a few mile radius of your establishment. Offer to supply free office parties with finger foods to all employees after work. This will work better prior to or during holidays such as Valentines Day. Larger companies will probably not participate, but smaller ones may very well. If they do not, consider distributing custom fliers under the windshields in the employee parking lot. (You may need to get permission.) The flier should have the name of the business where the cars are, and a specific promotion as listed in this document. You have little to loose, and you may become the establishment of choice for the company if you’re successful and remain organized in your marketing efforts. B. Consumer Promotions 1. White Collar a. This should work well if you have a high volume of singles that frequent the lounge. Put a telephone on each table with a numbered flag. People from one table can call people at any other table by simply dialing the table number. I’ve seen this in practice, and it’s a great ice breaker and a good way to attract singles. b. Ask each patron to drop his or her business card into a fishbowl on the bar. Give away a collection of door prizes each Friday at 6. Some prizes can come from your suppliers. You should give a grand prize away once a month or so. For some larger prizes, you must be present to win. For the smaller prizes, you need not be present. Advertise this promotion on in-store posters, table tents, and direct mail. c. Set up a website to promote the site. The website should obviously show location and photos of patrons having fun. But you should also have a calendar of your upcoming promotions, and a way for new visitors to register for upcoming door prizes as described elsewhere. Most importantly, display your web address throughout the lounge, on all advertising and promotional items. Keep it up to date. d. Offer a martini promotion during a fixed period of time. Thereafter, continue offering martinis with a special menu. You may want to offer a different drink depending on preference in your specific area. Daiquiris or marguerites are other options. 2. Blue Collar a. “Miss Public Bar” promotions - You could have a bikini contest every Thursday night (or pick your slowest night) for 8 weeks. The weekly winner receives a collection of prizes donated by your various suppliers. The 8-week winner receives a grand prize you offer from the increased proceeds. This format should attract a good audience if a large part of your audience is single males. Alternatively, you could “turn the tables” and feature a contest to find the most intelligent woman. This would work well if a large percentage of your clients are female. You would pre-select contestants from applicants who submit their photo with the application. Obviously good looks are a prime consideration. You could then stage an 8-week trivia game show to determine the smartest woman. Winners of one week would face a new challenger next week. Friends and family would come, as well as regulars. b. Purchase some free giveaway items for a promotional products company. Pens, beer can openers, key fobs work well. Give them away to good patrons often to build loyalty and to advertise. c. If your state allows it, offer $8 nights. For a flat $8 cover, patrons can have unlimited draft beers. The exact figure should depend on prices in your area, and the average ticket for beer. You should not see a decrease in average ticket, and the perceived value may draw a big crowd. 3. Media advertising No matter what specific promotion you select for your establishment, we feel that media advertising is an essential way for retail establishments to attract new business. There are few other choices open to make new customers aware of you. Here is a list of each preferred media, and when it should be used. The assumption is that your supplier, as noted above, will pay for at least one half of the cost. You may even negotiate a better deal. a. Newspapers – Daily and weekly “entertainment” tabloids are excellent venues for you to use to promote your special events. They are cheap per exposure, and since most adult consumers are at least potential customers, there is little waste. Use smaller ads – an eighth of a page or less – but run the ad every week in the same location. There a many variables so be sure to consult your media sales reps and analyze their media kits before making a decision. b. Radio/TV – This is expensive for your purposes and you should stay away from these. c. Direct Mail – Most bars and lounges get their clients from within a relatively small area around the location – sometimes as little as a mile or less. This plays into your hands. Purchase a direct mail list for this zip code (don’t pay more than $60 per thousand names) and send out a one-time post card advertising your establishment. Pick your promotion carefully. It should have universal appeal. With your permission, I’m not going to invest my entire time – or my entire 3,000 words – in this question at this point. What I’d prefer to do is to get feedback from you to see if I’m on the right track. With no suggestions, I’ll continue work to complete the answer by the 19th. If you’d like to focus on one area – or if I’m totally off base – I’ve still got time to go back and invest some more time in this. This is fun! Prof