SALES PROMOTIONS in CIGARETTE INDUSTRY
Sales promotion schemes – for Consumer
– to increase consumption / to provide extra loyalty benefits /
trials for a particular product
Types of
Trade offer to consumers can be cross promotion, free stuff, discount, price
reduction, contests etc.
Cross
promotion – A single stick is given to the smoker who purchase
competition brand (generate trails).
Free stuffs –
Free cigarette sticks or cigarette packets is given if the smoker is ready to
purchase the same brand product from retailer ( Pan shop )( Propones purchase, impulse purchase , limited period offer,
more consumption )
Discount – Price
difference, price off, it is done if company does not want to decrease price
and same point wants to evaluate competition
Price
reduction – Price reduction of slow moving cigarette brands (generate trials, more consumption, to create
competition in a brand segment)
Contest – After
buying a packet or stick of a cigarette from shop the consumer has to call on
the toll free number which is given on the pack and has to answer the
questions. E.g. free Paytm balance, Download the application and scan the packet of the product from the application and character which are on the packet start moving/dancing/singing in the downloaded application etc.
Insert
coupons - Price off – off 5/10/20 etc amount
to push the slow moving product
Trade scheme - For retailers – to
increase stock pressure – to make retailer buy more - New product launch -
display / visibility
Types of
trade schemes
QPS – can be
a one time purchase / scheme for 15 days or 30 days / new product launch
SLAB
|
SCHEME
|
Buy
5 packets
|
1
packet free
|
Buy
10 packets
|
2
packets free
|
Display
payouts –
DISPLAY
|
PAYOUT
|
COUNTER
TOP
|
200
PER MONTH
|
WINDOW
/ SHELF
|
300
PER MONTH
|
Target
incentives – (monthly schemes ) - Payment
TARGET ACHIEVEMENT
|
PAYOUT
|
90%
TO 95%
|
1500
|
95%
TO 100%
|
3000
|
ABOVE
100%
|
4000
|
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