Promotions are one of the most effective resources that brands have to make contact with their target audiences since through them it is possible to generate interest in the products or services in order to influence the purchase decision.
Among the most common promotions is offering free products, additional content at a lower price, participation in raffles or the offer of prizes, among others.
These can be executed through media, point of sale or digital media the latter are of special interest due to the growth of Internet penetration, the use of mobile devices and social networks.
It is important that brands and companies identify the type of logo.ee promotional strategies that are most attractive to consumers, since, as the data indicates, not all categories work the same among all target audiences.
A good promotion can increase sales between 5 and 15%. Here we show you the most common ones.
1. Discount Marked by the Own Product
It consists of selling temporarily at a lower price than normal, communicating it in the package itself: “10% discount”.
Strategy: It is the type of promotion that has the most direct effect on the consumer. It is widely used in the case of mature markets, in which there are few quality differences between competing brands.
To subtract aggression, it is usually linked to an event: company anniversary, the premiere of new packaging, etc.
For the consumer it is an excellent business, to obtain the same product for less money. The company allows you to increase the rotation of the product at the point of sale. When obtaining lower profitability, its duration must be limited.
2. Greater Product Content for the Same Price
There are two types of modalities here. On the one hand, the classic 3×2 promotion (buy three units of product and pay only two). Secondly, a package of greater size and content offered at the same price as the normal product.
Strategy: Recommended for items of frequent consumption, little differentiated and very competitive. It is also very useful for introducing new larger containers. Its objective is to conquer market share to the competition and then maintain that quota with the usual product.
For the distributor, it is an unattractive promotion, not being able to output the stock of the normal product. Like the previous one, it is also not advisable to have an excessive duration.
3. Complementary Products at a Lower Price
Like the previous two, this is the third type of price promotion. In this modality, the offer consists of offering two complementary products (milk + pastries, asparagus + mayonnaise, etc.) at a lower price than the sum of both.
Strategy: This promotion is widely used by companies that manufacture both types of products. In this way, the brand in question is reinforced. It is also very useful for the launch of a new product or a new container.
4. Coupons or Discount Vouchers
They are price reductions through vouchers and coupons, which are received in different ways: by mail, in magazines, personal delivery, etc. They usually have a certain period of validity.
Strategy: It has great commercial efficiency. The disadvantages: its high cost of distribution and the little sympathy that the channels show, given the procedures that it entails (collection by its staff and reimbursement of the discount by the manufacturer).
5. Samples and Tasting
The sample is the free delivery of small quantities of a product so that the consumer can try its logo, “logo gifts.” They can be obtained by mail, door to door, included in other products, etc.
On the other hand, the tasting consists of giving certain quantities of the product to be tested, usually at the place of purchase itself, or checking its operation lives.
Strategy: Very suitable for items that have a differentiated component that must be checked: dentifrices, food, soaps, cosmetics, etc. Used especially in launches it is a promotional technique that is often expensive.
6. Direct Gifts
Gifts attached to the container or inside the product. It can also be obtained by previously filling out a form.
Strategy: Recommended for products with low unit price, whose purchase is made frequently. The gift should never have an appeal superior to that of the product itself. It is recommended that they do not lengthen excessively in time.
Being a really prevalent sort of promotion, the present needs to have a certain imaginative touch to distinguish itself from the competition.
7. Deferred Gifts
The gift is achieved through the accumulation of a series of proofs of purchase: labels, barcodes, a cumulative point according to the volume of purchases, etc.
Strategy: It is usually very effective as the achievement of the prize is linked to the realization of a certain purchase volume. It also has great loyalty effects, as the consumer must relate to the brand for a certain period of time.
8. Competitions and Promotional Drawings
Raffles are games or combinations in which a prize is offered to randomly designated winners.
The contests, on the other hand, require a certain active participation of the consumer, which has to test their knowledge and skills of various kinds. In both cases, prizes from a certain entity are usually awarded.
Strategy: The ritual aspect of the draws (their publicity, the act of publication of the winners, etc.) causes an effect of mimicry in the public. This is the reason that explains the fact that many unusual consumers join the brand.
As for promotions through competitions, experts consider that the playful aspect and, in some cases, the spectacular nature of this modality produces a strong identification of the consumer with the brand.
9. Promotional Holidays
Organization of parties in which the main protagonist is a certain brand, which is the only one of its kind that is consumed during the celebration T-shirts, caps and other advertising gifts referred to the product you want to promote are also given.
Strategy: The type of game and animation actions that are developed must be consistent with the audience that is trying to conquer.
10. Joint Actions
In recent months, joint promotion campaigns have become fashionable. Two brands participate in them, with marketing objectives and similar public objectives.
Strategy: One advantage is that the promotion costs are shared among the participating brands. This allows them to advertise this operation in a big way. Another advantage is that each of the products is strengthened by the good image of the other.