Sodas are one of the most popular drinks among the teenagers. It has become a staple drink for most teenagers, drinking them almost everytime they eat. But teenagers or soda drinkers in general also tend to be loyal to their preferred brand, making them hard to switch to a different or upcoming brand.
I have chosen to test the following sales promotions in finding out which ones will be effective to stimulate purchase. 1. Bundling. For a limited time period, I will be offering bundling activities for the new product.
There will be two types: Buy one, take one, wherein you take another extra soda in one purchase, and the other, buy five, get a free cool wristwatch which encourages multiple products in one purchase. 2. Coupon. A coupon will be part of the brochures distributed in the supermarket or in the internet. The customer brings the coupon to the retail store for a 50% discount on the purchase.
Again, this will be done for a limited only. 3. Straight Discount. A straight discount will be offered in the supermarket. The product will be offered at 50% off as its introductory price.
4. Product Sampling/Taste Test. Sampling stations will be set up in major supermarkets so that people get to taste the product. Results The questionnaires were distributed to 20 teenage respondents.
Among the proposed sales promotions activities, bundling has the highest percentage of encouraging purchase. For those who are purchasing for just themselves, the Buy One, Take One bundle works well. But for those who are buying for the whole family, the Buy Five, Get a Free Cool Wristwatch works very well because the free item is attractive, and everyone in the family gets to taste the soda. Straight discount comes in next, because teenagers get to try the product at 50% off as its introductory price.
It inhibits purchase especially for teenagers whose allowance is on a budget. They get to taste a new product, at a very cheap price. Product Sampling or Taste Test is the third most effective sales promotion, especially if it will be done in schools or shopping centers where teenagers frequent. The product should taste very good though, otherwise people will not purchase it anymore. The last one is the Coupon. Although it may be effective for other products, it does not work well for sodas with teenagers as the target market.
Teenagers mostly buy by impulse, and if they get a coupon where the product is not available (coupon coming from a brochure or daily paper read at home), chances are, they will forget about it. Recommendations The success of a new product is highly dependent on its marketing and sales promotions efforts. From this activity, we have determined that there are some activities that work well for a particular target market, and there some that does not work. For bundling activities, straight discount and coupons, it is important to only offer these promotions for a limited time only to inhibit immediate purchase and to send the message of urgency. Offering this for a long time may also affect the brand image of the product, with the customers perceiving it as a cheap brand.
For product sampling, this can be done for a longer period of time, in different venues. This will widen the reach of the market, and will enable the consumers to have a taste of the product without necessarily purchasing it first. References Arens, W. (2005). Contemporary Advertising. McGraw Hill, pp.
325-328 Chapter 18, Promotion Process, Sales Promotion and Publicity, Class Notes. Retrieved April 3, 2007 from http://www.udel.edu/alex/chapt18.html Uva, W.
F. (2000). Develop a Successful Promotion Program. Smart Marketing Newsletter.
