Studocu 2 - Sales Promotion: Case Study PDF

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Sales Promotion: Case Study...

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Sales Promotion Management Britannia Khao World Cup Jao A Mega Contest from Britannia Industries Ltd. 1) Britannia Industries Limited Britannia Industries Limited (BIL) was established in 1918 as a small bakery in Dum Dum, Calcutta. It had become a household name in food products and the largest bakery in private sector in nineties. The company had its own manufacturing system in four major metros. In 1998-99, it had attained the turnover of Rs.10300 million compared to Rs.8478 million in previous year. Britannia launched Britannia Khao World Cup Jao Sales Promotion scheme in February 1999 to take advantage of Cricket enthusiasm in India (Cricket World Cup 1999) and serve certain business objectives. Corporate Objective: To build saliency of Britannia brands and to drive volumes with an expected 20% increase in sales. Marketing Objective & Strategy:  Brand Building: a comprehensive food & beverages company promoting Health and Nutrition  Increase in Volumes  Increase in Sale by 20% Sales Promotion Objective:  Compliance with marketing objectives.  Efficient utilisation of resources (Financial, Physical, Human Resource etc.) as Sales promotion programs have high total cost to company.  Being temporal in nature, results to be obtained within the promotion period.  Sales promotion should provide a source of competitive advantage to Britannia i.e. competence employed should be valuable, non-substitutable and non-imitable/costly to imitate. Sales Promotion Strategy Britannia employed the growth strategy based on market penetration, wherein, they planned to obtain a growth of 20% in sales, driven by Sales promotion with the same products, same market and new customers. It may be considered as a Protective strategy to achieve the following:  Hold existing market share  Gain additional market share  Brand Building

Based on the research, Britannia learned that the customer perception about the brand is of ‘CARING’ and relation to HEALTH. They also learned that the customers are health conscious across various demographic segments. Based on Health as the positioning platform, Britannia used the slogan "Eat Healthy, Think Better" for all its product packs and commercials to build their Brand Image and acquire additional market share and desired growth. The Cricket World cup provided an ideal opportunity to organise the mega contest. Target Group Britannia Khao World Cup Jao Program is targeted as both Consumer Promotion (Pull) and Trade Promotion (Push). The Promotion program has incentives for both the consumers and trade partners including retailers; however, the Sales Promotion is majorly skewed towards Consumer promotion. Budget  Britannia budgeted Rs.100 million on the Sales Promotion scheme (corresponding expected global budget was Rs. 1800 Million).  Britannia budgeted Rs.300 million for Advertisements (Corresponding expected global budget was Rs. 3200 Million). Product Lifecycle The Sales Promotion was a pre-planned and premeditated decision. It was a strategy to increase biscuit sales, which fall by nearly 30% every March . The company used the Cricket World Cup as an opportunity to boost sales and equity. Britannia included all its biscuit and cheese brands and pack sizes for the promotion. Competitor positions Britannia tried to target every possible segment of the Indian market eg. the urban consumer was targeted with premium priced trendy products while low priced affordable biscuit satches priced at Re.1 were made available to masses. In order to obtain a premium image for its dairy products without creating a barrier for Amul switchers, Britannia decided to peg a mild premium over Amul's prices e.g. a 400 gm tin of cheese was priced at Rs.5 more than that of Amul. Nature of Promotion: Price Vs. Value, Immediate Vs. Delayed In order to strengthen the brand and broaden the range, Britannia tried to cover several price points and consumer segments with a planned selection of products and respective prices for both rural and urban regions.

The Contest has incentives both immediate and delayed. The winners were given chance to exit the contest anytime. 

Immediate Benefit: The winners of prizes of TIGER CASHEW BADAM and CHEKKERS biscuits may give the coupons at Prize Centres and collect their prize on the spot. The booklets were available at retail outlets identified by BRITANNIA banners, specially designated as Prize centres. Customers can also mail their wrappers, totalling "100 runs" to receive the same through mail.

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Delayed Benefits: The winners of the TV, Cricket bat and Wrist watches were supposed to receive their prizes within 45 days of the receipt of their completed coupons. This was well communicated to the winners.

Product Scope: All products Vs. Selective products and inline Vs. Offline Every product of BIL was specially packed with the name of contest - BKWCJ and number of runs printed which varied across products e.g. cheese slice carried 80 runs while Marie biscuit pack carried 20 runs. This was an offline contest, wherein special packaging was used for all the products with the name of contest - BKWCJ and number of runs printed on the packet covers. Market Scope: National Vs. Local The offer is valid all over India, on all genuine Britannia products carrying the message "World Cup `99 Contest" on the offer packs with the number of "Runs" or points mentioned on the offer pack. The offer is open to all Indian residents except the employees of Britannia Industries Limited, Ammirati Puris Lintas, Kid stuff Promotions and their immediate family members. Britannia included its existing distribution network of 1400 distributors and 4 Lakh retailers (50:50 in Rural and Urban areas) in the Sales Promotion program. Tactics: Cricket in India is considered as a "Pervasive Nasha" - an addiction enfolding masses. Marketers have always viewed cricket as a golden opportunity to generate sales by playing upon this cricket mania. Twelve countries participated in this tournament. A total number of 5 Lakh physical visitors and 2 Billion TV audience were expected across the globe during the event. It was estimated that 300 million Indians would watch World Cup 1999 which could result in a boost of Rs.50,000 million to Indian economy.

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Frequency: The frequency of Cricket World Cup is four years, and hence, that of Britannia Kha World Cup Jao promotion program also. World Cup 1999 was a mega cricket event which was held in England.

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Duration: Strictly from February 1, 1999 to April 30, 1999. To make the sales promotion scheme successful, Britannia conducted a supporting Advertisement campaign to create the awareness about the scheme and brand building as a healthy product. The scheme was launched nearly a month before any other world cup related promotion. It was promoted heavily on T.V. with a humor appeal centred around cricket in daily activities like using wicket to make roti by housewife, laundryman ironing clothes on cricket pitch etc.

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Size (discount): Different scores of runs were given to different products, thereby, providing an opportunity to Britannia to tactically promote the brands/products, which were less sold/less popular....