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S. Ramesh Kumar

Promotional activities are an important component of marketing strategy, and marketers must take special care to see that they mesh with the long-term objectives.

FORMULATING marketing strategy is a dynamic process as continuous planning is required amid intensive competition. An important element of marketing strategy is the promotional plan and marketers have to carefully plan promotional activities taking into consideration the objective of advertising at a given point of time, synergy of advertising with other promotional elements such as sales promotion, point-of-purchase posters, event triggers and even personal selling (wherever it is appropriate). While advertising receives a considerable degree of attention, a brand's managers also have to focus on what the brand aims to achieve through a campaign over a specific time period. Lack of attention to promotional linkages may affect the brand in the long run. In a number of product categories such as soft drinks, cosmetics, soaps, two-wheelers, apparel and durables continuous visibility is required, though bouts of intensive advertising may be required during specific periods, to keep the brand in the consideration set of consumers.

Promotional objectives and brands

While there are a number of research methods available to measure the effectiveness of advertisements, there has to be a certain conceptual direction that would enable marketers to formulate the objectives of advertising (for a given campaign).

An established brand with a large base of consumers should ensure that the brand is kept within the `consideration set' of current users, make sure that non-users of the brand try the brand and also that there are trials from consumers who use competing brands. There are three objectives in this situation and it may not be worthwhile having three campaigns running simultaneously. Besides the cost aspects, too much diversity in the execution of the campaigns may confuse consumers. An important point to note in a situation of this kind is that the brand in question is an established one and is likely to carry certain associations that need to be preserved whatever be the promotional linkages.

Symbolic promotional plans

The accompanying table considers three established brands — Cadbury's, Colgate and Surf (variants could also be considered with appropriate changes in strategies). There are also four factors associated with consumer behaviour — priority in terms of usage of the product category/brand, the type of buyer, the influence of purchasing power on the selection of the brand and the scope for sales promotion. Each of these factors could be considered with the respective brand to analyse the promotional linkages.

For instance, if chocolates are considered, they are impulsive purchases and consumers would like to associate themselves with the brand imagery. The brand could probably decide on a contest revolving around enjoyment, fun, excitement and symbolic associations (associated preferably with sports or film celebrities). For example, for a given number of wrappers there could be a range of prices offered. The wrappers could be enclosed with a short story associated with the fun and adventure experiences of the consumer. A celebrity could also be roped in to meet a few contestants who qualify on certain parameters. This type of contest reinforces the brand association and also serves the promotional objectives stated earlier.

Consumers have `something' to look forward to and there is also an opportunity given to them to articulate their experiences associated with the brand. This is not to suggest that the typical sales promotion — more for same price or `one free' with a purchase — should never be done. It is suggested in such product categories that established brands could often introduce sales promotion schemes that enhance and nurture brand associations that are already present in the consumer's psyche. There is also one more aspect involved in this kind of promotional strategy. There is a strong word-of-mouth element involved and this is likely to be very useful for promotional aspects involving symbolic aspects. The word-of-mouth is just not limited to the `value' one gets, it assumes several dimensions which may appeal to the group which discusses the contest. The celebrity association also encourages word-of-mouth. An occasional event — the same celebrity launching a variant of the brand if found suitable for the target segment — may also be in sync with the promotional plan. In a category associated with symbolism (taste in this example may be the basic motivating factor) managing the symbolism may be important in sustaining the association the brand may have with consumers to the extent that it may propel non-users and `competitive brand users' to stick with the brand.

Value-based promotional plans

Toothpastes and detergents are need-based categories and value may be strongly associated with the quantity and extra units given by the way of sales promotion. There is also a clutter of communication from a number of brands that compete in the category. Some of the brands such as Close Up in toothpastes may also be amenable to symbolic promotional campaigns. There may be a large number of consumers who are price-sensitive and who are interested in the brand only as long as sales promotion is continued. One approach in this context is to have continuous advertising that features user imagery — focusing on the consumer who may use the category. Generally for detergents the imagery has the housewife as its core element (Rin, Surf, Nirma). Surf a few years ago created a `character' - Lalithaji, the stereotype of a typical middle class housewife. The TV ad showed the hard-core bargainer choosing the brand, as it was oriented towards high value (because of lower usage apart from cleaning action).

When a stereotype of this kind is strongly associated with a brand (the stereotype is the meaning of a typical housewife in the mind of the target segment), an occasional sales promotion is likely to add to the `value' created by the advertisement. This is because `value' of the offering is built into the core values of the brand and a sales promotion may be perceived as a `plus'. This could be very useful when the brand is competing with brands that focus only on cleaning action. The event trigger could involve having the model in a contest that could be held at different geographical locations. The `common man' commercial involving the `stereotype' model slowly builds up the credibility of the brand and the model herself could have a reference group impact on the target. An event of this kind attempts to extend the `stereotype' created by the commercial.

In the case of toothpastes, Pepsodent is an interesting example that illustrates the power of promotional linkages. Initially, the brand advertised a very focused proposition — prevention of germs/cavity and related aspects. It also used effective imagery of having children in its TV commercials. There were also promotional efforts to create awareness about the brand (like merchandising and so on). The advertisements highlighted the need for an offering of this kind among a well-defined target segment. At a later point, the marketers brought in the buyer of the brand (the mother) and created a TV commercial in which a child gets a tongue lashing for eating snacks on his way to school. The advertisement ends with the assurance of Pepsodent. The `snack' theme involved would appeal to the `mother' (buyer) because it is almost a part of the Indian culture especially among the typical middle class. A `discount' or any other sales promotion introduced by the brand is likely to push the `price' factor to the background and the brand is likely to be closely associated with the benefit. Essentially, the advertising campaign has laid the foundation for sales promotional campaigns preserving the USP of the brand.

Promotional aspects and new brands

A new brand (with a new product concept) has to follow a different approach towards promotional elements. National is a brand of rice cooker. The concept of the rice cooker would have to be sold before a sales promotion could be announced with another durable (the brand had a tie-up with another durable). While the brand's objective may be to reach several households to spark off trials (usage of the product), a careful analysis of the perception of consumers is required in such a situation. A new brand, especially one which pioneers a new concept, would do well to involve consumers at the retail outlets through the demonstration of the product. In fact, promotional elements should be oriented towards building up traffic at retail outlets. Point-of-purchase posters at several outlets explaining usage of the product would also help. TV commercials could create awareness about the product and if the brand is a known one, though new to the category, advertisements could also reassure consumers based on the trust associated with the brand.

Hindustan Lever came out with a campaign that created awareness about deodorants when it introduced Rexona. The market for deodorants has grown to a significant extent in the last five years. Trial discounts should never create a perception among consumers that the company is resorting to price-cutting as a desperate measure. This is very important, especially in niche products such as electric shavers.

In consumables/ FMCGs, an extended campaign creates awareness and trials. There are two kinds of segments with regard to FMCGs, which may react differently to different promotional approaches. The lower end of the market may try out the brand if a sales promotion is introduced. Regional brands of detergents could try this approach. If there is a brand for the higher end of the market, advertising through appropriate media vehicles could probably be useful.

While certain approaches have been suggested for formulating promotional plans, there is a need to explore the perception of consumers associated with product categories and brands before deciding on promotional strategies. Advertising, linked with several other promotional elements would provide a strong value for marketers especially during times of `down-trading' by consumers across product categories.

(The author is Professor of Marketing, Indian Institute of Management. Feedback can be e-mailed to bleditor@thehindu.co.in)

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