Salespromotion of a biscuit fudge

Contents

1. INTRODUCTION
GENERAL OVERVIEW

2. PRIZE PROMOTION – SINGLE BAR – BUDGET £700.000
DESCRIPTION
PRIZE CATEGORIES
Mobile Phones
Computer Game
Free Fudge
HANDLING
MISCELLANEOUS
FORECASTING AND REDEMPTION CONTROL
BUDGET PLAN

3. PRODUCT PROMOTION – MULTIPACKS – BUDGET £800.000
DESCRIPTION
HANDLING
MISCELLANEOUS
FORECASTING AND REDEMPTION CONTROL
BUDGET PLAN

4. PRICE PROMOTION – MULTIPACKS – BUDGET £800.000
DESCRIPTION
MISCELLANEOUS
Prize categories
HANDLING
FORECASTING AND REDEMPTION CONTROL
BUDGET PLAN

5. TRADE PROMOTION – SINGLE BAR – BUDGET £700.000
DESCRIPTION
HANDLING
FORECASTING AND REDEMPTION CONTROL
BUDGET PLAN

6. FREDDY FUDGE WEB-PAGE
DESCRIPTION

7. APPENDIX
LEGAL – TERMS AND CONDITION
BIBLIOGRAPHY

1. Introduction

This Report should give the reader an overview of sales promotion techniques and outline an annual promotion plan of McCarties Plc, a fudge manufacturer, as an example. Furthermore the essay will outline objectives and strategies for several promotions intended to show how to increase market share and influence buyers behaviour.

General overview

The biscuit and confectionery business is well developed in the UK. The British population has spent about £1.6 billion p.a. on biscuits and £3.8 billion p.a. on chocolate confectionery (1999). This works out at 199g of biscuits and 280g of chocolate per head per week.

This year’s sales promotions are running under the theme “Freddy Fudge and his Friends” and will be closely linked with the TV commercials.

There will be four major promotions (price, prize, product and tailored) which are designed for single bar and multipacks. Each of them will deal with Freddy Fudge in some way and try to implement him as a “cult figure”. Another objective is to increase the awareness of the web page. All promotions are supported by point-of-purchase-displays and POP-materials including items such as outside signs, window displays, counter pieces and display racks.

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2. Prize Promotion – Single bar – Budget £700.000

The main objective: increasing volume

The promotion will be launched from mid January to mid March and will be focused on pupils between 9 and 15 years old. To increase volume the promotion offers a free draw. The timing is set because after Christmas most shops want to clear stock and are therefore willing to give an extra discount and improve prices.

Yeshin (1998) points out that the offer of a substantial prize fund in cash or merchandise is likely to attract the attention of the potential consumer. However, set against the sales volume, the costs of such activities are relatively low.

Description

The Principle in this prize promotion is “Instant Win”. This is a very good generator to encourage customers to buy your product instead of your competitor’s. Every child knows when he is eating his fudge whether or not he has won. There are reasonable chances for everybody to win as there are some 1.060.000 prizes. The wining message will be printed on the inside of the package of the single bars. It therefore follows that it must be opened before a winner can be known. Additionally it is not possible just from looking at the wrapper of the bar from the outside what the hidden slogan inside might be. In this way there is no possibility of cheating.

Prize categories

To attract teenagers there will be three prize categories which suit their tastes:

Mobile Phones

First category is mobile phones. There will be a joint promotion with Vodafone for several reasons. Firstly we can use their good brand image and link it with our product. Secondly we will get the phones at a discount and thirdly Vodafone want to empty their stocks after Christmas to have space for new products and we will get an even better discount. The mobile phones will have a unique changeable “Freddy Fudge” cover which is not available in stores and therefore a must for everybody who wants to be “in”. Mobile phones should be attractive for youngsters in the age range of 12-15 years.

Computer Game

For the second prize a software company will develop “The Freddy Fudge computer game”. It is a Jump and Run game, where the player is in the role of Freddy who has to collect fudges for his friends. His mates are hidden in a classroom and guarded by their teacher. Freddy’s aim is to survive all stages, to collect as much fudges as possible, to fight against the teacher and free his friends.

This prize should be attractive for pupils between 9-13 years who play computer games already.