PROMOTION

MENU
Dictionary of all PROMOTION TYPES
applied at Multi-National Companies

1
 N
GUIDELINE

.
Promotion definition

V
K
The Trend for Promotion

S
Promotion Role

A
5C Foundation for Promotion planning

C
Promotion objectives

Promotion Types
 N
PROMOTION is a temporary set of activities or event
that [disrupts the Purchase Decision Hierarchy and]

V
incentivises Shoppers/Customers to make a change from

.
normal purchase behaviour towards a specific category or
product.

WHAT IS
S K
A
PROMOTION WIN
SHOPPER
WIN
CUSTOMER
WIN
SALE FORCE

PROMOTION MENU | PAGE 3 C Notes:

▪

▪
Usually price based but can be based around other types of incentive (free
gifts etc)
Category Promotion advice is always within Legal Guidelines at a category/
sub-category/ segment level
 N
From MANAGED SPEND to OPTIMIZED INVESTMENT

V
HOPE with EXPECTATION

.
Replacing

K
Finding a PROFITABLE BALANCE

S
PROFITABLE GROWTH begins with STRATEGIC CHOICE
WHAT IS Journey to

A
TREND FOR

“C
PROMOTION GREAT PROMOTION give us the conversion but
sustainable, profitable & predictable growth.

PROMOTION MENU | PAGE 4

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K.
S
PROMOTION

A
ROLES Help

C
One of DIFFRENTIATE Improve
6Ps in PRODUCT DISTRIBUTION
MARKETING MIX in competitive
environment

PROMOTION MENU | PAGE 5

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5C FOR PROMOTION PLANNING

. V
C COMPANY C CUSTOMER / CHANNEL

S K
A
CATEGORY

C CONSUMER / SHOPPER

C C COMPETITION

PROMOTION MENU | PAGE 6

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PROMOTION
K.
S
OBJECTIVES
& TYPES
C A TÌM HIỂU KHÓA HỌC
PROMOTION
 N
Profitable
Growth

. V
PROMOTION
Increase Sales Reduce Costs &
Optimise Margin

K
OBJECTIVES Penetration Frequency
Basket
Spend
€ Sales % Margin € Profit
Operation
al Costs
Net €
Profit

S
All Promotion type
need to based on

A
Customer’s Equation
Get Increase Decrease
to help them drive Attract
More shoppers to Share of
Increase
Transaction Operation
profitable growth … Shoppers buy more Household Profit Expenses
often spending

C
(increase the (decrease
Profit of cost of
FOR INCREASE BIGGER each Handling)
CUSTOMER PURCHASE BASKET Basket)
& RATE
COMPANY

PROMOTION MENU | PAGE 8

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Profitable
Growth

. V
PROMOTION
Increase Sales Reduce Costs &
Optimise Margin

K
OBJECTIVES Distribution
Weighted
&
Frequency
Assortment
Value
€ Sales % Margin € Profit
Operation
al Costs
Net €
Profit

S
…. and also need to
totally aligned with the

A
Company (Category) Build up Get Retailer Increase Increase Decrease
growth Strategy More Net to buy more portfolio in Transaction Operation
work to often & each RTLs Profit Expenses
More Value

C
distribute
product per Order
(increase the (decrease
Profit of cost of
FOR each Handling)
COMPANY INCREASE BIGGER Basket)
& WEIGHTED RANGE
CATEGORY STORE

PROMOTION MENU | PAGE 9

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Promotions will be more effective if we are clear about who we want to target
and which of the four possible shopping behaviour changes we desire:

WHAT ARE

. V
Grow Category
or Brand Value

K
PROMOTION
EFFECTIVENESS

S
1. Recruit New Get Existing Buyers to
Buyers (penetration) spend more

OBJECTIVES

A
1. Target Shoppers 2. Purchase more

C
Spend more each visit
Frequently
2. Target Shopper Behaviour Change

3. Target Source of Revenue

3. Purchase more 4. Trade Up £ per

Volume per visit Unit volume
PROMOTION MENU | PAGE 10
 MARKETING
N
OBJECTIVES
INCREASE PURCHASE PURCHASE MORE TRADE UP
PENETRATION MORE FREQUENTLY VOLUME/ VISIT PER UNIT VOLUME

. V
K
▪ Attract competitive

PROMOTION
▪ Defend against ▪ Increase value/ ▪ Convert current

OBJECTIVES
users competitor launch basket from users to higher
▪ Attract non-category ▪ Reward loyal occasional buyers value product.
users consumers

S
▪ Attract lapsed users

PROMOTION

A
TYPE ▪
▪
Sampling
Demonstration
▪ Money off next
purchase
▪
▪
BOGOF
Multi-buy
▪
▪
Premium
New uses

C
▪ Display ▪ CPP ▪ CPP ▪ Display
PROMOTION

▪ Trial size ▪ Collector scheme ▪ Extra fill ▪ Chance to win

Trial price
TYPES

▪ ▪ Reusable container ▪ Multipack

▪ Try me free ▪ Display ▪ Linksave
▪ Banding ▪ Store card points ▪ Display
▪ Member get member ▪ Chance to win ▪ Store card points
▪ Store card points ▪ Member clubs ▪ Chance to win
TÌM HIỂU KHÓA HỌC ▪ Chance to win
PROMOTION
 N
1. Sampling

V
2. Demonstration

.
3. Display

K
4. Trial size

5. Trial price

S
INCREASE 6. Try me free

A
PENETRATION
7. Banding

C
8. Member get member
PROMOTION TYPES
9. Store card points

10. Chance to win

PROMOTION MENU | PAGE 12

 SAMPLING

N
An activity that creates the opportunity for a
potential consumer to test a product before

V
buying it. Samples are usually a smaller amount of

.
product given directly to the consumer for on-the-
spot consumption & usually meant to entice
customers to buy the product. Sampling can also
be done through distribution to potential

K
consumers at home, work or recreation. This is on
in/on-pack sampling.

S
Xem video

INCREASE

A
PENETRATION DEMONSTRATION

C
PROMOTION TYPES A physical demonstration of how to use &
enjoy a product in such a way that potential
consumers get to experience the product & it’s
benefit/s firsthand without purchase risk.

Xem video
PROMOTION MENU | PAGE 13
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DISPLAY

. V
An attractive visual feature (in-store or at a
relevant event) that attracts consumer attention to
the product & entices them to try it. The display
should generally always include the physical pack.

INCREASE
S K
A
PENETRATION

C
PROMOTION TYPES

PROMOTION MENU | PAGE 14

 Mẫu thử các loại nước hoa

V N
K.
S
INCREASE

A
PENETRATION

C
PROMOTION TYPES TRIAL SIZE
Xốt kho tộ vàng Maggi A smaller version (with exact same product) of the
chai dùng thử 150g. regular pack that is sold for a lower unit price to
Giá chỉ 6.000 VND entice potential consumers to experience a
product at a low-cost purchase risk.

PROMOTION MENU | PAGE 15

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TRIAL PRICE
A reduced introductory price offer on a new

V
product (not a price reduction on a regular item).

K.
S
INCREASE

A
PENETRATION

C
PROMOTION TYPES

PROMOTION MENU | PAGE 16

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TRY ME FREE

.
A stand-alone or item-combination package that is
given away for free to allow potential consumers
to try a product.

INCREASE
S K
A
PENETRATION

C
PROMOTION TYPES

PROMOTION MENU | PAGE 17

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K.
S
INCREASE

A
PENETRATION BANDING

C
A package, bound together with a branded
strip, of your regular product and another
PROMOTION TYPES relevant item of perceived value to entice the
potential consumer to purchase.

PROMOTION MENU | PAGE 18

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MEMBER GET MEMBER

V
A campaign to get existing members to find
new members in return for a reward.

K.
S
INCREASE

A
PENETRATION

C
PROMOTION TYPES

Xem video ví dụ chương trình

của Vodafone
PROMOTION MENU | PAGE 19
 N
STORE-CARD POINTS

V
A store/chain specific loyalty card where

.
by consumers accrue points for spending
which can then be redeemed against a
prescribed list of gifts or benefits that are
enticing enough to generate trial of an

K
unknown product. Should not to be
confused with store-linked credit cards.

S
INCREASE

A
PENETRATION

C
PROMOTION TYPES

PROMOTION MENU | PAGE 20

 CHANCE TO WIN

N
A contest, sweepstake or game which creates consumer
involvement with a brand or product and thus encourages
consumption of the product. They can include single-entry

V
or multi-entry sweepstakes, instant win, match and win,

.
collect and win, trivia sweepstakes, educational
sweepstakes and even evaluation contests. Prizes can
range from one big prize to many small or a combination
of both. Local regulations could apply. Can be used to

K
gather contact details for future activities.

S
INCREASE

A
PENETRATION

C
Tìm mã dưới nắp chai, nhắn tin đến tổng đài
PROMOTION TYPES có cơ hội trúng thưởng

COCA COLA COOPERATES WITH

VINAPHONE

PROMOTION MENU | PAGE 21

 N
1. Money off next purchase

PURCHASE
.V
2. CPP

K
MORE
3. Collector scheme

S
4. Reusable container

FREQUENTLY 5. Display

A
PROMOTION TYPES
6. Store card points

C
7. Chance to win

8. Member clubs
TÌM HIỂU KHÓA HỌC
PROMOTION
PROMOTION MENU | PAGE 22
 N
MONEY OFF NEXT PURCHASE

V
Is generally given as a voucher and
gives the customer extra value, but

.
PURCHASE
only when they buy more product or
repeat purchase. It encourages long-
term customer loyalty, since customers
need to make repeat purchases to get

K
MORE
a discount. The disadvantages are
similar to other money off promotions
in that competitors can easily imitate
them and they do little to strengthen

S
FREQUENTLY
branding or differentiate your product.

A
PROMOTION TYPES

PROMOTION MENU | PAGE 23 C

 N
CPP

V
A consumer price promotion (used to be part of

.
PURCHASE
what was called TPR) that is communicated to
the consumer via the pack, POS and/or other
communication. Is it not a trade price reduction.
It shouldn’t persist for longer than 2 months.

K
MORE
Coupons are a common vehicle for CCPs.

S
FREQUENTLY

A
PROMOTION TYPES

PROMOTION MENU | PAGE 24 C

 N
COLLECTOR SCHEME

The consumer collects multiple proofs of

V
purchase in order to get a larger reward than
they would qualify for with a single proof of

.
PURCHASE
purchase. This “locks in” the consumer to the
brand for an extended period of time. Normally
used by established brands, the strategy is to
avoid consumer brand switching and, for the

K
MORE
right product can encourage pantry loading &
increased frequency of purchase. The number of
proofs of purchase that are requested must be
appropriate to the product so as not to

S
FREQUENTLY
discourage initial participation.

A
PROMOTION TYPES

PROMOTION MENU | PAGE 25 C

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.
PURCHASE REUSABLE CONTAINER

K
MORE The regular product is sold, often at the same
price or a slight premium, inside a branded

S
FREQUENTLY
reusable container. Advantages are that the
container would be customised, through size and
shape, to your own product & would achieve in-
home branding and purchase prompting.

A
PROMOTION TYPES

C
Chương trình đổi 5 chai
Lavie cũ lấy 1 chai Lavie mới

PROMOTION MENU | PAGE 26

 N
MEMBER CLUBS

V
A program designed to enhance brand loyalty by
cultivating an ongoing relationship between a marketer

.
PURCHASE
and his customer. Successful loyalty programs encourage
the consumer to buy frequently, to increase the amount
spent each time, and to concentrate all or most of their
related purchases on that brand. Most loyalty programs

K
offer perks for membership in a club or program and

MORE reward purchases. Rewards may be based on money value

of purchases made or on the frequency of purchases (eg
airline frequent-flyer programs) Loyalty program tactics

S
also include regular communication with customers such

FREQUENTLY as reminder mailings, private credit cards, cross-sell and

up-sell offers, satisfaction and opinion surveys, and
collection of information for member databases.

A
PROMOTION TYPES

PROMOTION MENU | PAGE 27 C

 N
1. BOGOF

V
2. Multi-buy

.
PURCHASE 3. CPP

K
MORE 4. Extra fill

S
FREQUENTLY 5. Multipack

A
PROMOTION TYPES 6. Linksave

C
7. Display

8. Store card points

9. Chance to win TÌM HIỂU KHÓA HỌC

PROMOTION
PROMOTION MENU | PAGE 28
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.
PURCHASE

K
MORE

S
VOLUME BOGOF

A
PER VISIT “Buy one get one free” is two units of the same pack

C
for the price of one. This offers much the same
PROMOTION TYPES advantages as more product / same price offers, with
the added benefit that packaging does not require
modification. The main drawback is its potential
negative impact on retailer and manufacturer
profitability and can be easily & quickly copied.

PROMOTION MENU | PAGE 29

 MULTI BUY

N
A volume building package that contains more than
two items (often different variants of the same

V
product eg Walkers crisps) of the same product sold
at a reduced price to the unit equivalence.

.
PURCHASE

K
MORE

S
VOLUME

A
PER VISIT

C
PROMOTION TYPES

PROMOTION MENU | PAGE 30

 V N
.
PURCHASE

K
MORE

S
VOLUME EXTRA FILL

A
PER VISIT Extra product at the same price or a slight premium. One advantage is
that it only costs the manufacturer the additional raw material (if same

C
pack) but the consumer feels the full benefit as if it had been supplied at
PROMOTION TYPES the purchase price. This offers customers added value for their money,
encouraging brand switching. Another advantage is that competitors
usually can’t imitate them quickly although modifying packaging can be
expensive, impacting both manufacturer and retailer profitability. It can
also be difficult for customers to see added value when they are
comparing different package sizes. These promotions do not strengthen
branding or differentiate your product in the long-term.

PROMOTION MENU | PAGE 31

 N
MULTI PACK

V
A package that contains more than two items of the
same product (eg 6-pack of cola) sold at a reduced

.
PURCHASE
price to the unit equivalence.

K
MORE

S
VOLUME

A
PER VISIT

C
PROMOTION TYPES

PROMOTION MENU | PAGE 32

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.
TRADE UP 1. Premium

K
PER UNIT 2. New uses

S
VOLUME 3. Display

A
PROMOTION TYPES 4. Chance to win

PROMOTION MENU | PAGE 33 C TÌM HIỂU KHÓA HỌC

PROMOTION
 N
PREMIUM

V
The inclusion of an item, with the purchase of your regular product, that has a significant perceived value
that would entice a consumer to buy more volume of the product that they already use.

.
TRADE UP

K
PER UNIT

S
VOLUME

A
PROMOTION TYPES

C
UPGRADE USERS

PROMOTION MENU | PAGE 34

 N
NEW USES

V
In/on-pack promotion of alternative uses/occasions where the product

.
TRADE UP
can be consumed (eg Knorr recipe ideas)

K
PER UNIT

S
VOLUME

A
PROMOTION TYPES

PROMOTION MENU | PAGE 35 C

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APPENDIX
K.
S
SUMMARY

A
Of Promotion Types

C TÌM HIỂU KHÓA HỌC

PROMOTION
 PENETRATION (Trial)

N
Marketing Objective:
Promotion Types & Descriptions

V
TYPES DESCRIPTION

.
Sampling An activity that creates the opportunity for a potential consumer to test a product before buying it. Samples are usually a smaller amount of product given
directly to the consumer for on-the-spot consumption & usually meant to entice customers to buy the product. Sampling can also be done through distribution
to potential consumers at home, work or recreation. This is on in/on-pack sampling.

K
Demonstration A physical demonstration of how to use & enjoy a product in such a way that potential consumers get to experience the product & it’s benefit/s firsthand
without purchase risk.

Display An attractive visual feature (in-store or at a relevant event) that attracts consumer attention to the product & entices them to try it. The display should
generally always include the physical pack.

S
Trial Size A smaller version (with exact same product) of the regular pack that is sold for a lower unit price to entice potential consumers to experience a product at a
low-cost purchase risk.

Trial Price A reduced introductory price offer on a new product (not a price reduction on a regular item).

A
Try Me Free A stand-alone or item-combination package that is given away for free to allow potential consumers to try a product.

Banding A package, bound together with a branded strip, of your regular product and another relevant item of perceived value to entice the potential consumer to
purchase.

C
Member get member A campaign to get existing members to find new members in return for a reward.

Store card points A store/chain specific loyalty card where by consumers accrue points for spending which can then be redeemed against a prescribed list of gifts or benefits
that are enticing enough to generate trial of an unknown product. Should not to be confused with store-linked credit cards

Chance to win A contest, sweepstake or game which creates consumer involvement with a brand or product and thus encourages consumption of the product. They can
include single-entry or multi-entry sweepstakes, instant win, match and win, collect and win, trivia sweepstakes, educational sweepstakes and even evaluation
contests. Prizes can range from one big prize to many small or a combination of both. Local regulations could apply. Can be used to gather contact details for
future activities.

PROMOTION MENU | PAGE 37

 FREQ OF CONSUMPTION/PURCHASE

N
Marketing Objective:
Promotion Types & Descriptions

. V
TYPES DESCRIPTION
Money off next purchase Is generally given as a voucher and gives the customer extra value, but only when they buy more product or repeat purchase. It encourages

K
long-term customer loyalty, since customers need to make repeat purchases to get a discount. The disadvantages are similar to other money
off promotions in that competitors can easily imitate them and they do little to strengthen branding or differentiate your product.
CCP A consumer price promotion (used to be part of what was called TPR) that is communicated to the consumer via the pack, POS and/or other
communication. Is it not a trade price reduction. It shouldn’t persist for longer than 2 months. Coupons are a common vehicle for CCPs.

S
Collector scheme The consumer collects multiple proofs of purchase in order to get a larger reward than they would qualify for with a single proof of
purchase. This “locks in” the consumer to the brand for an extended period of time. Normally used by established brands, the strategy is to
avoid consumer brand switching and, for the right product can encourage pantry loading & increased frequency of purchase. The number of
proofs of purchase that are requested must be appropriate to the product so as not to discourage initial participation.

A
Reusable container The regular product is sold, often at the same price or a slight premium, inside a branded reusable container. Advantages are that the
container would be customised, through size and shape, to your own product & would achieve in-home branding and purchase prompting.
Member clubs A program designed to enhance brand loyalty by cultivating an ongoing relationship between a marketer and his customer. Successful loyalty
programs encourage the consumer to buy frequently, to increase the amount spent each time, and to concentrate all or most of their related

C
purchases on that brand. Most loyalty programs offer perks for membership in a club or program and reward purchases. Rewards may be
based on money value of purchases made or on the frequency of purchases (eg airline frequent-flyer programs) Loyalty program tactics also
include regular communication with customers such as reminder mailings, private credit cards, cross-sell and up-sell offers, satisfaction and
opinion surveys, and collection of information for member databases.

Display, Store-card points, Chance to win

PROMOTION MENU | PAGE 38

 N
Marketing Objective: VALUE OF CONSUMPTION/PURCHASE
Promotion Types & Descriptions

. V
TYPES DESCRIPTION
BOGOF “Buy one get one free” is two units of the same pack for the price of one. This offers much the same advantages as more product / same price

K
offers, with the added benefit that packaging does not require modification. The main drawback is its potential negative impact on retailer
and manufacturer profitability and can be easily & quickly copied.
Multi-buy A volume building package that contains more than two items (often different variants of the same product eg Walkers crisps) of the same
product sold at a reduced price to the unit equivalence.

S
Extra fill Extra product at the same price or a slight premium. One advantage is that it only costs the manufacturer the additional raw material (if same
pack) but the consumer feels the full benefit as if it had been supplied at the purchase price. This offers customers added value for their
money, encouraging brand switching. Another advantage is that competitors usually can’t imitate them quickly although modifying packaging
can be expensive, impacting both manufacturer and retailer profitability. It can also be difficult for customers to see added value when they

A
are comparing different package sizes. These promotions do not strengthen branding or differentiate your product in the long-term.
Multipack A package that contains more than two items of the same product (eg 6-pack of cola) sold at a reduced price to the unit equivalence.

C
Link save A value added mechanism where consumers buy one product and get another related item for a discount or free eg buy a Walkers Sensations
Poppadoms and get a Walkers Sensations Mango dip free or people buying The Sunday Times will get € 1 off a promoted book).

Display, CCP, Store-card points, Chance to win

PROMOTION MENU | PAGE 39

 N
Marketing Objective: TRADE UP PER UNIT VOLUME
Promotion Types & Descriptions

. V
TYPES DESCRIPTION

K
Premium The inclusion of an item, with the purchase of your regular product, that has a significant perceived value that would entice a consumer to
buy more volume of the product that they already use.

New uses In/on-pack promotion of alternative uses/occasions where the product can be consumed (eg Knorr recipe ideas)

S
Display, Chance to win

C A PROMOTION MENU | PAGE 40

 N
All Types of Promotion mentioned in this document are defined

V
in Shopper-centric Approach.

.
HOW ABOUT

K
PROMOTION TYPES IN

S
CUSTOMER-CENTRIC APROACH?

A
To explore more about PROMOTION
in Trade Marketing, please CLICK:

C
TÌM HIỂU KHÓA HỌC PROMOTION

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