The Logic Of Consumer Promotions
Consumer promotions can drive short-term excitement and sales but risk diluting brand equity if overused. Smart marketers use them tactically—to enhance imagery, bridge perception gaps, or offer genuine value.
Consumer promotion is the one gift from the marketing team that the sales function really looks forward to! As an Area Sales Manager based out of Vijayawada in 2005, I used to really look forward to the Chopper Promo, Bayblade Promo, etc. that the Bournvita brand would sport once a quarter. In that month we would do 60% of the quarter's volumes and the sales team and the trade would really look forward to the same.
And then I was shocked when our new Managing Director, Anand Kripalu decided to put a stop to a practice that had been a norm in the category for over a decade. And sitting in Andhra Pradesh where we had a sub-10% Market share, we found our hearts sinking.
However, Anand, was adamant that one less promo every quarter meant far more money for thematic adverting, and as a Sales guy then I didn’t agree with him at all! By the end of the year, I had to grudgingly accept that the strategy appeared to work and we gained share. But are Consumer promos necessary and evil or do they have relevance in the armory of a marketer?
Strategic Rationale
As I have often…
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