Thursday, February 27, 2014

Promotional strategies for new business

Promotion is an important part of any marketing strategy. You can have the best product or service out there, but unless you promote it successfully, no one will know about it. There are three basic types of promotional strategies – a push strategy, a pull strategy or a combination of the two. In general, a push strategy is sales oriented, a pull strategy is marketing-oriented and a push-pull strategy is a combination of the two.
Promotional strategies are of two type

Push Strategy

A push promotional strategy works to create customer demand for your product or service through promotion: for example, through discounts to retailers and trade promotions. Appealing package design and maintaining a reputation for reliability, value or style are also used in push strategies. One example of a push strategy is mobile phone sales, where manufacturers offer discounts on phones to encourage buyers to chose their phone. Push promotional strategies also focus on selling directly to customers, for example, through point of sale displays and direct approaches to customers.

Pull Strategy

A pull promotional strategy uses advertising to build up customer demand for a product or service. For example, advertising children's toys on children's television shows is a pull strategy. The children ask their parents for the toys, the parents ask the retailers and the retailers the order the toys from the manufacturer. Other pull strategies include sales promotions, offering discounts or two-for-one offers and building demand through social media sites such as YouTube.
The key elements of our business strategy are to:
Build and enhance leading brands.We use an on-going process of market and consumer analysis to identify key brands that we believe have the greatest potential for profitable sales growth. We intend to continue to invest most heavily in these key brands to drive profitable and sustainable growth by strengthening consumer awareness, developing innovative products and brand extensions to take advantage of evolving consumer trends, improving distribution and increasing promotional effectiveness.
Focus on opportunities in high growth and high margin categories.We are focused on driving growth in our business in selected profitable and emerging categories. These categories include ready-to-drink teas, energy drinks and other functional beverages. We also intend to capitalize on opportunities in these categories through brand extensions, new product launches and selective acquisitions of brand and distribution rights.
Increase presence in high margin channels and packages.We are focused on improving our product presence in high margin channels, such as convenience stores, vending machines and small independent retail outlets, through increased selling activity and investments in coolers and other cold drink equipment. We also intend to increase demand for high margin products like single-serve packages for many of our key brands through increased promotional activity and innovation.
Leverage our integrated business model.We believe our integrated brand ownership, bottling and distribution business model provides us opportunities for net sales and profit growth through the alignment of the economic interests of our brand ownership and our bottling and distribution businesses. We intend to leverage our integrated business model to reduce costs by creating greater geographic manufacturing and distribution coverage and to be more flexible and responsive to the changing needs of our large retail customers by coordinating sales, service, distribution, promotions and product launches.
Strengthen our route-to-market through acquisitions.The acquisition and creation of our Bottling Group is part of our longer-term initiative to strengthen the route-to-market for our products. We believe additional acquisitions of regional bottling companies will broaden our geographic coverage and enhance coordination with our large retail customers.
Improve operating efficiency.We believe our recently announced restructuring will reduce our selling, general and administrative expenses and improve our operating efficiency. In addition, the integration of recent acquisitions into our Bottling Group has created the opportunity to improve our manufacturing, warehousing and distribution operations.