Transcript Sales Promotions

Sales Promotion - Week #6
Packaging II
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Review: Advertising
Types of Retail Advertising
Review Packaging Design Goals
Packaging Design Demo
Advertising Strategy
The Ad Agency - relevant or not?
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Create concepts
Produce ads
Place ads in media
Full-service:
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Marketing
Promotion
Merchandising
Packaging
PR
Research
Roles
• Copy
– Copywriters create the text
– Deliver the message clearly
• Art
– Art Director oversees development
– Includes all visual elements
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Illustrations
Photography
Videography
Etc.
• Production
– Producer hires and manages resources
The Advertising Plan
• A six-month calendar
• Rework up to a month in advance
• Includes:
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Date of ads
Department/Items to be advertised
Estimated resulting sales
Medium
Amount of space or time
Cost
Advertising Ratio
• Advertising Budget is a Percentage of
Desired Sales
Adv. Budget = Adv. Ratio * Total Sales Goal
Adv. Ratio =
Adv. Budget
Total Sales Goal
Types of Retail Advertising
Institutional Advertising
• Promotes store itself
– Prestige ad
• Exclusivity
– Policy ad
• Policy “Features” of store and benefits to consumer
– Good-neighbor ad
• “We’re concerned about your concerns”
• Sponsorship
Promotional Advertising
• Promotes selling
• By Condition of Sale
– Regular Price
• Just advertising product
• Focus on benefits
– Special Price
• On sale, marked down, etc.
– Clearance
– Mail Order
• From a retailer
• May be website only
Promotional Advertising - By Merchandise
• Single-item ad
• Tonnage ad
– Sell quantities
• Assortment ad
• Omnibus ad
– Multiple Departments
• Line-promotion ad
– Item at several price
points
• Related-item ad
– Coordinated items
• Departmentalized ad
– Promotes scope of
department
• Theme ad
– Coordinated with
event, on-going
campaign
Cooperative Advertising
• Paid in part by someone else
– Typically the manufacturer
• Benefits Manufacturer
– Consistent look
– Moves merchandise
• Benefits Retailer
– Prestige from known/respected brand
– Saves money
• Inclusion of other brands – probably co-op
Packaging Design Goals
• Before starting (formal) design!
• What does the package need to include?
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To support product
To meet regulations
To satisfy retailers (and distributors)
To reach target market
Sample Packaging Design Profile:
Bruttini Cookies - Product Requirements
• Contain 5+ oz of cookies, roughly 28 fluid
oz, 50 cubic inches
• Sturdy enough to protect product
• Maintain freshness
• Show evidence of tampering
• Easy to open
Sample Packaging Design Profile:
Bruttini Cookies – Regulations
• Front Panel:
– Type of Food displayed prominently
– Net Weight in large type in bottom third
• Side Panel (“Information Panel”)
– Nutrition Facts
– Ingredients Statement
– Company name and contact info
Sample Packaging Design Profile:
Bruttini Cookies – Supply Chain
• 12 units per case
• UPC code in standard size
– On side or bottom
• Cases labeled
– Product name
– Unit size and count
– Flavor
Sample Packaging Design Profile:
Bruttini Cookies – Target Market
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Fun, memorable logo
Italian Gourmet Style
*Show Product
Show Features
– Gluten-Free
– All Natural
– Old World Style
• Suggest Usage
• Compare to other known products
Break
References
Don’t design in a vacuum
Understand what the consumer expects
Packaging Resources
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www.glerup-revere.com
www.edesignerstudio.com
www.modpac.com/modpac/home.nsf
www.ungerco.com/
Party Supplies
Stationery Stores
http://vm.cfsan.fda.gov/~dms/flg-toc.html
– Search for “Food Labeling Guide” in Google
Package Design Demo
Advertising Strategy
• Understand the situation
• Sales Objectives
• Communications Objectives
Situational Analysis
• Product
– Features, benefits, advantages, uses
• Market Segments
– Whom do you want to reach?
• Competition
– Positioning – who do they sell to?
– How much/where do they advertise?
• Responses being sought
– Actions! – trial, repurchase, increased usage,
etc.
Sales Objectives
• Units
• Revenue
• Problems:
– Very difficult to measure
– Carryover effect
– External factors
Communications Objectives
• In terms of % of target audience
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Create Awareness
Create Interest
Create Desire
Create Action
Maintain Action
Communications Objectives – Example
• If target market is 20,000
– Awareness: 20%
• 20% are aware – 4,000
– Interest: 10%
• 10% actually interested – 2,000
– Desire: 5%
• 5% desire the product – 1,000
– Action: 0.5%
• 0.5% take action = 100
HOMEWORK:
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Read Chapter 7 (What is a Good Ad?)
Finish Packaging Design Profile
Work on Packaging
Begin Advertising Strategy
Gather materials to work on ads in class
Preview of Next Week
• More Advertising
• Present packaging profile to class for
feedback
• Present/discuss packaging ideas