Proposal for a Sales Promotion Campaign

For this coursework, I will produce a proposal for a sales promotion
campaign for a product or a range of products of a business that I
will choose.

The proposal will include

* Background to the product and market situation as well as an
explanation of the sales promotion strategy that I will decide
that is most appropriate to promote my product.

* Objectives for the promotion.

* An explanation of the type pf promotion that I will choose for the
product.

* An explanation of other types of promotion that I could use.

* Finally, examples of different communication materials that you
could use to publicise and explain the sales promotion
effectively.

Background

By using different types of sales promotions and communicating
methods, I feel that this product would be appropriate to carry out my
sales promotion case study on because it is an existing product which
is doing really well within the market and I believe it has the
potential to do even better in the existing market.



Product life cycle
==================

This is an important concept for the marketing of a product or service
in any company. It is part of the strategic planning process for the
product or service that is being offered. In this case, using a food
item, the lifecycle will tend to be longer than for a new
technological item. Like any product in the market or anything in the
world, ‘Nothing lasts forever’. In the long term, Walkers Doritos will
decline and exit the market. There are five main phases that a product
goes through.

They are:

· Development: each new product idea has to be researched, designed
and tested, this may take a few weeks to months. All of this requires
funding, so it is important to calculate the extent of such costs when
making the decision to develop a product. Costs include, market
research, technical research, test market (trial run) and finally
executive time to co-ordinate the research. Walkers Doritos has been
through its development stage.

· Launch: once all development has been done, the launch is vital.
Production of the initial new products is high. The product is then
available for both trade and to the public, however, distribution
costs are high as well as promotion costs to make more and more people
aware of the new product that has entered the market and expensive
sales team costs. This is a good time to obtain economies of scales as
well as promote corporate brand images, ‘Walkers’ in this instance.
Walkers Doritos has been thorough its launch stage, it was launched in
1945 and since then has had a brilliant number of increasing sales and
many happy customers.

The reason why Walker Doritos have been placed on the Maturity point
on the product life cycle is because it has been around for many
years. In addition, sales have been put at a steady pace; they have
not risen or fallen.



SWOT
====



Strengths
=========

Walkers Doritos is a well known company that had been around for many
years. The product already exists so further costs on advertising will
not have to be made in order to get customers attention of the
product.

Re-promoting will help attract new customers. Walkers Doritos will be
promoting an offer to help get consumer attention and therefore
increase sales.

Walkers Doritos is already at a stable position within the bagged
snacks market, but by attracting new customers, sale will increase and
help shorten the lead on other bagged snack higher up the market.

Due to its success over many years, money from sales is available to
re-promote the product.

Weaknesses

Walkers Doritos have researched that there is a fall in sale in
certain age groups. The most significant age group is between the ages
12 – 15, the possible reason may be that the product may be too
original and not offering what consumers at this age want.

Competition within the market is fast, so for Walkers Doritos to
maintain their position within the market, they will have to keep up
to date and in order.

Costs from re-promoting the product may be high.

Opportunities

If re-promoting the product is successful, Doritos will increase sale
and again shorten the lead on other competitors higher up within the
market.

Attracting more customers from the different age groups would mean an
increase in profit.

Threats

Competitors may take the same route as Doritos and re-promote their
product and if they were more successful in achieving their goals then
Doritos position within the market would be under threat.

Re-promoting the product may not work and lead to being a waste of
money.


E2
--


From re-promoting the Walkers Doritos crisps, I wish to increase
sales, this is one of the key factors, the other reason is to attract
consumers, and to gain advantage over other competitors, in aspect of,
ranking in the UK leading Snack Brands.
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There are many ways to promote a product. The way in which I will be
promoting the product is by ‘offering tokens on selected packets and
if found then a gift will be rewarded’. The reason I had come to this
reason was to tackle the age group problem between the ages 12 – 15
and by offering a prize if tokens were to be found then I believe this
would get the attention of those ages.
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The prize that I would have to offer would have to get the attention
of young children to young teens. Therefore, I chose to promote a bike
if the tokens are found. I belive this would increase sales as
consumers would purchase the product in large numbers just to find the
token.
----------------------------------------------------------------------


There are many other ways of promotion such as
----------------------------------------------


· Price reduction:
------------------


· Special offers:
-----------------


· Free offers:
--------------


· Free samples:
---------------


· Trade promotions:
-------------------



E4
==

When promoting my product, there are laws, which I will have to take
into consideration.

The Sale Of Goods Act 1979 and Supply of Goods Act 1994 regulates
contracts for sale of goods. They imply the following term:

* The seller must have the legal right to sell the goods.

* The goods sold are ‘as described’

* The goods are of good quality and fit for the purpose.

The Trade Description Act says that the product must be what it says
it is. In this case then Doritos will have to reward the prize when
found.

The trade description act states that it is a criminal

· To apply a false trade description to any good, or to supply or
offer to supply, any goods to which a false trade description is
applied.

· To give a false indication as to price.

· To make a false statement knowingly or recklessly as to the
provision of a service.

· To give a misleading induction that goods have been offered at a
higher price, as in a shop sale, when this is not the case.

The Competition Act 1998 operates through the competition commission
(which replaced the Monopolies and merges commission). This body can
now investigate any firm in a dominant market position to see if they
are acting ‘against; the public’, whereby a firm tries to run
competitors out of business by long term, sometimes loss making,
prices, to establish a monopoly.

Walkers Doritos is in a very dominant position and are very well
respected so it is important that they stick to the rules. This is for
the safety of themselves.