Retail promotion strategy

broadly defined as all the communication that informs, persuades, and/or reminds the target market or the prospective segment about marketing mix of the retail firm

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Why?

Increase store traffic Increase share of wallet by all or specific category Increase sales for product/ category/ all Develop store image/ brand

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Value of Brand Image

Brands
Value to Retailers (Brand Equity)

Value to Customers

Attract Customers Build Loyalty Higher Prices Leading to Higher Gross Margin Reduced Promotional Expenses Facilitates Entry into New Markets Gap GapKids

Promises Consistent Quality Simplifies Buying Process Reduces Time and Effort Searching for Information About Merchandise/Retailer

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Building Brand Equity

Create a High Level of Brand Awareness Brand Equity Develop Favorable Associations

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Consistent Reinforcemen t

Create Emotional Connections

Creating Brand Awareness

Repeated Exposure

Memorable Name

Big Bazaar

Kamat

Top-of-mind Brand Awareness

More

Symbols
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Pantaloon

Event Sponsorshi p

Retailers Develop Associations with their Brand Name

Brand name is a set of associations that are usually organized around some meaningful themes Brand associations: anything linked to or connected with the brand name in a consumers memory

Merchandise Category Sapna book store book supplies Price/quality Pantaloons , high fashion merchandise Specific attribute or benefit Maruti Service centers convenience Lifestyle or activity Planet M entertainment
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McDonalds Brand Associations

Golde n Arches

Fast Food

Burgers

McDonald s
French Fries Clea n Ronald McDonal d

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Consistent Reinforcement
The retailers brand image is developed and maintained through the retailers communication mix
Retail Communication Mix

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Communication Methods

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Selection considerations

Control : paid form Flexibility: personal selling Credibility: word of mouth Cost : publicity

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Paid Impersonal Communications

Advertising Sales promotions Special events, Instore demonstrations Games, sweepstakes and contests Coupons Store atmosphere Website Community building

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Store Atmosphere

The combination of the stores physical characteristics (architecture, layout, signs and displays, colors, lighting, temperature, sounds, smells) together create an image in the customers mind

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Mediacart
A shopping cart that delivers point-of-decision advertising Informs the customer about special deals as the customer passes them in the aisle Each video screen is embedded with an RFID chip that interacts with chips installed on store shelves Records shopping habits, dwell times, how shoppers travel through the store
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Community Building
Retailers Community Building Websites offer opportunities for customers with similar interests to learn about products and services that support their hobbies and share information with others

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Paid Personal Communication

Retail salespeople are primary vehicle for providing paid personal communication to customers.
n

Personal selling salespeople satisfy needs through face to face exchange of information

Email retailers inform customers of new merchandise, receipt of order or when order has been shipped Direct Mail M-Commerce (mobile commerce)

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Unpaid Impersonal Communication

Publicity is communication through significant unpaid presentations about the retailer, usually a news story, in impersonal media. Newspaper TV coverage Macys Thanksgiving Day Parade Standard Chartered Mumbai Marathon 2008 Raises Rs 6.75 Crores For Charity

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PR
The Gap, Emporio Armani, and Apple are among several retailers selling red products, a portion of the proceeds go to Product RED, a charity to wipe out AIDS in Africa

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Unpaid Personal Communication

Can be favorable

Word-of-mouth

Can be detrimental

Social Shopping
n

A communication strategy in which consumers use Internet to engage in the shopping process by exchanging preferences, thoughts, and opinions Product/service reviews

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Social Shopping

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