sales promotion - week #5 packaging review: retail sales promotion advertising introduce package...
TRANSCRIPT
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Sales Promotion - Week #5Packaging
• Review: Retail Sales Promotion
• Advertising
• Introduce Package Design Goals
• Term Projects: Where are we?
• Begin work on Packaging Design Goals/continue working on projects
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Retail Sales Promotion
• Why Promote?– A.I.D.A.
• External Factors– Seasons
– Holidays
– Events
– Sales Cycle
• Other Factors– Historical Factors
– Sales Goals
– Flavor of the Week
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Benefits of Promotion
• Control and Anticipate– Sales– Expenses
• Inventory Control
• Image
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Considerations
• Desired Image– Including style, benefits, pricing
• Reach and Cost– Who will it reach?– Is it worth the cost?
• Coordination– All elements must support each other!
• Creativity– Stand out from other messages
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Budgeting
• Typically 1.5% - 6% of net sales
• Who creates the budget?– Management– Divisions– Overall budget– Negotiations!
• Other expenses– Payroll, Postage, materials, etc.
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Planning the Calendar
• Needs– Holidays, events, last year, historical expenses
• Process– Set Sales Goals– Determine promotion needed to meet goals– Allocate
• Plan– Media buys, displays, etc.
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Drawbacks of Promotion
• Variability is painful!– Inconsistent ordering/production– Train customers to wait for sales– Extra expenses (e.g overtime) can be high– Customers may go to competition
• Retail Promotion is a Slippery Slope!
• Solution: EDLP
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Buy-ology
• Supermarket habits– Sign psychology– Unused products– Shopping lists– How we find what we want– Brand loyalty
• Men vs. Women
• Luxury
• What else?
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Advertising
• Ad Agencies
• Roles
• Advertising Ratio
• The Plan
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The Ad Agency - Relevant or Not?
– Create concepts– Produce ads– Place ads in media– Full-service:
• Marketing
• Promotion
• Merchandising
• Packaging
• PR
• Research
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Roles
• Copy– Copywriters create the text– Deliver the message clearly
• Art– Art Director oversees development– Includes all visual elements
• Illustrations• Photography• Videography• Etc.
• Production– Producer hires and manages resources
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The Advertising Plan
• A six-month calendar
• Rework up to a month in advance
• Includes:– Date of ads– Department/Items to be advertised– Estimated resulting sales– Medium– Amount of space or time– Cost
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Packaging Design Goals
• Before starting (formal) design!
• What does the package need to include?– To support product– To meet regulations (if any)– To satisfy retailers (and distributors)– To reach target market
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Packaging Your Product
• Size• Visibility• Strength• Protection• Freshness• Application• Ease of use
– What does the package need to do for the product?
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Regulations
• What regulations affect packaging your product?
• Example: Bruttini cookies– Nutrition Facts– Net Weight– Where it is produced
• What other packaging regulations are there?• Look for examples of your type of product
– See what seems required, or at least common
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Consider the Supply Chain!
• What would wholesalers/retailers need?
• Shelf size
• Racks
• Other similar goods
• Warehousing
• Case size
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Target Market• Finally! What should consumers see?• Think about Buy-ology!
• Communicate the product and benefits– Package– Colors– Fonts– Graphics
• Make an impression• Don’t change more than one element (if any)• The medium is the message!
– Marshall McCluhan
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What’s the Message?
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What’s the Message?
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Get References!
Don’t design in a vacuum
Understand what the consumer expects
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Break
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Term Project: Where are we?
• Product Name/Description• Logo• Market Positioning• Target Profiles• Features vs. Benefits
The Foundation is Set
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Term Project: What’s Coming?• Packaging
– Objectives– Design
• Advertising– Objectives– Media Plan– Print Ads
• Pricing• Promotion Plan
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Work in Groups
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HOMEWORK:
• Read Chapter 5 (Types of Retail Advertising)
• Develop Packaging Design Profile
• Find 2-5 reference packages• Gather materials to work on packaging in class