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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
16. Sales Promotion © The McGraw−Hill
Companies, 2003
establish ongoing purchase patterns. Promotional incentives such as coupons or
refund offers are often included with a sample to encourage repeat purchase after trial.
For example, when Lever Brothers introduced its Lever 2000 brand of bar soap, it distributed
millions of free samples along with a 75-cent coupon. The samples allowed
consumers to try the new soap, while the coupon provided an incentive to purchase it.
Increasing Consumption of an Established Brand Many marketing
managers are responsible for established brands competing in mature markets, against
established competitors, where consumer purchase patterns are often well set. Awareness
of an established brand is generally high as a result of cumulative advertising
effects, and many consumers have probably tried the brand. These factors can create a
challenging situation for the brand manager. Sales promotion can generate some new
interest in an established brand to help increase sales or defend market share against
competitors.
Marketers attempt to increase sales for an established brand in several ways, and sales
promotion can play an important role in each. One way to increase product consumption
is by identifying new uses for the brand. Sales promotion tools like recipe books or calendars
that show various ways of using the product often can accomplish this. One of the
best examples of a brand that has found new uses is Arm & Hammer baking soda.
Exhibit 16-9 shows a clever freestanding insert (FSI) that promotes the brand’s new
fridge-freezer pack, which absorbs more odors in refrigerators and freezers.
Another strategy for increasing sales of an established brand is to use promotions
that attract nonusers of the product category or users of a competing brand. Attracting
nonusers of the product category can be very difficult, as consumers may not see a
need for the product. Sales promotions can appeal to nonusers by providing them with
an extra incentive to try the product, but a more common strategy for increasing sales
of an established brand is to attract consumers who use a competing brand. This can be
done by giving them an incentive to switch, such as a coupon, premium offer, bonus
pack, or price deal. Marketers can also get users of a competitor to try their brand
through sampling or other types of promotional programs.
One of the most successful promotions ever used to attract users of a competing
brand was the Pepsi Challenge. In this campaign, Pepsi took on its archrival, industry
leader Coca-Cola, in a hard-hitting comparative promotion that challenged consumers
to taste the two brands in blind taste tests (Exhibit 16-10). The Pepsi Challenge promotion
included national and local advertising, couponing, and trade support as part of a
fully integrated promotional program. The campaign was used from 1975 to the early
80s and was instrumental in helping Pepsi move ahead of Coke to become the market
share leader in supermarket sales. In response Coke launched a variety of counterattacks,
including the controversial decision to change its formula and launch New Coke
in 1986. Pepsi brought back the promotion in 2000 to recruit a new generation of brand
Exhibit 16-10 The Pepsi Challenge was a very successful promotion for attracting users of a
competing brand
ANNCR: All across America people
are taking the Pepsi Challenge. In
California here’s what they are
saying.
TRACY KUERBIS: Pepsi really is the
better drink.
DAVE JOHNSON: I’ve proven to myself
now that I like Pepsi better.
ANNCR: Nationwide more people
prefer the taste of Pepsi over
Coca-Cola.
CHERIE BOOTH: I think today’s test
was very honest.
DAVE: Pepsi has a better product
and that’s probably why they are
running a test like this because it’s
Exhibit 16-9 Arm &
Hammer used this FSI to
promote a specific use for
the product
obvious how many people over
here have picked Pepsi.
SUZANNE MACK: Being able to
compare the two, I’d pick Pepsi.
CHERIE: If someone offered me
either or, I choose the Pepsi.
ANNCR: What will you say? Take
the Pepsi Challenge and find out.
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Chapter Sixteen Sales Promotion