Exchange Schemes, Money back offers and Contest consumers

In the consumer durables market, this has become the latest sales promotion tool. Customers can surrender their old models of TV or gas stoves for a price and take home new models.

Akai exchange scheme:

India’s No.1 CTV Akai 53cm Is Now available for a shocking around Rs 5,990.

Here is how:

Bring in your old 51 cm or 53 cm color TV (in proper working condition) with remote. Take home the Akai: For Rs. 5,990 in exchange.

Godrej fridge with Akai TV:

Another scheme of Akai offered an Akai 53 cm TV set and Godrej Ultra 200 litre fridge for Rs 14,990 in exchange for an old TV. It is worth noting that the MRP for the fridge was Rs 11,000. All CTV players in India came up with similar sales promotion schemes. It helped them tap the replacement market faster.

Videocon – money back offer:

Videocon came with a unique scheme, a money back offer . The offer ran like this:

Own a Videocon 21” free
Greatest Money Back Offer
Bring your old 20” or 21” CTV in working condition, with remote.
Deposit Rs 8,990 and take home a Videocon 21”. Take back Rs 8,990 after 5 years. There is no catch. Videocon sales went up. The company also got ready funds at zero interest.

Philips TV, two-in-one iron, mixer-grinder and rice cooker at an attractive price.

Contests of various kinds constitute another widely-used sales promotion tool. There are ‘dealer contests’ meant exclusively for the dealers of the company and ‘consumer contests’ open for all. While dealer contests normally remain a closed affair between the company and its dealers, consumer contests are given wide publicity to attract the participation of the widely scattered consumers base. Big budgets are normally allotted for consumer contest because they need attractive prizes and wide publicity.

Consumer contests take a variety of forms – quiz contests, beauty contests, scooter rallies and car rallies, suggesting a brand name, coining a slogan, suggesting a logo etc. Whatever may be the type of contest – filling the quiz, writing 25 words about the brand, or taking part in a rally – the intention of marketer is to create widespread action and news around the brand. To get vast masses of consumers interested in the brand and induce them to buy it is the central idea in all consumer contests.

Contests can be broadly classified into two groups: ‘Skill competition and ‘Sweepstakes governed by chance’. When the participant has to suggest a name to a brand, it involves a skill on the part of the participant. When the number of a coupon claimed by the consumer is included in a draw, the contest falls under chance. Though ‘contest’ is used as an all-round term, it has a specific meaning in the context of sales promotion. A ‘contest’ is one in which the consumers have to submit an entry, which are then judged for selecting the best entry. In ‘sweepstakes’, there is no such judgment; the choice is left to chance. The consumers enroll their names for a lucky draw. Quite often, contests are conducted in such a way that they combine the salient features of the sweepstakes as well.