Coupons, premiums, free offers, price-offs, discounts, product exchanges etc have become common and effective sales promotion tools. These are tools that really bring about an immediate change in the price-value equation of the product in favor of the consumer. The consumer’s net gain goes up.
Coupons are certificates which offer price reductions to consumers for specified items. Coupons are distributed through newspaper and magazine advertisements, or through the package of the merchandise, or by direct mail. Coupons normally perform two specific functions for the manufacturer. Firstly, they encourage the consumer to exploit the bargain. Secondly, they serve as an inducement to the trade for stocking the items. The manufacturer thus succeeds in attracting consumers as well as in prompting the channel to stock the merchandise through the insertion of coupons. They are useful for introducing a new product as well as strengthening the sale of an existing product.
Aristocrat luggage: Aristocrat molded luggage gave an attractive offer. It also ran nation wide campaign to publicize the offer. Aristocrat announced.
If you buy an Aristocrat within the next week, you get a Philips 2 Band transistor worth Rs 266 free!
And the advertisement set the time limit for the offer. It’s only for a week starting today.
Suzuki Shogun bike offered Ray-Ban sunglasses free as part of its sale promotion. The campaign read:
FREE — Ray-Ban sunglasses – With the Suzuki Shogun, the most powerful bike of its kind.
At the launching stage of Aqua-fresh toothpaste, SKB offered two tubes for the price of one.
Colgate offered 125 gm in a tube for the price of 100 gm.
Garment store Benchmark ran a sales promotion campaign:
All leading brands now available under one roof…
A Benchmark offer
Buy two Arrow shirts; get Rs 845 worth shirt free
Buy Lee bottoms; get Rs 850 worth shirt free
Buy two wrangler jeans; get Rs 745 worth shirt free
Buy two Ruggers shirts; get a travel bag free
Buy one Flying Machine jeans; get a waist pouch free….
Book Your Santro Today and ‘Take Home A World-space Hitachi Digital Radio Receiver Worth Rs 4,990 Absolutely Free.’
IT firms with a range of products give away their main product free and are still able to make money on the complementary product and service. For example, Apache software is free but the upgrades and support are priced. Cygnus Solutions give away the software free but charges a premium price for support and services. Netscape gives away the browser software free but makes money on the server software. Sun Micro systems gifts Java code but sells the server for a price.
Idealab offered to give free Compaq Presario computers along with Internet connections to Internet surfers who agreed to view targeted advertisements on their desktops. Another web-based company, One Stop Communications, offered iMac computers free to surfers who agreed to spend $3,600 for the next three years on its online mall.
In one of its sales promotion program, Samsung announced: This festive season buy any Samsung product and you can be taking home another product absolutely FREE. Here’s how:
Visit any of the Samsung dealers and along with the products you buy you get a plastic coconut. Break the coconut right there and along with the two pure silver coins that fall out will be the third coin, which could bring you your surprise gift. It could be anything from the Samsung range. The gifts included fridge, washing machine, TV, mobile phone and air conditioners.