Joint promotions are a new trend. Two or more firms from different industries, but with shared markets and values, join together and conduct sales promotion programs. It helps to save promotional expenses for every partner.
Oberoi, Lufthansa and American Express:
Oberoi, in partnership with Lufthansa an American Express, came out with the ‘Oberoi Plus’ scheme. The Oberoi Plus worked on a system of redeemable points that were gained once the customer tapped the service of any one of the joint promotion partners. Since the customer base of all the three firms overlap, Oberoi Plus proved an ideal program to increase market penetration of every partner; it also gave them substantial savings.
Centurion Bank and Videocon: Centurion Bank and Videocon came with a joint promotion:
A special zero percent finance scheme. Centurion Bank will finance the purchase of Videocon products.
Amount Financed, up to Rs 30,000
Interest Rate 0 percent
Tenure 12 months.
In addition, Videocon offered special discounts/gifts/exchange prices for Centurion Bank customers.
Diverse groups coming together to do joint promotion:
In another interesting campaign, pediatricians joined hands with school principals, social service agency and a variety of retail stores (ice cream, pizza, toys, children’s clothing and video rentals) to attract and serve their common market: families with young children. The main objective was to give ‘immunization injections’ for children. Immunizations were organized at convenient times in a spacious children’s store. Parents got news about the offer through all the participating outlets; children were given free snack coupons. All the partners in the schemes were beneficiaries.
Merchandising / Display:
Proper merchandising and display at the store level promotes sales; it prompts the consumer to switch over to the displayed brand ignoring existing brand loyalties; it persuades them to buy ‘now rather than later’ and it makes a customer to buy more than the originally intended quantity. All these are essentially sales promotional functions. While advertising can only make a consumer aware of the product or generate a desire for it, merchandising/display often motivates a consumer to buy a product instantly. Point of Purchase (POP) displays are one of the most widely used sales promotional tools. With the proliferation of brands, innovative displays have become a prerequisite for success. In the store, brands compete with each other for consumer’s attention.