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Campaign name and spend matter, says Kidstuff Promotion survey

26-September-2005
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Campaign name and spend matter, says Kidstuff Promotion survey

With more clutter and less Return on Investment (ROI), marketers are going back to the basics. Consumer insights have become increasingly important for clear and effective promotions and campaigns. Kidstuff Promos & Events Pvt Ltd, a promotional marketing services company, which launched its consumer insights division, ‘Kidslink’ in India in 2001, has come out with ‘Promo Survey 2005’, which is an endeavour to help marketers understand the consumer’s psyche to devise better campaigns.

The survey covered 10 cities across India – Delhi, Chandigarh, Lucknow, Mumbai, Pune, Ahmedabad, Bangalore, Hyderabad, Chennai and Kolkata. The methodology involved one-to-one interviews with the customers and retailers.

The findings are quite interesting. While the customer report points to a good name, big spends, value of top-prize and connect with all age groups as factors for success, the retailer report indicates that innovative campaigns do well and that it is important to keep the retailers satisfied through adequate and timely incentives.

The reports also bring out the fact that grocery stores are the best place to target the prospect.

Customer Report Findings

- A promo must have a striking name, buzz is created around that name

- Campaigns of daily-use products have higher recall. Repeat purchase of these goods ensure higher recall

- Campaigns should involve all and sundry. TG must be spread across all ages, gender and SEC

- Promos should be supported by good media spend

- A promo thrives on the perceived value of the Top Prize. All media hype and PR exercises are built around it

- Base Prize drives participation. Wow factor helps in ensuring participation and high TOM recall

- Customers love campaigns that give them a better chance of winning

- A small purchase (by value), doesn’t help much

- The local grocery store is the best place for targeting the prospect. This is the point where the ultimate purchase decision is made

- Lot of promotions are happening at multiplexes and malls. Marketers are reaching out to their prospects when they are at their leisure

- Phone is the most preferred medium. Customers prefer to do away with middlemen altogether and contact the company directly to get their prizes, this they feel will quicken the process and prevent loss of any prize

- Companies need to disguise their data collection process because only 31 per cent willingly give away all contact/personal details. Rest of them either shy away from disclosing their details or barely provide the minimum information necessary (for participating in the campaign)

- A promotion can get you a trial purchase

- 80 per cent respondents would try a new brand if an offer is available. A repeat purchase, however, would only happen if the customer likes the new product

- 20 per cent of the customers are loyal to their brands

- 73 per cent respondents would not mind buying products in advance. Incentives to indulge customers (in buying additional amount), however, would differ

- 67 per cent buyers would be happy with any small incentive, while others would want a gift with high-perceived value

- Consumers don’t have any preference for Premium Immediacy

- They don’t have any preference for assured prizes if better prizes are on offer through a lottery

- Consumers prefer premiums, which have a better fit with the product

Retail Report Findings

- A promotion is driven by prizes

- Promotions of big brands do well

- Incentive for retailers motivates them to actively support a campaign

- Innovative campaigns can be a huge success

- Consumers like schemes where they don’t need to put an effort to get a prize

- They like schemes with assured prize

- 32 per cent retailers would stock a new product and give more shelf-space only if they have a good relation with the company

- 29 per cent are willing to stock a new product

- Whatever ways (medium) the company adopts to inform the customers about a campaign are probably not good enough; the customer has lots of doubts in his mind about the campaign – marketers need to work on their communication

- This further emphasises the importance of the role of the retailer as the interface between the company and its customers – the company has to ensure that retailers are well-conversant with the promo details as they need to clarify the doubts of the customer on the spot

- The survey also tried to find out whether retailers face any problems during a campaign. The biggest grudge that the retailers have is the delay in getting their incentives (handling charges/prizes) from the company (47 per cent)

- 90 per cent retailers are happy to be a part of the prize delivery mechanism

What comes out from the survey is a need for promotions to be more innovative, with a name that has good recall and the importance of keeping the retailer satisfied with timely incentives. Apart from these, clarity in communication, good company-retailer relations, better brand-promotion fit also came out as points to be taken care of.

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