Chapter 19
Promotional Strategy
Administrative Items
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CNTAE
Moodle Correction
 Chapter 19 today
 Chapter 18 p. 461-471 for Wednesday
Grades
 Retail Institutions Assignments available for pick-up
tomorrow beginning at noon
 Moodle assignment submission – Wednesday optional
 Participation grades will be posted by Thursday, Nov. 28
 Newswatch Assignment Grades available Mon. Dec 2
Planning a
Retail
Promotional
Strategy
Promotion and the Hierarchy of Effects
Procedures for Setting a Promotional
Budget
Affordability method
 Incremental method
 Percentage-of-sales method
 Competitive parity method
 Objective-and-task method
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Which is best? Why?
Advertising
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Advertising is paid, nonpersonal communication
transmitted through out-of-store mass media by an
identified sponsor.
Retailers can use advertising to accomplish a number of
objectives including:
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Providing information about goods and services and/or company
attributes
Reinforcing their image
Lifting short term sales
Easing the job of sales personnel
Of all advertising media, papers (weeklies, dailies, and
shoppers) are the most preferred by retailers*
Advertising
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Advantages
Attracts a large audience
Low cost per contact
Control over message
content; message can be
standardized
Many media alternatives
available
Gains pass along
readership (for print)
See also Table 19.2
Advertising Media Comparison Chart
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Disadvantages
Standardized messages
lack flexibility
Geographic flexibility
limited
Some media require large
investments
Some media require long
lead time
Some media have high
throwaway rate
Some media limit the
ability to provide detailed
information
Types of
Advertising
Sears Canada Holiday 2013
Sears 2013
Familiprix Reel
Harveys
Joe Fresh
Familiprix 1
Reno-Depot 1
Familiprix
Reno-Depot 2
IKEA
http://cassies.ca/Home/Case_Library
Retail circular support increases in US CPG
Canadian Tire Advertising
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Canadian Tire is one of
Canada's largest
advertisers.
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Catalogue – used to
communicate
product information
and drive traffic
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Flyers (circulars) –
90 % readership;
distributed to 11
million households
weekly to support
catalogue objectives
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Television
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Television spring
2013
Canadian Tire TV Advertising
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Canadian Tire used TV spokespeople in demomercials until 2006. Why did Canadian Tire drop the
spokespeople?
Canadian Tire guy ranked the #1 most annoying person
on TV in a poll conducted among readers of Globe and
Mail TV column
"demo-mercials" were effective, but advertising wear-out
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"It was time for something new, something fresh, something
different, and maybe something a little more light hearted,"
Canadian Tire's Lisa Gibson told CTV News.
The replacement: a series of no name couples using a
more humourous, less in your face, sales approach.
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Source: CTV News, “Canadian Tire dumps know-it-all neighbour
ads”, www.ctv.ca, March 10, 2006
Although Canadian Tire guy ads were competitive in
nature, there is a risk of negatively impacting the
retailer’s image if they are not well perceived
This example illustrates the importance of market
research and the truly integrated nature of retail
strategy execution
Canadian Tire Institutional Advertising
Sales Promotion
Sales promotion is used to generate immediate action and
encompasses the paid communication activities other than
advertising, public relations, and personal selling that stimulate
consumer purchases and dealer effectiveness
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Sales promotion includes point-of-purchase displays, coupons,
contests, demonstrations and special events
Sales promotion is also said to include loyalty programs
As with all the other promotional tools, there are trade-offs
with using sales promotion that must be balanced
Sales promotion is effective when used to generate consumer
interest or excitement and is viewed as a complement to other
tools
Canadian Tire Sales Promotion
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Coupons
Sweepstakes
Canadian Tire Money
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Debuted in 1958
Canada’s most popular loyalty
rewards program with 90%
redemption
Has evolved to include Canadian
Tire 'Money' On the Card™
New electronic loyalty program…
Do you think loyalty programs are really sales promotions?
The Future of Retail Promotion
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Greater Use of Social Media
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How?
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Consumer Generated Media (CGM)
Smartphones and Location Based Promotion
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Best Buy
Increased Engagement and Interactivity
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Zellers Festive finale