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Sales Promotion - Week #5
Packaging
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Review: Retail Sales Promotion
Advertising
Introduce Package Design Goals
Term Projects: Where are we?
Begin work on Packaging Design
Goals/continue working on projects
Retail Sales Promotion
• Why Promote?
– A.I.D.A.
• External Factors
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Seasons
Holidays
Events
Sales Cycle
• Other Factors
– Historical Factors
– Sales Goals
– Flavor of the Week
Benefits of Promotion
• Control and Anticipate
– Sales
– Expenses
• Inventory Control
• Image
Considerations
• Desired Image
– Including style, benefits, pricing
• Reach and Cost
– Who will it reach?
– Is it worth the cost?
• Coordination
– All elements must support each other!
• Creativity
– Stand out from other messages
Budgeting
• Typically 1.5% - 6% of net sales
• Who creates the budget?
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Management
Divisions
Overall budget
Negotiations!
• Other expenses
– Payroll, Postage, materials, etc.
Planning the Calendar
• Needs
– Holidays, events, last year, historical expenses
• Process
– Set Sales Goals
– Determine promotion needed to meet goals
– Allocate
• Plan
– Media buys, displays, etc.
Drawbacks of Promotion
• Variability is painful!
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Inconsistent ordering/production
Train customers to wait for sales
Extra expenses (e.g overtime) can be high
Customers may go to competition
• Retail Promotion is a Slippery Slope!
• Solution: EDLP
Buy-ology
• Supermarket habits
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Sign psychology
Unused products
Shopping lists
How we find what we want
Brand loyalty
• Men vs. Women
• Luxury
• What else?
Advertising
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Ad Agencies
Roles
Advertising Ratio
The Plan
The Ad Agency - Relevant or Not?
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Create concepts
Produce ads
Place ads in media
Full-service:
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Marketing
Promotion
Merchandising
Packaging
PR
Research
Roles
• Copy
– Copywriters create the text
– Deliver the message clearly
• Art
– Art Director oversees development
– Includes all visual elements
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Illustrations
Photography
Videography
Etc.
• Production
– Producer hires and manages resources
The Advertising Plan
• A six-month calendar
• Rework up to a month in advance
• Includes:
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Date of ads
Department/Items to be advertised
Estimated resulting sales
Medium
Amount of space or time
Cost
Packaging Design Goals
• Before starting (formal) design!
• What does the package need to include?
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To support product
To meet regulations (if any)
To satisfy retailers (and distributors)
To reach target market
Packaging Your Product
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Size
Visibility
Strength
Protection
Freshness
Application
Ease of use
– What does the package need to do for the product?
Regulations
• What regulations affect packaging your product?
• Example: Bruttini cookies
– Nutrition Facts
– Net Weight
– Where it is produced
• What other packaging regulations are there?
• Look for examples of your type of product
– See what seems required, or at least common
Consider the Supply Chain!
• What would wholesalers/retailers need?
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Shelf size
Racks
Other similar goods
Warehousing
Case size
Target Market
• Finally! What should consumers see?
• Think about Buy-ology!
• Communicate the product and benefits
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Package
Colors
Fonts
Graphics
• Make an impression
• Don’t change more than one element (if any)
• The medium is the message!
– Marshall McCluhan
What’s the Message?
What’s the Message?
Get References!
Don’t design in a vacuum
Understand what the consumer expects
Break
Term Project: Where are we?
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Product Name/Description
Logo
Market Positioning
Target Profiles
Features vs. Benefits
The Foundation is Set
Term Project: What’s Coming?
• Packaging
– Objectives
– Design
• Advertising
– Objectives
– Media Plan
– Print Ads
• Pricing
• Promotion Plan
Work in Groups
HOMEWORK:
• Read Chapter 5 (Types of Retail
Advertising)
• Develop Packaging Design Profile
• Find 2-5 reference packages
• Gather materials to work on packaging in
class