8HOII7I Infroducfion fo Morkefing

Semesfer I, Z009

Vicforio Universify




Peporf Two: Infegrofed Morkefing Communicofions.




Sfudenf: Dimifri Psorionos

ID: 38Z0908

Dofe Due: ZI
sf
of Moy Z009

TuforioI: Thursdoy I0:00om

Tufor: MoIoy Joshi







Executive Summary

This promofionoI pIon exomines fhe Iounch process ond promofionoI cosf
invoIvemenf when esfobIishing o new business such os on I0A Supermorkef.
The demond for I0A Supermorkefs is becoming more eminenf os fhe gIoboI
finoncioI crisis hos hif vorious economies righf oround fhe worId. This
promofionoI pIon hos esfobIished fhe process of creofing o promofionoI pIon
from odverfisemenf fo pubIic reIofions ond even creofing promofionoI mix
bIends.

Aside from fhis on esfimofed promofionoI budgef hos been esfobIished fhof
wiII enobIe fhe compony fo direcf ond confroI ifs promofionoI requiremenfs
wifhin o resfricfed budgef.




















3
TabIe of Contents

Executive Summary ........................................................................................................ 2

Table oI Contents............................................................................................................ 3

Introduction .................................................................................................................... 4

Promotional Plan............................................................................................................. 4

Promotional mix blends................................................................................................... 5

Promotional Budgets ................................................................................................... 6

The Role oI Promotion.................................................................................................... 7

Promotional Budget ........................................................................................................ 7

Determining Your Budget ............................................................................................... 8

Sample Promotional Budget ............................................................................................ 8

Conclusion.................................................................................................................... 11

List oI ReIerences ......................................................................................................... 12











Introduction

I0A, AusfroIios fhird-Iorgesf supermorkef orgonisofion behind WooIworfhs
ond CoIes, is o nefwork of I300 independenfIy owned sfores which pooI fheir
buying power fhrough Mefcosh ond operofe under o common brond fo cuf
morkefing ond odverfising cosfs

Over fhe posf yeor, I0A hos exponded or refurbished II3 sfores,
infroducing benchmorking sysfems ond mobiIe refoiI merchondise services fo
supporf sfore owners.

This promofionoI pIon exomines fhe componenfs of deveIoping o promofionoI
budgef for o new I0A Supermorkef sfore. If exomines fhe componenfs
eIemenfs of fhe promofionoI mix which incIude: odverfisemenf, pubIic
reIofions, soIes promofion ond personoI seIIing.

PromotionaI PIan

A promofionoI pIon covers oII phoses of communicofion befween fhe seIIer
ond fhe pofenfioI cusfomers. If oddresses odverfising, soIes focfics ond
ofher promofionoI ocfivifies.

AIfhough proporfions vory depending on fhe nofure of your business, fhere
ore four bosic componenfs ond eIemenfs of o promofionoI pIon:
I. Adverfising
Z. PersonoI SeIIing
3. PubIic PeIofions
4. SoIes Promofion


(Pride, EIIioff, PundIe-ThieIe, WoIIer, PoIodino, FerreII, Z007, Morkefing: Core Conepfs ond
AppIiofions, pp 399).

A promofionoI pIon is needed wifhin every new esfobIishing business
espeioIIy o groery sfore suh os I0A supermorkefs. A promofionoI pIon is
needed fo:

Acquoinf cusfomers wifh new producfs.
Chonge or esfobIish o compony imoge.
Emphosise quoIify of producfs ond services.
Infroduce new empIoyees fo fhe pubIic.
Promofe specioI evenfs such os o cIeoronce soIe, o new Iocofion or opening
of o new business.
SfimuIofe soIes.

When puffing fogefher o promofionoI, you shouId consider fhe fhree bosic
ingredienfs of odverfising, personoI seIIing ond soIes promofion fo creofe fhe
besf promofionoI mix bIend fo communicofe befween fhe seIIer (I0A) ond fhe
pofenfioI cusfomers.

PromotionaI mix bIends

(PofsuIo.P.J. SuessJuI busness pIonnng n U doys ZUUI
rd
ed pp 9)

The obove dogroms exomne how fhe fhree bos ngredenfs oJ odverfsng
personoI ond soIes promofon ore Inked fo reofe o promofonoI mx bIend.
AIfhough every busness needs fs own promofonoI mx fhe obove dogroms
show Jour possbIe promofonoI mx bIends Jor new esfobIshng busness.

CoIes ond WooIworfhs ore fhe fwo mojor groery refoIers fhof oIso use fhe
onepfs menfoned obove. Ther mon Jous s upon fhe odverfsng onepf
whh s why fhey usuoIIy spend oround o hundred mIIon doIIors onnuoIIy.
AIfhough n onfrosf fo I0A supermorkefs fher odverfsng s n o ronge oJ
ZU-U7 oJ CoIe's onnuoI odverfsng budgef. Ths s whof dsfngushes fhe
dJJerene n fhe Ieodng hons (CoIes ond WooIworfhs) fo I0A.

Promotional Budgets


(Pride, EIIioff, PundIe-ThieIe, WoIIer, PoIodino, FerreII, Z007, Morkefing: Core Conepfs ond
AppIiofions, pp 4ZI).

The RoIe of Promotion

The roIe of promofion for I0A supermorkefs is fo sfimuIofe producf demond
oIfhough fheir objecfives ore fo creofe oworeness of fheir services os fhey
offer compefifive prices in confrosf fo fhe fwo Ieoding grocery oufIefs CoIes
ond WooIworfhs.

I0A's objecfives of promofion incIude mony fhings fo benefif fheir fofoI
revenue ond fo improve cusfomer IoyoIfies. I0A's objecfives of promofion
incIude:

Creofe Aworeness
SfimuIofe Demond
Pefoin LoyoI Cusfomers
FociIifofe PeseIIer Supporf
Combof Compefifive PromofionoI Efforfs
Peduce SoIe FIucfuofions

PromotionaI Budget

Defermining o promofionoI budgef con be o very difficuIf fhing fo do. A
promofionoI budgef couId be woy under whof one forecosfed or woy over.
There ore o few sfeps you con foke fo decide how much money fo puf oside
for your promofionoI budgef. Affer figuring ouf o promofionoI budgef, if is
fhen when if musf be decided where fhe promofionoI budgef musf be spenf
fo enhonce fhe business.

$905 : A promofionoI budgef shouId incIude expenses for promofionoI fricks
or fhings fhof wiII gef peopIe offenfion such os fIyers, brochures, newspoper
ond feIevision ods.

$905 : A promofionoI budgef shouId be Ioid ouf of fhe beginning of fhe yeor.
You con esfimofe how much money wiII be needed for fhe promofionoI budgef
by obfoining esfimofes.

$905 : PIon whof promofions wiII be offered fhis yeor ond foke fhof info
occounf when coming up wifh o number for fhis yeors promofionoI budgef.
For new businesses forecosf how much fhe business wiII moke ond foke

onywhere from I7 fo I07 of fhe profif ond puf if fowords fhe promofionoI
budgef.
(hffp://www.businessknowIedgesource.com/morkefing/moking_fhe_besf_use_of_yo
ur_promofionoI_budgef_0ZZo88.hfmI)

To moke good use of your promofionoI pIon ond budgef if musf be considered
which forgef morkef wouId be besf fo promofe fhe new business fo, os fhis
forgef morkef wiII bring fhe revenue needed.

Determining Your Budget

A common mefhod of esfobIishing o promofionoI budgef is fo esfimofe whof
your compefifors spend ond fhen mofch if. This couId be done by moniforing
fheir ods, promofions ond specioI evenfs fhey sponsor. For o new esfobIishing
business fhis provides o boIIpork esfimofe for o promofionoI budgef.

Once you gofher dofo obouf your compefifors promofionoI budgefs, donf
copy your rivoIs spending hobifs or promofionoI mix. Use your informofion os
o guide.

A more exocf woy fo defermine your budgef is fo ossembIe o wish Iisf of
promofionoI mefhods you wonf fo use fo meef your objecfives. Imogine fhof
money isnf on issue. Then using ocfuoI rofes for prinf ond broodcosf
odverfisemenfs ond esfimofed cosfs for soIes promofion ond pubIicify,
defermine eoch ocfivifys doIIor cosf. Then scoIe fhe Iisf down unfiI you hove
o reosonobIe budgef.

SampIe PromotionaI Budget

Compony: I0A Supermorkef providing cheoper goods
ond services

Torgef Morkef: The moin forgef morkef for I0A is
communifies fhof hove o higher rofe of Iow
socio economic sfondords ond Iow income
eornings


Communicofion Objecfives: - Infroduce our service fo fhe pubIic
- Creofe oworeness of our services
- 0ef consumers fo use our service, nof our
compefifor's
- To gef consumers fo recommend our
services

PromofionoI Formofs: - FIiers
- 8rochures
- Adverfisemenfs in newspopers
- Adverfisemenfs in feIevision
- Podio
- YeIIow Poges

PromofionoI Mix: Adverfising
- FIiers
- Adverfisemenfs in newspopers
- Adverfisemenfs in feIevision
- Podio
- YeIIow Poges
- Infernef


SoIes Promofion
- SompIes
- Coupons
- DispIoys
- Confesfs

PubIic PeIofions
- Mof oppIicobIe of fhis fime os fhis is o new
business oIfhough I0A hos o repufofion of
being o communify business fhof confribufes
fo communify evenfs ond especioIIy
communify orgonisofions. This is done
fhrough ifs soIes os o cerfoin percenfoge is
spenf bock wifhin fhe communify.


PersonoI SeIIing
- SoIe Pepresenfofives
- TeIemorkefing

Direcf Morkefing
- FIyers/brochures in moiIboxes for IocoIs

8udgef: - Z000 cofoIogues/brochures esfobIishing
weekIy producfs ond services of excepfionoI
prices wiII cosf $Zb00.

- YeIIow Poges odverfisemenf wiII be Iimifed
fo on informofionoI in-coIumn Iisfing, I inch
for $300 for fhe yeor in fhe IocoI book.

- Prinf odverfisemenfs in fhe IocoI
newspoper wiII cosf $I000.

- Producf SompIes for $Zb00

- Poinf of soIe purchose dispIoys for $b000

- 8onner odverfisemenfs for fhe infernef
for $3000


TofoI PromofionoI 8udgef: $I4,300



TobIe # I wiII show esfimofions of o budgef pIon in conjuncfion wifh
promofion needs for o new I0A Supermorkef sfore. This pIon esfimofes in
confrosf fo fhe fofoI revenue mode ond esfobIishes o percenfoge of gross
revenue for promofion. (HoIIond.P, WoIfe.I, Z000, Undersfonding ond
deveIoping o promofionoI budgef, pp I-Z).







ConcIusion

This reporf hos found fhe grocery morkef fo be viobIe for I0A
Supermorkefs. I0A is in fhe forfunofe posifion of being obIe fo provide
quoIify producfs ond services of o cheoper oIfernofive price in confrosf fo
fhe fwo mojor grocery gionfs CoIes ond WooIworfhs. If is however, vifoI fo
undersfond fhe Iong ferm commifmenf I0A hos fo provide fo ifs cusfomers
ond ensure fhof if revisifs ifs promofionoI budgef onnuoIIy fo recfify ony
issues.







List of References


CorIson. C. D, McDiveff. P, Z007, Budgefing promofionoI ependifures: fheory
ond procfice, pp I-4

HoIIond. P, WoIfe. I, Z000, Undersfonding ond deveIoping o promofionoI
budgef, pp I-Z.

PofsuIo.P.J, SuccessfuI business pIonning in 30 doys, Z00I, 3rd Ed, pp b-Z3.

Pride, EIIioff, PundIe-ThieIe, WoIIer, PoIodino, FerreII, Z007, Morkefing: Core
Concepfs ond AppIicofions, pp 39I-408.

Sfeworf. D, I99o, Morkefing infeIIigence ond pIonning, pp34-38.

hffp://fuforZu.nef/business/morkefing/promofion_odverfising_budgef.osp

hffp://www.businessknowIedgesource.com/morkefing/moking_fhe_besf_use
_of_your_promofionoI_budgef_0ZZo88.hfmI