Sales promotion tools vary in their specific objectives. Sales promotions often attract brand switchers, who are primarily looking for low price, good value or premiums. If some of them would not have otherwise tried the brand, promotions can yield long-term increases in market share (Kotler & Keller 2012). The management and decision of promotional decisions relied on participation/redemption rates, and data from our competitors with the promotion activity report. The initial strategy was to distribute the promotional allowances with the range of 17 – 20% with an emphasis on chain drug stores and grocery stores as the channel sales report indicated these two channels represent 40% of Allround sales. Conveniences stores wholesalers were excluded. A key indicator to monitor the effectiveness of promotion spend was a survey of intentions report. The goal is to have the actual purchase percentage trend higher than the intended rate. The result is at the point of purchases the promotions are convincing customers to purchase Allstar Brands products. The Allround brand on the average period over period trended one basis point higher.
A promotion strategy consisted of two key components, co-operative advertising, and consumer promotions. Co-op advertising enables retailers to promote Allstar Brands products and increase awareness. The point of purchase promotions increased brand awareness, market share, and unit sales. The strategy was to develop a balance between the both mechanisms based on market conditions and growth opportunities. For example, when the alcohol was removed from Allround in a reformulation, a tan increase in trial samples was beneficial as a means to promote the change so the consumer can experience the benefits. Traditionally, a mature product line such as Allround would not benefit from trial samples when compared to coupon offerings. Feedback provided from the target markets of families expressed a desire for coupons. In those periods where the coupon funding was reduced, the customer based responded negatively. The average redemption rate was 2%. When the Allright product was launched a heavy emphasis was on placed trial sizes and coupons ($3.5M). As the product gained acceptance in the market