Author(s): Syed S Hasan and Dr. Prem Prakash Dewani
Ravish Sinha, Senior Director of marketing at Strength Pharma, was planning his sales promotion strategy for a line of sports nutrition products. The sports nutrition category consisted primarily of Whey proteins, Amino Acid Supplements and Energy Drinks with Electrolytes for the Athletes. Sinha’s challenge was to select one of the three promotional alternatives - get three for the price of two (“3 for 2”), receive a gift with the purchase (“GWP”), and a pack coupon worth? 500 - for the New Year. He realized that the alternative he selected would have immediate effects on both cost and sales as well as long term implications for the brands involved. His primary objective was to drive sales volumes and trade-up consumers from lower value brands, while retaining or building brand equity. The case discusses how effectiveness of the promotional offers are analyzed.