Essay About Brand Value And Long-Term

What Are the Main Pros and Cons of Each of the 3 Promotions Being Considered?
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Name: Komal DilshadSU ID: 853838435 Q1. What are the main pros and cons of each of the 3 promotions being considered?3 for 2Advantages1. Can stimulate quick increases in sales by targeting promotional incentives on particular products2. Good short term tactical tool3. Good method to attract new consumers4. Could be used to get rid of overstocked, low selling or out of season items5. It is a good method to introduce a new product to the market.Disadvantages1. If used over the long-term, customers may get used to the effect2. May not ensure repeat purchases3. May decrease brand value in the longer run.Gift with PurchaseAdvantagesHelpful in increasing brand awarenessWill create word of mouth opportunities and generate referralsImprove the brand image and perceptionEffective to lure new customers, but slightly less effective than the 3 for 2 strategy.DisadvantagesMay generate a purchase cycle where consumers weight for the free gift to buy the product instead of following their regular purchase item.May lessen the perceived value or quality of the item being offered, Potential negative impact on brand image by making you look cheap50p CouponAdvantages1. May result in quick infusion of cash.2. Encourage first time trial3. May encourage brand switching or attract first time buyers.4. Some coupons are never redeemed, so you get some of the awareness building effect for free.Disadvantages1. Can be costly in the long run2. May not be sustainable as a promotional strategy3. Could lead to Cannibalization of existing revenue 4. May lessen the perceived value or quality of the item being offered, 5. Potential negative impact on brand image by making you look cheap2. What are the financial implications of the 1st alternative: the “3-for-2” offer? You would first calculate the sales you could get during a non promotional month, then calculate sales for the promotional month, find the break even point and then find out how the promotion would effect the sales after the promotional month is over.Price of Gel: 2.99Price of Shampoo: 3.99Price of Conditioner: 3.99On a Normal DayTypical Days Sales: 100 units each