Question

In the wake of the COVID-19 pandemic being faced by the world, ABC Company Ltd has produced a new brand of hand sanitizers which are herbal based. The company is about to enter the market with these new products.

2. As a marketing student, you have been asked to advise them on how to design their promotional strategy.

a. Formulate four (4) promotional objectives the company should aim to achieve giving reasons for your choices.​​​​ ​

b. Describe any four (4) appropriate promotional tools that the company may employ to achieve the objectives stated in ‘a’ above. Outline the advantages and limitations associated with the use of each tool to the company. ​

Answer 1

Promotional objectives that a company shall aim to achieve are as follows:

1. Increasing brand awareness: the very first objective for the ABC Company limited shall be to increase the brand awareness, as it has developed the herbal based sanitizers which will help the customers not only to protect the body from the COVID infection but also from the harmful chemicals that are there in the sanitizers. This will help to the company to grow in the market as customer will relate the name of company with the product.

2. Increase demand: the next step objective of the promotion is to increase the demand of the product. With the right promotional strategy customers shall be encouraged to purchase the product. Even the customers who do not use the product shall become eager to purchase the product.

3. Increase in Brand Image: with the correct promotional strategy, once the awareness about the brand is created and demand for the product is created, then the next objective of the promotion is to increase the image of the brand. With the image building of the brand the customers start relating a product directly with the brand. For example, if someone speaks of the name sanitizers then the name of ABC company limited shall come first to the mind of the person.

4. Market leader: the last objective of the promotion is to be a market leader. By continuous increase in consumer retention ratio and repeat sales, the company can become the market leader in terms of revenue or consumer base.

Following are the promotional tools that the company may employ to achieve the objectives stated above:

1. ADVERTISING: Promotion can be done through advertisement in print, radio or through digital means. This will help to create awareness among the customers about the new product

Advantages: Through advertising large group of people can be contacted.

Disadvantages: with advertising, personal contact can not be made and hence all the features of the product can not be demonstrated.

2. Sales promotion: to increase the demand various sales promotion tactics can be deployed for example, giving discounts, free coupon on purchase of goods, distribution of samples etc. this will help to boost the demand of the product.

Advantages: it gives the quick increase in sales.

Disadvantages: it is good for short term goal achievement, and not for the long term use, a people get used to of any offer and it may give losses to the company.

3. Public Relations: Image of a brand can be built with creating good public relations. For example good consumer support, making good corporate governance and good business ethics.

Advantages: it is less costlier than the other methods, and mouth publicity is more effective as compared to other modes.

Disadvantages: Lack of control is there as no one can control what others say. Therefore if any rumors spread then it is difficult to handle the situations.

4. Direct marketing/personal selling: Last but not the least, direct mareting helps the company to sale the goods and services to the customer on one to one basis. This can be done either through door to door, personal message, telemarketing etc.

Advantages: Large Number of customer can be reached in less time.

Disadvantages: it consumes high Costs. Such as salaries or payments for the door to door sellers.