Sales Promotion - Week #5 Packaging Review: Retail Sales Promotion Advertising Introduce Package Design Goals Term Projects: Where are we? Begin work on Packaging Design Goals/continue working on projects

Retail Sales Promotion Why Promote? –A.I.D.A. External Factors –Seasons –Holidays –Events –Sales Cycle Other Factors –Historical Factors –Sales Goals –Flavor of the Week

Benefits of Promotion Control and Anticipate –Sales –Expenses Inventory Control Image

Considerations Desired Image –Including style, benefits, pricing Reach and Cost –Who will it reach? –Is it worth the cost? Coordination –All elements must support each other! Creativity –Stand out from other messages

Budgeting Typically 1.5% - 6% of net sales Who creates the budget? –Management –Divisions –Overall budget –Negotiations! Other expenses –Payroll, Postage, materials, etc.

Planning the Calendar Needs –Holidays, events, last year, historical expenses Process –Set Sales Goals –Determine promotion needed to meet goals –Allocate Plan –Media buys, displays, etc.

Drawbacks of Promotion Variability is painful! –Inconsistent ordering/production –Train customers to wait for sales –Extra expenses (e.g overtime) can be high –Customers may go to competition Retail Promotion is a Slippery Slope! Solution: EDLP

Buy-ology Supermarket habits –Sign psychology –Unused products –Shopping lists –How we find what we want –Brand loyalty Men vs. Women Luxury What else?

Advertising Ad Agencies Roles Advertising Ratio The Plan

The Ad Agency - Relevant or Not? –Create concepts –Produce ads –Place ads in media –Full-service: Marketing Promotion Merchandising Packaging PR Research

Roles Copy –Copywriters create the text –Deliver the message clearly Art –Art Director oversees development –Includes all visual elements Illustrations Photography Videography Etc. Production –Producer hires and manages resources

The Advertising Plan A six-month calendar Rework up to a month in advance Includes: –Date of ads –Department/Items to be advertised –Estimated resulting sales –Medium –Amount of space or time –Cost

Packaging Design Goals Before starting (formal) design! What does the package need to include? –To support product –To meet regulations (if any) –To satisfy retailers (and distributors) –To reach target market

Packaging Your Product Size Visibility Strength Protection Freshness Application Ease of use –What does the package need to do for the product?

Regulations What regulations affect packaging your product? Example: Bruttini cookies –Nutrition Facts –Net Weight –Where it is produced What other packaging regulations are there? Look for examples of your type of product –See what seems required, or at least common

Consider the Supply Chain! What would wholesalers/retailers need? Shelf size Racks Other similar goods Warehousing Case size

Target Market Finally! What should consumers see? Think about Buy-ology! Communicate the product and benefits –Package –Colors –Fonts –Graphics Make an impression Don’t change more than one element (if any) The medium is the message! –Marshall McCluhan

What’s the Message?

Get References! Don’t design in a vacuum Understand what the consumer expects

Break

Term Project: Where are we? Product Name/Description Logo Market Positioning Target Profiles Features vs. Benefits The Foundation is Set

Term Project: What’s Coming? Packaging – Objectives – Design Advertising – Objectives – Media Plan – Print Ads Pricing Promotion Plan

Work in Groups

HOMEWORK: Read Chapter 5 (Types of Retail Advertising) Develop Packaging Design Profile Find 2-5 reference packages Gather materials to work on packaging in class