free tickets promotion

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Free tickets promotionFree tickets promotion

ends in disasterends in disaster


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Your company sloganYour company slogan

ContentsContents

Brief introduction of the Hoover companyBrief introduction of the Hoover company11

What is promotion?What is promotion?22

Why promotion?Why promotion?33

Background of Hoover's PromotionBackground of Hoover's Promotion44

55 How toHow to prompromoottee??

66 ResultsResults


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ContentsContents

ProblemsProblems77

The effects of the promotionThe effects of the promotion88

What can we learn from it?What can we learn from it?99

Promotion mix in Hoover's companyPromotion mix in Hoover's company11

00

1111

ConclusionConclusion1212

Alternative methodsAlternative methods


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Brief introduction of the Hoover companyBrief introduction of the Hoover company

SlogansSlogans

"It Lights...as it Beats...as it Sweeps...as it"It Lights...as it Beats...as it Sweeps...as it

Cleans"Cleans" -- 19351935

"Nobody does it like Hoover""Nobody does it like Hoover" -- 19931993

"Hoover gets it""Hoover gets it" -- 20042004


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What is promotion?What is promotion?

Definition of promotionDefinition of promotion

Activities that communicate the product or service and itsActivities that communicate the product or service and its

merits to target customers and persuade them to buymerits to target customers and persuade them to buy..


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Why promotion?Why promotion?

to support sales increaseto support sales increase

to create awarenessto create awareness

to communicatto communicatee with target marketwith target market

to inform about a feature or benefitto inform about a feature or benefit


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Background of Hoover's PromotionBackground of Hoover's Promotion

Time:Time: during the early 1990s, a period of economicduring the early 1990s, a period of economicrecessionrecession

Market conditions:Market conditions:most vacuum sales wermost vacuum sales weree replacement for wornreplacement for worn--outout

machinesmachines

firstfirst--time buys for people setting up hometime buys for people setting up home

AimAim:: to increase the sales of machinesto increase the sales of machines

to upgrade existing equipmentto upgrade existing equipment


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How to promote?How to promote?

Free airline tickets to America for anybody buyingFree airline tickets to America for anybody buying

one of its vacuum cleaners or other white goodsone of its vacuum cleaners or other white goodsbusiness large pieces of electrical equipment used inbusiness large pieces of electrical equipment used in

people's homes, for example washing machine andpeople's homes, for example washing machine andrefrigeratorsrefrigerators


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ResultsResults

Increase rapidlyIncrease rapidly (more than double the level of the(more than double the level of theprevious year)previous year)

A Disaster/Corporate failureA Disaster/Corporate failure (cost 37 million in(cost 37 million inredemption charges, without bringing about any longredemption charges, without bringing about any long--termtermgrowth in sales)growth in sales)

Hoover's British division was eventually sold toHoover's British division was eventually sold toItalian firm Candy.Italian firm Candy.


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ProblemsProblems

More demand for vacuum cleaners than theMore demand for vacuum cleaners than the

company could cope withcompany could cope with

Overwhelmed by the demand for free ticketsOverwhelmed by the demand for free ticketsLarge numbers of buyers tried to use their freeLarge numbers of buyers tried to use their free

flight vouchersflight vouchersan official piece of paper that you canan official piece of paper that you canuse instead of money to buy a particular product or serviceuse instead of money to buy a particular product or service

Insufficient preInsufficient pre--testing of the salestesting of the sales promotionpromotion


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The effects of the promotionThe effects of the promotion

Sales increase in a shortSales increase in a short--termterm

Mistrust perception of brandMistrust perception of brand

Tarnished brand imageTarnished brand image (A once highly respected brand(A once highly respected brandwith perception of mistrust)with perception of mistrust)


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What can we learn from the case?What can we learn from the case?

PrePre--testingtesting is essentialis essential -- to avoid costly failuresto avoid costly failures

laterlater

AAssessing the effectivenessssessing the effectiveness of sales promotionof sales promotion

Setting the total promotion budgetSetting the total promotion budget


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Promotion mixPromotion mix

Advertising

Public relations

Sales promotion

Personal selling

Direct mail


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The r ti i i the er cThe r ti i i the er c

s les r tis les r ti (free flights(free flights r tir ti ))

Definition of sales promotionDefinition of sales promotion::

The Institute of Sales Promotion defines salesThe Institute of Sales Promotion defines sales

promotions as "... a range of tactical marketingpromotions as "... a range of tactical marketing

techniques designed within a strategic marketingtechniques designed within a strategic marketing

framework, to add value to a product or service inframework, to add value to a product or service in

order to achieve a specific sales and marketingorder to achieve a specific sales and marketing

objective".objective".


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Problems in aProblems in assessing the effectives ofssessing the effectives of

sales promotionsales promotion

Other promotion mix elements could be the cause

of any change in revenue

Broader marketing mix changes may have affected

sales (e.g. product design)

Changes in the marketing environment could have

affected results (e.g. income levels)


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Alternative methodsAlternative methods

The lotteryThe lottery

AAadvertising to readvertising to rebulitbulit the imagethe image of Hooverof Hoover

vacuumvacuum cleanerscleaners

FFree vacuumree vacuum


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The lotteryThe lottery


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The advertisementThe advertisement

DDiscover someiscover some

other marketsother markets

which untappedwhich untapped

beforebefore


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FFree vouchersree vouchers


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Conclusion

free tickets promotion

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