12.5: Devising the Marketing Strategy - Promotion (at the Point of Sale)

Question 1

What is important to take note for products being marketed in more than one country?

Answer 1

• be aware of the legal constraints of different countries, in particular in relation to alcohol advertising

Question 2

What is the typically aim of price promotions?

Answer 2

• increase sales of existing products
• gain volume sales for new products
• attract new customer
• can be used to help shift old stock or discontinued lines

Question 3

What are the main types of price promotions?

Answer 3

• a specified amount or percentage discount on all or selected items
• seasonal sales
• discounts on certain days
• discounts for certain groups of people
• multi-buy’ or volume discount

Question 4

Name two other types of price promotions which carry less risk of devaluing the product image.

Answer 4

1. Link saves

2. Offering discounts on delivery

Question 5

When is free merchandize typically used?

Answer 5

Particularly common before a national holiday or any other time when alcoholic drinks are given as gifts

Question 6

Give an example of when limited edition packaging is used.

Answer 6

Some producers of super-premium wines offer exclusive, elaborately designed presentation cases for particular wines which are prized by wine investors and so contribute to the luxury brand image

Question 7

What is also beneficial of running competitions?

Answer 7

Most companies running competitions also use them as an opportunity to collect consumers’ contact details which they can use for further promotions, subject to data protection laws in the relevant jurisdiction

Question 8

How are many retail tastings run?

Answer 8

• Many distribution companies offer to host in-store tastings to promote their wines and will send a representative to talk about them
• Sometimes, they will arrange for the winemaker to come and tell the story of the wine

Question 9

How are hospitality tastings run?

Answer 9

• Many restaurants also now host wine tasting dinners where the wines are matched with different courses of food.

Question 10

What is the staff typically educated about? How?

Answer 10

• how a wine is made

- allowing them to taste it

Question 11

Who typically funds staff competitions?

Answer 11

Usually funded by the producer or the relevant trade body