Friendly reminder: Click the blue text above to follow "FMCG Distributor Professional Consulting" for more marketing and distributor internal management insights.
Promotional Methods
Off-Season Promotional Method: Generally, seasonal products have distinct peak and off-peak sales periods. The common consumer mindset is "don't buy what you won't use for half a year," meaning people buy according to the season. Most businesses follow this pattern, stocking according to seasonal demand. However, some retailers now do the opposite: during the hot summer, they sell winter goods like fur coats, heaters, fur boots, and down jackets, which are usually slow-moving, and they sell well in certain cities. This is known as "off-season promotion." Savvy merchants often hold clearance sales for out-of-season items, and many consumers buy them to take advantage of the price difference.
One-Time-Only Promotional Method: Most merchants stock up on popular items, advertise heavily, and aim to maximize sales. But the famous Italian store, Le Er, does the opposite: it sells each item only once and never restocks, even if it's a hot seller. On the surface, this seems to lose easy profits, but in reality, it speeds up inventory turnover and generates greater profits because customers perceive the items as rare and rush to buy. This taps into the "scarcity" psychology, creating a sense of urgency. This method is similar to the "limited quantity sales" used by some domestic stores.
Cultivation Promotional Method: This involves using after-sales service to attract repeat customers. Stores selling appliances, watches, glasses, etc., keep customer records and follow up via visits or surveys to check if past purchases have issues or need repairs, while also introducing new products. The goal is to build goodwill and encourage purchases of new items. This works best when the store has a robust customer management system and maintains regular, in-depth communication.
Rotating Discount Promotional Method: This involves selecting a few items as special offers periodically, advertising them with large posters or flyers. Each round features three or four different items to attract customers with variety and curiosity. While these items may have low or no profit, they draw customers in, who often buy other regular-priced items as well, compensating for the discounts.
Everyday Low Price Promotional Method: Stores offer low-priced items daily to attract customers. Unlike occasional sales, this is a stable low-price strategy that builds customer trust, saves on labor and advertising costs, and gives the store a competitive edge. The discounted price should be at least 10-20% below the normal price to be attractive.
Highest Price Promotional Method: Typically, price promotions mean discounts. But some stores break the mold. For example, a store might advertise "Highest price in the city: braised duck at 5 yuan per jin," which sounds honest and implies superior quality. This can create a buying frenzy among customers who associate higher prices with better quality. This works for stores targeting high-income customers who seek status.
Comparison Attraction Promotional Method: During clearance sales, stores place the latest, most fashionable items on prominent shelves at two to three times the price of similar, non-fashionable items. The price contrast attracts attention. Fashion-conscious customers may choose the expensive items, while practical ones opt for the cheaper, non-fashionable ones, boosting sales of both.
Auction Promotional Method: In today's competitive retail environment, auctions offer a novel way to attract customers. Clearly state the items and starting bids. Auctioned items may sell above or below retail, adding excitement. However, auctions should be held occasionally, like on weekends or holidays, when customers have time to participate.
Promotional Tactics and Methods
- Discount Promotions: Selling items below regular price. Common forms include:
- Clearance sales: for seasonal or slow-moving items.
- Holiday discounts: during store openings, festivals, or anniversaries.
- Daily specials: offering one item at a low price each day to draw customers.
Prize Draw Promotions: Customers love trying their luck. Prize draws with attractive prizes like TVs or washing machines can quickly boost sales. Clearly state the rules, prizes, and eligibility, and ensure the draw is transparent to build trust.
Discount Offers: Selling at reduced prices during appropriate times like holidays or season changes. Methods include:
- Special price zones: designated areas for discounted items, but avoid selling damaged or spoiled goods.
- Holiday/weekend discounts: to attract shoppers.
- Discount cards: offering cards that give special discounts, either to selected customers or sold to expand the customer base.
- Bulk discounts: price reductions for buying in bulk, common for fast-moving food and daily necessities.
Contest Promotions: Engaging customers through contests like beer drinking or karaoke, which not only promote products but also increase store traffic and create buzz.
Free Samples and Trials: Set up counters to offer free samples of new products, encouraging customers to try and buy. For example, beauty counters offering free makeovers or perfume testers.
Loyalty Point Promotions: Encourage repeat purchases by offering points for each purchase that can be redeemed for gifts or discounts, building brand loyalty.
Giveaway Promotions: Offer free items to customers in-store, especially when introducing new products or when packaging or formulas change, to quickly gain acceptance.
Exhibitions and Joint Promotions: Invite multiple brands to hold joint exhibitions in your store, giving customers more choices and creating a competitive atmosphere that boosts sales.
Like this article? Share it on your moments!
About us: WeChat: FMCG Distributor Professional Consulting We provide 20 years of experience in FMCG distribution and management, focusing on distributor internal operations. We understand distributors better than manufacturers, and internal management better than distributors. Our senior marketing experts help your business grow.
Join our QQ group for learning and exchange: Group 1: 344257092 (full) Group 2: 231512457 Click "Read More" below to visit our micro-community for interaction and questions.