The marketing mix promotions - Essay Example

The changing landscape of competition within the fast moving consumer goods industry is forcing many changes the way traditional business models werefollowed more conventional methods of promotions. “Mounting pressure from retailers, rising media inflation and corporate cost directives is forcing manufacturers to reevaluate the effectiveness of their promotional expenditures. This reevaluation comes at a time when spending on trade promotions has never been greater. In fact, recent studies by Ernst & Young indicate that expenditure on leading branded goods now represents between 7 and 10 percent of sales revenue”. (Lucas) One way to cope with situation is to constantly innovate and innovate fast with balanced business strategy with right mix of buyers both giant retailers to the small corner shops.

(Byrnes, Berner and Zellner). Simply, if we take an example of detergents, they were largely promoted and viewed as commodities used for the cleaning purposes however the new paradigm shifts in the industry forced giants like P&G to look for more innovative ways of promoting largely popular brands like Tide. The new demands from the consumers, P&G through innovative promotional activities remodeled the same and Tide was projected something which provides an opportunity to be a good mother or good father or good wife.

I believe the idea of enhancing and brushing up the bond between the commodity and its immediate users is not the case as Revlon since long has been promoting that they are selling hope rather than cosmetics therefore the idea that the bond between the end user of the goods and the brand itself is not new. I therefore, believe that the positioning your brand as a proponent of generating the rarefied position of the brand to the level where it become almost a generic product with emotional attachment of users.

Having defined the position that the Through Tide, P&G is rather selling an opportunity to be a good wife, good mother or father, I believe that this further necessitate a different approach towards the promotional activities which P&G use to employ in the past. Since Internet is now taking over the place of traditional advertisement channels therefore a more focused approach is required to direct promotional activities to the internet. As the presupposition that the brands must speak to the consumers eye to eye rather than just focusing on what product can do for you therefore promotional activities for media should be focusing more on building up rapport between the consumers and products rather than projecting the apparent benefits of the product.

This is also important due to the fact consumers, over the period of time, have learnt a great deal about what Tide can do for them thus there is a need to be a more innovative as for as the consumers are concerned whereas the revised focus should be on the promotional activities with the trade also. Since P&G is also selling larger chunk of their brands through big retailers like Wal-mart which have larger bargaining power therefore the need is to be more dominating in promotional activities to the trade through creating more derived demand for brands like Tide.

BibliographyByrnes, Nanette, et al. "Branding: Five New Lessons: The P&G purchase of Gillette shows that innovation is key, and marketing is more diffuse and personal." 14 Feb 2005. Business Week. 16 Feb 2008 .Lucas, Anthony. "In-store trade promotions - profit or loss?" Journal of Consumer Marketing 13.2 (1996): 48-50.