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Sales Promotions and Personal Selling

The two-part case study posted by the student were:

1. Oakley Grove and Abraham Enterprises both market oranges and grapefruits. Oakley Grove has been in business for almost 40 years, while Abraham Enterprises has only been selling citrus fruit for about 18 months. Abraham Enterprises would like to take business away from Oakley Grove, and Oakley Grove wants to retain all of its customers. Explain which sales promotions each should emphasize in its marketing mix and why.

Since Oakley Grove has been in business four decades, retaining customers should be paramount. Expressing appreciation for customer loyalty may be as simple as a handwritten "Thank You" note, or a special discount for repeat business. With Abraham Enterprises, the focus is on attracting customers. This may be achieved through "special introductory pricing" that provides for stiff competition to Oakley Grove. A reference is included in the solution for this part.

2. You are the sales promotion manager for Vita-Balls, a new children's vitamin that is designed to be chewed like gum. Your company uses a pull strategy, and you are responsible for recommending sales promotion tools to accomplish this strategy. Describe three specific sales promotion activities you would recommend for Vita-Balls. Explain the reason for each of these activities.

The pull strategy is all about creating "hype" for a product whereas the consumers drive demand from suppliers. Examples in pursuing could be for Vita-Balls to be advertised in parenting magazines or with popular websites; to entice consumers to ask their local retail stores for the product. This part includes a reference as well; the entire solution is about 600 words.

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Solution Preview

1. Oakley Grove (herein after "Oakley) has a history that spans 40 years. Part of its sales promotion should be to promote and hype the stability of being in citrus sales for such a long time. Also, to retain its current customer base, the simple act of "giving thanks" to its consumers should occur (reference). This may come in several forms, such as a gracious "thank you" from the cashier if customers purchase at a store, or a handwritten, personal appreciation note from the salesperson who obtained a contract for a local grocer to carry Oakley fruits. Sales promotions may occur in the form of a free fruit on birthdays or anniversaries (for individual consumers), or loyalty programs that offer a discount based on repeat and bulk sales for larger sales (such as those to stores which carry Oakley goods). Taking the time to recognize customers for their business is a way to show that they are truly valued and one transaction will hopefully lead to a ...

Solution Summary

This two-part case study defines a potential sales promotion campaign when a new business has opened up in the terrority of a well-established business. The example includes marketing of oranges and grapefruits; includes examples of possible sales promotions to use. The second part addresses using the "pull strategy" of marketing; in which the product has garnered consumer attention and they are driving the demand at stores. The example used to explain pull strategy is that of a new vitamin product, Vita-Balls, that are chewed like gum. The solution is over 600 words and includes two references.