The name of the store I visited is Meijer Retail Store, located in Midland, Michigan. In the store, I noticed three different brands of after-shave products, which had different promotional strategies. These brands were Davidoff, Adidas, and Revlon. Davidoff used in-pack promotional strategy whereby, its after-shave products, which included fragrance, shower gel, after-shave, and after-shave balm, were packaged together. This type of promotional strategy is customer promotion, and the technique is sale promotion category. The packaged after-shave products were packed inside a small box, and on top of the box, there were colorful images of the products, and explanations of how to use them. The original worth of the products was $128, if a customer was to purchase them individually. However, the retail price of the package was $65.
Adidas used on-pack promotion. This type of promotional strategy is customer-focused, and the technique used is a sales promotion technique. Adidas had packaged shower gel, fragrance, and after-shave cream in one packet. On top of every pack, there was an attached after-shave balm (50 grams), labeled ‘free gift.’ The price of the package was $ 45, where else, if a customer was to purchase all the products individually, the price would have been $100. For Revlon, I spotted some ‘Revlon-girls’ at the shelves. This type of promotional strategy is also customer-focused, and the technique is a sales promotion technique. The sales ladies would explai to the customers about the benefits of Revlon after-shave products, the different types of products for different skin types, and they persuade them to make a purchase. Every purchase of an individual Revlon’s after-shave product would be accompanied by a gift of the same product but of smaller quantity.
In-pack promotion is one of the common promotional strategies used by manufacturers in many retail stores. It involves packaging a product inside a secure packet, and then labeling the packet on the outside, to describe what is inside the packet, directions for use, and the benefits of the product. Images of the product are also included on the packet (Building Stronger brands through Packaging Promotion, 2003). In case of Davidoff, the manufacturer’s objectives were to increase the volume of sales, and attract more customers. In-pack promotional strategy is effective in marketing supplementary personal care products. In this case, after-shave products, such as shower gel, after-shave cream, and after-shave balm are supplementary products. Therefore, Davidoff’s strategy to have all the three products packaged in one packet was effective. This is because, by packaging all the after-shave products in one packet, it allowed the customers to purchase all the products from the same manufacturer, hence discouraging them from buying individual after-shave products from different manufacturers (Building Stronger brands through Packaging Promotion, 2003). Moreover, the strategy was effective in increasing the volumee of sales because; Davidoff would sell four different products in every single purchase. In addition, the colorful images of the contents of the packet helped to attract many customers.
In-pack promotional strategy adds value to manufacturers, retailers, and customers in different ways. To a manufacturer, in-pack promotional strategy is effective in increasing product purchase (Benefits of In-pack, On-pack, and IRC Coupons, 2011). Customers like to save their money, and when they find an opportunity to buy many products at a lower price, they usually make purchase decisions. Banding of supplementary products in single packets is more economical than selling them individually. Therefore, manufacturers are able to sell supplementary products in single packs at lower prices, hence encouraging product purchase among the customer (Benefits of In-pack, On-pack, and IRC Coupons, 2011).
To the retailers, in-pack promotional strategy motivates retail action (Burnett, 2010). In many cases, manufacturers help retailers to improve their shelf positioning, store arrangement and display, to create a more attractive environment to the customers. Some manufacturers design their own shelves where their products are displayed in retail stores. This way, retailers benefit by having their stores’ appearance improved, hence attracting more customers. Finally, in-pack promotional strategy is beneficial to customers because it allows them to purchase multiple products at lower prices (Burnett, 2010).