Using promotion to boost sales and brand value
A Kellogg's case study

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Page 2: Promotion

Kellogg imageThere are two reasons for promotion. It:

  1. lets consumers know about products and services
  2. tries to encourage consumers to purchase the product or service, often by telling them about the benefits they will gain.

Promotion is just one element of the marketing mix, known as the 'four Ps'. These stand for:

  • Price
  • Product
  • Promotion
  • Place.

A marketing mix means that the business must have a high-quality product, for sale at a price that is reasonable and at places where people can easily buy it.

Promotion informs customers about the product and tries to encourage them to buy. Methods of promotion include advertising, public relations, value-added offers (e.g. three-for-two promotions or buy-one-get-one-free), price reductions, free gifts, coupons, loyalty rewards and point-of-sale material.

Kellogg arranges effective promotions around more than just the consumer. There are three key elements that all have to be integrated and work together smoothly. These are the:

  • Consumer: who can be encouraged to purchase by an attractive and exciting offer.
  • Advertising: the consumer promotion needs to be brought to the public's attention with a strong message.
  • Trade: Kellogg needs them to support the promotion. Shops and other sales outlets should know the advertising is coming, so they can buy in enough stock and benefit from the promotion by displaying point-of-sale material.
  • Bringing these areas together involves accurate planning across all parts of the business. Kellogg management has a strategic overview of the whole process. This ensures all elements of the business are working together to create what is called, at Kellogg, an 'event'.

Kellogg's | Using promotion to boost sales and brand value