Promotions Build Sales; There are Many Ways to Do It

Allen Potash, the great advertising and marketing guru from PepsiCo Inc., once said: “Trying to save money by stopping advertising is like trying to stop a clock to save time. It can’t be done.” The same holds true with marketing.

We know that marketing is an essential key to success in any business. We know that promotional programs build sales, market share, brand awareness, stability and great companies, yet we cannot measure all the effects of these programs just during the promotional time periods alone.

These programs will increase sales immediately, but sales will continue to grow long-term from these programs, especially when these programs are consistent.

In other food industry segments, we have long-term data and statistics on promotional marketing and advertising programs.

ADVERTISING WORKS

As an example, statistics have shown in the soft drink industry that when name brand soft drinks are promoted in grocery stores with a price-off display, sales will increase on average 30 percent to 35 percent. When combined with a display ad in a local newspaper, sales increases can be as high as 35 percent to 55 percent during the promotional periods.

I learned at a young age the power of marketing. I learned how to create and execute marketing programs from my father, a former Pepsi-Cola bottler. I also studied successful businesses throughout history and found that marketing was one of the strongest commonalties among these businesses.

I continue to successfully use the power of marketing in my own business, Cuda Coffee Co., a specialty coffee vending operation based in Spokane, Wash.

MARKETING TAKES MANY FORMS

I have marketed products through promotional sweepstakes and contests, sponsoring local and regional events, product specials, sampling programs, trial programs, advertising, and creating and executing local and national marketing events.

I have leveraged marketing programs to obtain incremental advertising exposure, including prizes and co-op offsets for marketing programs for many types of businesses in many industries.

One key is to cross promote with others to create bigger promotions and increase the total advertising.

This has included giving away everything from teddy bears to cars to Grammy award tickets complete with airfare, hotel, limousine and spending money. I have twice given away a newly constructed home.

USE YOUR IMAGINATION

Some of the more novel promotions I have done include:

• A limited edition collector coin whereby 15,000 coins were minted and given away while tying in the sales of products with raising money for a charitable event.
• A live cow in a grocery store sweepstakes.
• A new car at a half time college football game.
• Compressed t-shirts in the shape of a football bearing one of my company’s names on it.

The t-shirts were shot into the bleachers and the fan catching the one special shirt with the words “you won” received a new car.

I am presently deploying these techniques in the self-serve specialty coffee industry. This is a new niche market that has been created over the past seven years with high-end self-serve specialty coffee machines.

My past seven years of gearing up in this niche market are now paying off.

My company’s marketing programs are all inclusive, with sales of machines and products to customers throughout the country.

In addition to the many inherent benefits of our coffee machines and the great tasting drinks they produce is the ability to promote the machines and drinks with marketing and advertising programs. We have created many programs and have the ability to customize programs to ensure the success of our customers.

USE PRICING TO PROMOTE PRODUCTS

Vending machines can be set to various prices. A business may offer its customers and/or employees a special monthly low price on a particular type of coffee drink such as a latte. Each month, signage on the machine can promote a different special drink of the month.