Sales promotion has been defined as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective or creating an immediate sale. The incentive is the key element to the promotional campaign that can speed up the selling process and maximize sales volume.
The promotional sales campaign for Carabao Dang will employ consumer franchise-building promotions. These are activities that communicate the distinctive brand attributes and contribute to the development and reinforcement of brand identity. Today, many companies focus their sales promotions on short term performance. In contrast, Carabao Dang is focusing on building long-term brand preference for Carabao energy, which will help us achieve the ultimate goal of full-price purchases that do not depend on promotional offers. The consumer-orientated objectives we are focusing on are, increasing the number of first-time consumers, increasing consumption from and defending current consumers and building brand equity.
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As the Official Title Sponsorship of the EFL the sales promotion campaign intends to achieve mass marketing within football fans. Targeting hard-working, active, men and women from all socio-economic backgrounds. Nationally 71 teams are broadcasted every week and on a global scale, high-profile Championship and Carabao cup matches are shown. Therefore, there is a large platform to access the target group and achieve further international growth.
Carabao Dang is a well-established brand in football with a strong reputation, thus, many consumers may have already tried the products and the consumer purchase patterns may be solidified. To help generate new interest we will offer a sweepstake cash prize competition and taste challenges with rival brands. Sweepstakes are promotions where winners are determined purely by chance. The competition will offer a top prize of £50,000 with many smaller cash prizes. This will provide a financial incentive to nonusers, rival users and current consumers. Taste challenges will also create interest and help increase market share. They will take place at weekends in shopping centres in major cities which are likely to have large football fanbases, such as Manchester, London and Liverpool. This will provide consumers an extra incentive to try the product and potentially switch.
We will encourage new consumers to try Carabao energy drinks by providing samples at all Carabao cup matches and selected EFL matches. Although sampling is the most expensive way to generate trial, it is also the most effective. Sampling involves offering consumers a small quantity of the product for no charge to induce trial. Energy drinks meet the three criteria for sampling. They are of relatively low unit value, so samples do not cost too much, they are easily divisible as they can be poured into small cups for trial and the purchase cycle is relatively short, so the consumer will consider an immediate purchase. Samples will be provided outside the stadiums before matches begin. As the success of the brand depends not only on getting initial trial but also on inducing a reasonable percentage of people who taste the drink to repurchase it; during the game Carabao energy drinks will be available for purchase.
To build brand equity we will create male and female non-league football competitions for students and young adults. These competitions reinforce Carabao Dang’s investment into the community and emphasise the message that we want to improve all levels of the game. From growing participation in female football, we feel it is important to help promote the women’s game, which will additionally increase our reach. Tournaments will be provided locally within each county and each winner will receive some stock of Carabao Dang energy drinks and a sponsored kit. This will differentiate Carabao from other brands as it will allow us to build a personal relationship with the target audience in an environment where they are more comfortable. Furthermore, it offers a way to present the brand identity in an engaging way.
An advertising source is a person involved in communicating a marketing message, either directly or indirectly. Companies try and select individuals whose traits will maximise the influence of their marketing message to the target audience. They select celebrities depending on their source attributes, whether they are credible, attractive or powerful.
Credibility is the extent to which the recipient sees the source as having relevant knowledge, skill or experience and trust the source to give unbiased, objective information. For the source to be believable it must be trustworthy and have expertise. Expert and trustworthy sources are more persuasive than sources who are less expert or trustworthy. For example, Dove uses experts in skincare to recommend their products. The receivers’ processing mode associated with credibility is internalization. This occurs when, the receiver adopts the position advocated by the source because it is perceived to be accurate. Once the receiver internalizes an opinion it becomes integrated in their belief system and may be maintained even after the source of the message is forgotten.
A source attribute frequently used by advertisers is attractiveness, which encompasses similarity, familiarity and likeability. Similarity is a supposed resemblance between the source and the receiver of the message. If the communicator and receiver have similar needs, goals, interests and lifestyles, the position advocated by the source is better understood and received. Familiarity refers to knowledge of the source through prolonged exposure. It can be measured using a Q-score to see the percentage of people that have heard of the source. Likeability is an affection for the source as a result of physical appearance, behaviour, talent and personality. Spokespeople who are admired have greater influence and therefore value. For example, until his infidelity issues surfaced Tiger Woods was earning $100 million a year. Source attractiveness leads to persuasion through a process of identification, whereby the receiver is motivated to seek some type of relationship with the source and thus adopts similar beliefs, attitudes, preferences, or behaviour. The receiver may maintain the attitudinal position only as long as it is supported by the source or the source remains attractive. Unlike internalization, identification does not usually integrate information from an attractive source into the receiver’s belief system.
The final attribute is source power. A source has power when they can administer rewards and punishments to the receiver. As a result, the source may be able to induce another person to respond to the position they are advocating. For source power to have an effect there must be perceived control, perceived concern and perceived scrutiny. The influence process occurs through a process known as compliance. The receiver accepts the persuasive influence of the source and acquiesces to their position in hopes of obtaining a favourable reaction or avoiding punishment. Very difficult to apply in a nonpersonal influence situation as the communicator generally cannot apply any sanctions to the receiver.
Companies spend a huge amount on celebrities because they think they have stopping power. That is, they draw attention to advertising messages through the cluttered media environment and enhance the target audience’s perception of the product. However, there are a number of factors that need to be considered when choosing a celebrity spokesperson, including the dangers of overshadowing the product and being overexposed, target audience’s receptivity and risks to the adviser. A celebrity’s behaviour may pose a risk to the company and be very expensive.
One of the most important considerations choosing a celebrity is how well the individual matches with and is received by the target audience. Jamie Vardy is the celebrity we have chosen to endorse Carabao Dang energy drink. He has a fairy tale story which initially inspires and captures the attention of consumers. He came from non-league football to winning the Premier League showing his incredible work ethic, thus matching the active, hard-working personality for the target audience.
The main attribute that he encompasses is credibility because he has two energy drinks before every game and is extremely knowledgeable about their effects. He has done this throughout his entire career proving the benefits at every level of football. Furthermore, he continues to demonstrate benefits of using energy drinks as at the age of 33, he is currently the top goal scorer in the Premier League. A study conducted by Roobina Ohanian, found that the perceived expertise of celebrity endorsers was more important than their trustworthiness or attractiveness. Therefore, suggesting that celebrities are most effective when they are knowledgeable, experienced or qualified to talk about the product they are endorsing.
However, the return on investment is the most important factor in decisions making. The endorsement deal must translate into higher sales. Anita Elberse and Jeroen Verleun examined the economic impact of 347 endorsements from 180 athletes. They found that after the first six months athletes did not improve sales of brands relative to their competitors. Therefore, the impact of this endorsement may only be short lived and potentially not worth the investment.
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