Shoppers ‘Delight’ a large retail store, had above-average quality and competitive prices
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Advertising
Case (20 Marks)
Shoppers ‘Delight’ a large retail
store, had above-average quality and competitive prices. It advertised its
retail promotions in local newspapers. Its TV advertising was mainly aimed at
building store image and did not address retail promotions. The management kewn
it well that they had to advertise their retail promotions more, but they did
not feel comfortable with the effectiveness of persent efforts and wanted to
better understand the impact of their present promotions. To better understand
the effectiveness of the present efforts, a study of advertising exposure, interpretation,
and purchases was undertaken. Researchers conducted 50 in-depth interviews with
customers of the store’s target market to determine the appropriate product
mix, price, ad copy and media, In addition, the store, s image and that of its
two competitors were measured. Based on the research findings, different
product lines that would appeal to the target customer were selected. The
retail promotion was run for a full week. Full-page advertisements were
released each day in the two local Hindi newspapers, and also in one English
newspaper that devotes six pages to the coverage of the state. Each evening, a sample
of 100 target market customers were interviewed by telephone as follows:1
.Target customers were asked if they had read the newspaper that day .This was
done to determine their exposure to advertisement.2.After a general description
of the product lines, the respondents were asked to recall any related retail
advertisements they had seen or read.3.if the respondents were able to recall, they
were asked to describle the ad, the promoted products, sale prices, and the
name of the sponsoring store.4.If the respondents were accurate in their ad
interpretation ,they were asked to express their intentions to
purchase.5.Respondents were also asked for suggestions to be incorporated in
future promotions targeted at this consumer segment .Immediately after the
close of promotion,500target market customers were surveyed to determine what
percentage of the target market actually purchased the promoted products. It
also determined which sources of information influenced them in their decision
to purchase and the amount of their purchase. Results of the study showed that
ad exposure was 75% and ad awareness level was 68% and was considered as high. Only
43% respondents exposed to and aware of the ad copy could accurately recall
important details, such as the name of the store promoting the retail sale. Just
43% correct interpretation was considered as low. Of those who could accurately
interpret the ad copy ,32% said they intended to respond by purchasing the
advertised products and 68 per cent sad they had no intention to buy. This
yields an overall intention to buy of 7%.The largest area of lost opportunity
was due to those who did not accurately interpret the ad copy. The
post-promotion survey indicated that only 4.2% of the target market customers
made purchases of the promoted products during the promotion period. In terms
of how these buyers learned of the promotion,46% mentioned newspaper A(Hindi)
,27% newspaper B (Hindi),8% newspaper c( English), and 15% learned about sale
through word-of-mouth communication. The retail promotion was judged as
successful in many ways, besides yielding sales worth Rs.900,000.However ,management
was concerned about not achieving a higher level of ad comprehension, missing a
significant sales opportunity. It was believed that a better ad would have at
least 75% correct comprehension among those aware of the ad .This in turn would
almost double sales without any additional cost.
Answer
the following question.
Q1.
Give an overview of the case.
Q2.
How and why the retail promotion was run for a full week?
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