Aileron lighting: the sales

promotion question
Sreeram Sivaramakrishnan and Mandar Bhide

breathing down your neck Sreerarm

Things seemed so much simpler in colege There were no bosses career was Sivaranakrishnar is
products and your
no whimsical retailers or distributors to cajole into stocking your Associate Professor at
not hanging by a thread. School of Business
fell into a reverie. Management, NMIMS.
Sunil was having his evening cup of tea along with a snack and he could not come Mumbai, tndia.
Ruminating about his job, he was slowly coming to the conclusion that if Mandar Bhide is Area
to finish his sales
up with ways to increase sales of his products quickly, he was not going
performances were looked at Sales Manager at Mars,
rotation with flying coiours. And Sunil knew that sales Mumbai, India.
performance on the field which
extremely ciosely in his organization. It was usually the all the pressures, he had kept his
tipped the balance for a meaty role after training. Despite
proceed, realized that a good
head and after an extensive analysis of all possible ways to
challenges. Along with his team, he had come up
sales promotion was the answer to his
promotions. His options consisted of two trade promotions and
with three options for sales
critical.
one consumer promotion. The right decision was
Administration (MBA) from
In March 2011, Sunil had completed his Master's in Business sought-after job from
one of India's premier business schools and had secured a highly
and Lighting Group (ACLG) was considered an ideal
campus. A job with Aileron Consumer provided. Sunil would be
it
option for a budding rmarketer for the variety and exposure that he would go through
as part of his training,
a Managerment Trainee for nearly one year and induction at the
functions. In May 2011, after a weeklong
short stints across various
to Pune[2] for the first leg of
Company's headquarters in Bengaiuru[1], he had been postedimportant stint fora period of
This was an
his training which was in the Sales [Link].
6 months where he needed to
make a visible
market in Pune which was the wholesale
He had been asked to work in the Budhwar Peth
larnps and had, at that time, 320 electrical
market for electrical fittings, accassories and from not just the city, but also the
outlets. Electricians, contractors and small retaiiers
purchases. Any brand, which was strong in
adjoining districts came to the market for theirvicinity.
markets in the
this market, sold well in other Budhwar Peth
well aware of the importance of the
Two months into the role and Sunil was create excitement
him, He krnew that he had to
market and this was adding to the pressure onpromotion could do that. He had three options in
sales
in his market and only a well-designed mind by that evening. He knew he had worked hard to DisclaiTer This case is writton
solely fo
front of him and he had to make up his
went over his projections again. purposes andcnt etended
line up the options but the finaB decision was crucial. He BuCceSstu or
10 r e h nanagerial
decisionmaking The authors
may have disguised names:
and ACLG3)
1. The lighting market in India had a presence in over
financial and other
recognizable inlormaton to
was among the fastest-growing FMCG companies in India. it segmerts within ACLG protect confidentality
ACLG The business
armployees woridwide.
40 countries with over 6,500

2045so621EMERALD EMERGRG MAPKETS CASE STUOVEsPAGE 1

DO 10.1108EEMCS 06-2016-0146 VOL 7NO 22017, p 1-8 OEmeald Ptlshng Lmed SSN
 institutional lighting. t had
included consumer care, trade lighting, commercial, and
revenues exceeding US$100mn and was growing at over 13 per cent.
billion, with a growth of 16.2 per cont omn
In 2011, the Indian lighting market size was [4] 9.2
compounded annual growth rate (CAGR) Of
2010. The Indian lighting market had grown at a
of the Indian lighting market was mainly influenced
12 8per cent from 2005 to 2011. The growth was because of the support of the Government of
(CFLs). This
by compact fluorescent lamps made t
energy-elficient lighting. The govornmont had
India for promoting investments in indoor, commercial and outdoor lighting applications
mandatory for luminariesAamps used in starndards for
government had also developed national
to have star rating labels on them. The products and encouraged enhancerments in existing
testing the perftormance of lighting helped in market consolidation by fitering
out
technology for nevw applications, which had market.
non-standard products that were present in the
policies, SUch as
had been focusing on a set of new aggregate dermand
The govenment
programme. These policies had transtormed the market by
the "Bachat Lamp Yojana[5]" from 67 million annually in 2005, to 340 million in 2011. The
increasing the sales of CFLs at a discount of over 70 per cent to 15 (at the
programme was aimed at providing CFLs
market price of 80-100.
lowestwattage of CFLs) as opposed to the estirmated at
revenue generated from the sales of CFLs in India could be
In 2011, the
sale of CFLs had grown at a
CAGR of 27.3 per cent from
billion. The revenue from the CAGR of 31.1 per
3
produced in india had incGreased at a
2005 to 2011. The volume of CFLs manulacturing capacity had increased at a CAGR of
cent from 2005 to 2011 whereas the
Over 40 per cent.
to 52 in 2011. The
had also increased from 12 in 2005
The number of CFL manufacturers had imposed the
because most state governments
demand for CFLs had increased government establishments
in commercial and
regulation of replacing incandescent iamps 12.5 per cent to 5 per cent which
was reduced from
with CFLs. In some states, VAT (6] market.
encouraging new manufacturers to enter the
resuited in an increase in demand contributor to
billion. The business was still a small
ACLG had an annual turnover of 2.5 The company
industry had put lighting in focus.
the group; however, the growth of the as media spending was
concerned. It was
followed a very conservative approach as far
profits.
always a snall percentage of their net
market
2. The Budhwar Peth
business in the Budhwar Peth market. Its
ACLG had been struggling with its lighting came mainly via the sale of CFLS, which
business, like other cornpanies in the sector,
losing sales in the last 2 years
comprised almost 80 per cant of the total sales. Iit had been
brands such as DRM (Table I).
in the face of tough competition frorn more visibBe
the sales of CFLs. CFLs, which were
The major conoern for Sunit was how to drive
commoditized. Most shoppers asked
produced in the torm of buibs or tubes, were highly
walked off with whatever brand the
for a particular power (watlage) of the lamp and brand by name. The
shopkeeper offered. Very rarely did shoppers actually seok a spocitic

Table I Sales
Previous year Previous year This ye Growth over
Q1 sales Q1 sales previous yaar (%)
CFL 02 sales

223,000 234,000 190.000 -18.80

ACLG
175.000 162,000 217000 33 95
DRM 414,000 35
Labonells 402,000 400,000
Source: Greated by the authors

7NO. a 2017
PAGE 2EMERALD EMERGING MARKETS CASE STUDIEs VOL
indifference among shoppers was so much that cases of unscrupulous shopkeepers
selling inferior quality lamps made in China were also reported in the market.
The sales success of any company in this market was largely dependent on the support of
the retailers. Without the support of the retailers, it was virtually impossible to stay in
business. Sunil gathered this in his first week at the Budhwar Peth market. He called this his
"week of absorption" eand simply sought to gather as much information as possible. He was
assisted by a Sales Otficer (SO) who knew a lot about the businoss having spent three
years in the company. After the first week, it was apparent that the SO and his team were
looking towards Sunil to provide some guidance because he belonged to the managernent
cadre. The pressure was not pleasant for Sunil. His first set of instructions to his sales
representatives was to focus on the basics. He also paid a lot of attention to his SO's
collage(7] data, his sales stories, his sample kit, his grooming and other such details. He
did not find anything amiss with the SO.
lighting business and the
Sunil also realized some important points of distinction between the
FMCG business. The lighting business unlike the FMCG business was not a cash and carry[8]
ACLG but had to give at least
business. The distributors enjoyed a credit period of 21 days from
spoilt for choice, released the distributor
a month's credit down the line. Retailers, who were
result of which, almost 40 out of the
payments according to their own whims and fancies as a
distributor because of bad debts and hassles of
320 outlets were not senviced by ACLG's
was present in only 32 outlets. These
recovery. Out of the 280 so-called "clean" outlets, ACLG
in the market. Refer to Figure 1 for the channel
Outlets were doing all the business for ACLG
schemes in the market.
structure and Tables Il and Ill for the existing pricing and

3. The way forward

with many
that his SO had good working relations
Over the next few weeks, Sunil realized drive volumes, Sunil needed to do
outlets. Common sense suggesled that to
of the "clean" buyers. Sunil's SO,
things- sell more to the buyers and convert non-buyers into knowing the SO
two non-buyers too, with sone of them
fortunately. had good relations with the builbs came wth a 1-year
converting non-buyers was that CFL
by name. The difficulty in shopkeeper had to replace defective pieces until a year after
warranty post sale. So the accepted practice and was,
of another brand was not an
selling. Repiacing a buib with thatcustomer. However, the retailer, if sufficiently motivated,
the
at times, not accepted by
could convince his custorner to use another brand[9].

distribution channel
Figure 1 Structüfe of the
ustomer
Manufacturer
Distributor/Stockist Retailer
(ACLG)

ACLG
pricing (Budhwar Peth) offered by
Table Il Disiribütor (o stockist) Nett siockist landing pice
Net seling price (including 5% VAT)
(stockist landing before VAT)
SKU 9690.
92.29 98.81
CFL 5 Watts 94.1 99.76
CFL 8 Watts 95.01 101.65
CFL 11 Watts 96.81 135.86
CFL 15 Watts 129.39 159.61
CFL 20 Watts 152.01
20 WFree
On every 100 CFLs, 0 CFL
CFL 23 Watts
Scheme for Distributors.
Notes: N.B: QuantityPurchase
authors
Source: Created by the

ARKETS CASE STUDIES PAGE S

VOL 7NO. 22017ERALD BMERCGINs
 disteibutor
Table ll Competition prong (n )to rotaler incusve of VAT aüripg
margnot
Labonells DPM
SKU ACLG

104 102
CFL 5 WNatts 102
104
CHL 8 Watts 104
105
CFL 11 Watts 105 107
107
CFL 1S Watts 107 109
43
|43 44
CFL 20 Wats 168
CP. 23 Was 70
of 20 Wats Free, it can
Notes uantity purehase schema for tetsitors On every 100 CFLs, 10 CFLs tor retailors across
for
be assumed that dstributor nargins and quantity purchase schemes are the same
al conpanios

Sunil made it a point to have long dscussions with the distributor after each of his market
(PT)
visits. Sunil's suggostion of dumping[ 10] CFLs at the buying outlets was summarily
2018 dismissed by the distributors. They said that f the material was dumped against the
December retailers' wishes, retailers would tend to delay payments which would alfect the collection
cycle. Because there was hardiy any difference belween CFL bulbs of the companies of
equai stature (e.g. ACLG, DRM, Labonells etc) sales were purely relationship based.
04 Time was running out for Sunil. He had been in the system for over 2 months now. His so-called
31 honeymoon period was over and the pressure to deiver was increasing by the day. He came
22 to the cornclusion that there were no sales process relaled changes that he couid make. He also
At
Venkatagiri realized that no major bvanding campaign was forthcoming Irom his company. His destiny was
in his own hands. He had to come up with effective sales promotions which would enable him
to get the attention of the retailers and/or pull consumers to buy ACLG CFLS.
Sirish Sunit recalied from his marketing courses in colloge that sales promotions could be of
different types. Trade promotlons were promotions targeted at Intermediaries such as
UNIVERSITY, wholesalers and retaitars. This inciuded trade aliowances (ol-invoice allowances, extra
merchandise, slotting allowances), trade incentives (billback allowances. point of purchase
(POP) dispBays, cooperative advertising) and contests among others. Consumer
promotions were targeted at the consumers of the product. This included discounts.
CHRIST rebates, loyalty progranmes, premiums, sweepstakes, contests etc.
He decided to sit with his sales team and olicit ideas for saies promotions. Sunil called his
by sales tean on a Sunday and as some compensation, he organized a bultet of snacks from
Downloaded some of Pune's best eateries. His team vho wore Initially grumbling about the loss of a
holiciay perked up on seoing the innovative spresd.
Sunil kicked off the discussion by outlining the issues in the
it was
market. He also mentioned that
inperative for all of them to come up with solutions which could stem the
rot or there
could be serlaus consequences. He laicd down a target for
increasing the number of outlets
selling ACLG CFLs o over 100 in the nexi six months. But they had to start
in the net three fmonths. showing resuits
Their current average sale per productive outlet was more
company was relying too much on those 32 outlets. Issues than 6.000 CFLs in [Link], the
at any or more of thase outlets would
mean a significant drop in sales. Also. bacause these
deaBers knevw that ACLG was
on them for business, they had
credit. bacome more dornanding in terms ol schoNneS, dependent
Boing in the holesale market, it was margins
to be present in almost every and
because Gach wholesaBer in Budhwar Peth hadecsentiai
his own setof loyal customers. outlet
The team started by analysing ali the
several years. Thoy discussed somepromotions conducted in the
of ACLG's promotions market over the past
conducted cornpetitors and identified success factors.
by along with promotions
options for sales prornotions. The The team then tookod at variOUs
discussion wernt wall into the evening and the team
carne
PAGE 4EMERALD ENERGNG MAETs CASE STUOEs vOL 7NO 2
a017
up with nearly 20 practical ideas for sales promotions. After further debate and discussion,
they pruned down the list to two trade promotions and one consumer promotion. Sunil
asked his team to continue thinking about the problemn but said that he would refine the
three promotions and then seek approval from his manager.

4. The Honda Activa promotion

Based on an idea from one of his sales team members, Sunil fashioned a trade promotion
based on the Honda Activa. The Honda Activa was a much sought-after scooter in Pune in
2011. Demand was so high that there was a waiting period of six months for the scooter
The price of the Activa in the open market for a retailer buyer was 74,000. This included
an extra payrnent of 10,000 for immediate delivery. Sunil struck a deal with the local
Honda showroom wherein he would place a bulk order for 10 Honda Activas in a month's
time. The showroom was willing to sellhim the scooters at 58,000 a piece.
The existing promotion is described in Tables ll and ll where the distributor could got a
20-Watt CFL[11] free on every 10 CFLS purchased. It roughly translated into a scheme of
*13 per piece. He further hiked the retailer landing price[ 12] by' 10 (the retailer Janding for
a 20-Watt CFL went up to 153). Thus, keeping the stockist margin intact, Sunil hada
budget of 23 per piece. Sunil floated a scheme in the market for retailers- buy 2,500
pieces of CFLs, get 1Honda Activa Free. The caveat here was that the free 20-W CFLs
were not to be given to these retailers.
Sunil then focused on other such schemes, wherein the perceived value of the incentive
was much higher. This was arrived at by striking bulk deals with the providers. Other
schemes which he floated on lesser slabs were a trip to Goa[ 13], a trip to Thailand, a digital
carnera and so on (Table iV provides slab-wise details whereas Table Vprovides cost
detaiis). When retailers calculated their benefits on every slab they found that their highest
scherme. He
benefit came from the highest slab of 2,500 pieces, that is, in the Honda Activa
slabs.
was hoping to be able to tap smaller retailers with the lower
foreign trip, would resuit
Sunil's team was confident that the lure of a Honda Activa and the
cornplete the slab. Sunil, in his
in more enrolments. Once enrolied, the retailers had to - Honda Activa Slab - 70
slab
proposal, gave the following estimates of enrolments per
customers, LCD TVS- 20 custorners, Air conditioners- 20
customers, Trip to Thailand- 45 hoped to get 10
customers. He
CUstorners, Laptops- 30 custorners, Trip to Goa - 40 of more than 200
would ensure a coveráge
custorners in each of the othar slabs. This
and saies of more than 3,00,000 CFLs. Sunil was contident about
320
retailers out of the

Table fV Honda Activa promotión

Scheme on ACLG CFL
December 2011
Slab scheme period from 19th Septernber to 20th
Sales Prize
taxes and duties (registration and
2500 PCS One Honda Activa on road inclusive of ali
insurance) and five days alt inclustve
1500 PCS Trip to Thailand for one person for four Cnights
1200 PCS 32-inch LCD TV Model No. 32 LD 341
CR
One ton AC model No. LSA 3
950 PCS disk, 1 GB Ram, Atom processor
750 PCS One mini faptop, 10-inch LCD, 160 GB hard inclustve retun on
three day's
500 PCS Goa trip for two persons for two night's and
second class sleeper train ticket
400 PCS Washing machine model No.VSP70 LPW-SFK
250 PCS One digital camera
3 PCS. Super delux iron MRP 2,550/
100 PCS
or 12.5% as per VAT rules applicable; 2. This cancels our
Notes: Terns and conditions: 1. Taxes 5%made within 30 days; 4. Any scheme is applicable only if
price list; 3. All payments to be exchang6d in lieu of cash; Sunil Kumar 98xxx0OXx8
previous
payment is made by due date; 5. Gifts wil not be

VOL. 7NO. 22017 EMERALD ENERGING MARKETs CASE STUDIESPAGE s

 Table V Onda AdlVe provo Parcetved value in )
Cost to ACLGdistributor (in )
Prze

Honda Activa 58 000

Banokok trip 34,000
LCD TV 27 000
1ton AC 21.500
17 000
Laptop 10.000
Trio to Goa
Washing machine 9 000
6000
Digtal camera price- 1.830
Super delux iron (3 pcs) At distributor landing

and also doing some busine6S

with the 40 erring
Convertuing a [Link]-buyers into buyers the target of 3,00,000
and thus achieving way beyond
Outiets, by taking cash in advance at 10 per pamphlet to
printing 10,000 pamphiets
(PT) CFLs. Sunil estimated an expense of
2018 publicize the scherne among retailers.

December 5. The lucky draw rest of the

salespersons pointed out sornething the
During their -discussions, one of the shops operated
almost 10--12 h in their shops. The
04 team had also noticed. Retailers spent displays, pack
to open the shop, arrange
22:31 trom 10 am. till 9 p.m. andit usualy took 30 min Additionally, the cash
up the POP rmerchandise in the
evening and downing the shutters. also a very
which was
accounted for on a daily basis
At sales and cash payments had to be Sunil felt that
Venkatagiri not have much of a social life.
tedious task. As a result, the retailers did
would be a good break from the monotony for
hosting dinner at a nice restaurant or hotei wouid not mind some light indulgences (which
them. He was also aware that the retailers
session). But taking the retailers to a fine dining
Sirish Coutd be a few drinks or a smali DJ/dance strong
would have to be backed up with
outiet would be too expensive for the company and
UNIVERSITY, rather than a surprise outing.
sales. So Sunil decided to offer this, as a reward,
purchased by these retailers and
The idea was to introduce a scheme where CFLs were
upon completion of slabs. These
give therh a cerlain number of predeternined coupons the day of the party and the
cOupons would then be entered into a lucky draw basket on
would also ensure transparency in the
CHRIST wirners would be drawn in front of everybody. This
always prided itself on. There would be a host
entire process, something that the company
and assured gifts to
by of prizes, starting with a mega prize (a car), several smaller prizes
Downloaded every invitee (an appreciation plaque ora show piece).
The main attraction of a lucky draw was that even the smailest buyer couid win the biggest
prize. As a retailer vocalized:

Hit was your day, you can win even witih a singie coupon and somebody with even 100 coupons
may win nothing.
No doubt, retaters would stillcalculale the nat landing price for CFLs, so the promotions
still needed additional rate support fron the company.
An example of a successtul lucky draw was the one used in the Dubai Shopping Festival which
was amang the biggest shopping festivals in the world. A host of brands, products and
companies sold their products in this highly cosopolitan irarket. Taurists from all over the
world converged in this casis of the Middle East and splurged in tha Duiy-Free malls. Buyers
were glven a coupon for every purchase ihey made avor a specitic amcunt and the coupons
were put into a giant bail. There were a lot of pizes to be won, inckuding fres stays in 5-star
hotets, world tourg, sports cars and so on. The draw was then hald in tul public view and the
winners were declared on the last day of the shopping testival. The glory of uncortainty was
such that there was once a shopper who won a Lanborghnt on a purchase of just 100 AED

PAGE 6EMERALD EMERGING MARKETS CASE STUDIES VOL7 NO. 2 2017

 half A
(Arab Emirates Dirhams- roughly equal to 1,700). The value of the car was around
million dollars (excluding local import duty and other registration fees and taxes)[ 141.
strongly
Lucky draws were favoured by most retailers in Maharashtra because they
believed in the element of luck. Lotteries were quite widospread in the state. Sunil also
calculated the cost of the lucky draw.
Total no. of retailers to be enrolled in the scheme - 150.
Total target for CFLs in the quarter- 300,000.
Average sale per active retailer for the quarter- 2,000.
Retailers
Based on the figures, Sunil drew up a local distribution plan as given in Table VI.
were expected to arrive at such parties in groups. The more they purchased, the more
coupons they would demand. Hence, when designing a lucky draw scherne, it was
however
important to keep increasing the coupons incrementally at each slab. The retailers
coupons entered into the draw also increased the
also realized that the number of
probability of winning. Sunil made a list of prizes and their cost (Table VII) for the promotion.
parnphlets and
Sunil also needed to organize the printing of the lucky draw coupons,
a trernendous
invitations which he estimated to cost 100,000. If successful, it would give
that too
boost to ACLG's image in the market- not too many companies gave away cars,
this scheme was that if sufficient
in view of everybody in the market. The downside of
in the lower slabs,
enrolnents did not happen or a majority of retailers enrolled themselves
The communication of the lucky
the cost of sales per piece would shoot up tremendously. advance,
is, 3 months in
draw had to be at the beginning of the scheme period, that
even the menu for the dinner[15]. Once it was
including the list of gifts, the venue and
enrolment in the scheme confirmed, the company had to
conveyed to retailers and their sales frorm the event.
amount of
honour that commitment even if it did not meet the planned would be met and Sunil
the numbers
Sunil's sales executive, however, was convinced that
numbers committed by his sales executive,
banked on his executive's experience. With the
Sunil was planning to achieve rnore than his target.

Table VI
No. of cOuDons Total no. of
per retailer Coupons to be issued
Expected retailers Sale
Slab

1000+
60,000
2000-+ 40 80,000 125
3000+ 25 75,000
8 120
15 60,000
4000+ 50,000 15 150
5000 + 10 535
Total 150 3.25,000

Table V
Par unit cost () No, of unrts Total cost ()
item

300,000 300,000
Grand prize (smal! hatchback car-ex showroom) 75,.000 75,000
2nd prize-110-CC motorcycle (ex-showroom) 15,000 15,000
3rd prize-lully automatic washing machine 9,000 1 9,000
4th prize-160-Itr relrigerator 2 10,000
5th priz6-mobile ohore 5,000
500 535 2,67,500
Cost of dinner barnquet (per head) 50,000
100 500
Menento for overy invitee Total cost 7,26,500

VOL 7NO. 220n7EMERALD EMERGING MARKEeTS CASE STUOIES PAGE 7

 6. Local coupons
Ihe final promotion under consideration was a consumer prornotion. This was the resuit of
an insight from an older salesperson who had outlined the idea. There was a distributor in
each local area to cater to retailers in that area. These distributors were local residents.
most of whom had many years of experience in the business. They also had strong local
contacts with nearby theatres, eateries, doctors, salons, beauty parlours and other retail
cutets. The senior salesperson mentioned that cashing in on the distributor s strong local
presence could help him in running a successtul consumer offer. After lots of discussions.
the final plan was to tie up with other local establishments and offer a discount coupon
sheet with every CFL purchased to the end customer. So whenever a consumer bought a
CFL she would receive the set of coupons which would have a discount COupon for the
local movie theatre, the local beauty salon, the local fine dining restaurant, the local
gament store among other offers. Because these discount offerings were in the areas
close to the residences of end customers, there was a very high relevance of these
cOupons and Sunil expected the redernption rates also to be very high[16].
The success of the scherne. however, hinged on building awareness among end
Consurners. There were two vehicles for this communication tO reach the customers. First,
the company. needed to use newspaper inserts every Sunday and second. have pOsters,
danglers and other POP materials displayed at the retail outlets. POP materials were not
reliabie because fhere was a threat frorn competing brand merchandisers to either tear it
down or stick their own posters over the company's collateral.
Sunil felt that with every house requiring at least 3-4 CFL bulbs, he could hit a conversion
rate of 1 CFL per every 2 households reached. The costs to be incurred for this promotion
are given in Table Viil. The effective cost per CFL to the company was coming out to
3.5.
An exanple of how the coupon given to every customer with the CFL they
look like is given in Figure 2. purchase wili
The big draw in this scherme for end customers was that they could save almost 3-4 times
the cost of the CFL by just using these deals, for products and
services of regular use.
Redeeming even one of these coupons would greatiy benefit them. ACLG, if successful in
this, could also include more estabishments and service providers to partner with them
which would help their standing in the market. They could aiso repicate the
idea in other geographies. success of this

7. Decisions
Sunit realized that though he had three options to present to his
Keywords.: to be ready with his superior he also would have
Promotion, recommendation. And his choice would have to be based on
sound
criteria. In his mind, he had to weigh short-term quick
Saies promotions, building. He aiso understo0d the imnportance of good sales against long-term brand
Consumer behaviour distributors. He recalled his marketing courses and knewrelationships with the retailers and
that all sales promotions were not

Table VIll Cos

Average no. of househotis to be rsached
Cost of printing 1 handbill 600.000
Total cost of printing handbitis 05
Total coupons requlred 300,000
Cost of printing 1 couoon 300.000
Total cost of printing coupons O5
Handing charge te be given to retailer 150,000
Total handling charges 1par coupon
Newspaper agency charge for Free Stancing Inserts (FSis) 300 000
Total cost of newspaper lnserts per insert
Total cost'of the activity 300 000O
1.060 0o0

PAGE &UELD BMERGNG MARKETS CASE sTuDIESOL 7NO, 22017

 Figure 2 Mock-up of a coupon sheet

CambridgeMen's
Wear Lakme Salon
20% off on next 30% off on total bill
purchase over of over 3000

Esselworld Inox Pune

1 ticket free with IBuy 2 ttckets on any
every 3 tickets weekday, get a 2
purchased free

Hangover-Restobari
Buy 1 get 1 free on I
Metro Shoes
Get 500 store
drinks between 4-7 credit for purchases!
piT on weekdays Over 3000

ACLGCFL
rtRest Ngtg arter

because there
the sane. And sometimes a sales promotion was like a double-edged sword
Coutd be negative consequences as well.

Notes
1. A iarge city in Southen India.
2. Amid-sized city in Western India.
3. From the "indian Lighting Market Outiook to 2016, Aug 2012".
4. slands for Indian Rupee and in 2011, 1US $ was equal to 46.
5. Literally translating into "Powersaver lamps scherne".
is based on the value added at
6. Value Added Tax -a forn of taxation by the Government which
each level in the supply chain.
7. The cailing and coverage plan
wholesalers or other customers (retailers, professional
8. Cash and carry is a form of trade in which
in cash and carry the goods away
Users, institutional buyers, etc.) settle the invoice on the spot
themsetves.
replacement brand used and a return for the replaced
9. This thus counted as a sale for the
brand.
retailer with stock usually on cradit. This usually
10. Durnging referred to the practice of loading ato clear his linited shelf and store space.
forced the retailer to sell because he needed SKUs
20-watt CFL. For the purposes of this case, the other
11. Restrict calculations only to the popular
can be ignored.
intermediary to source the goods. This was
12. Landing price relerred to the price paid by the
internediary.
9quivalent to the cost price of the goods for the
13. A popular holiday destination in Western india.
ae/en/deal/dubai-shopping-festivai/promotions-ratfles-dst/ralfles-dst/intiniti
14. www. dubaiovents.
[Link]
The hotel woulad not charge for Sunil and his
15. Dinner and drinks were estimated at 500O per invitee.
(oarn.
Groupon in India in 2011.
16. There were no websites such as

Corresponding author
contacted at: [Link].6du
Sreeram Sivaramakrishnan can be

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