個案資料

Impex, a division of the South Indian firm KCM Appliances, dealt with kitchen, household, and home entertainment appliances. KCM’s managing director needed to decide on a year-end sales promotion for Impex. One option was direct-response advertising in the Times of India newspaper, which could potentially help Impex expand its reach in India. This option was in contrast to the previous year’s promotion, which involved collaboration with distributors and retailers in the Kerala region of South India. Deciding between the two options required a quantitative analysis to estimate the incremental volume and sales revenue gained from the previous year’s promotion. Those gains could then be compared with the break-even volumes required to cover the costs of the promotion with the Times of India. Impex also needed to consider a qualitative analysis by examining the tensions created by the two options, including channel relations versus brand awareness, an existing market focus versus a future market focus, and product management versus sales management. Should Impex repeat the previous year’s tried-and-tested promotion, or pursue the Times of India offer, whereby it could sidestep its local channel partners and directly sell to consumers?

This case is recommended for use in an MBA course, either a first-year core course on marketing management that includes a class on promotional management, or a second-year elective course on advertising and sales promotions or integrated marketing communications. After completion of the case, students will be able to<br><ul><li>evaluate consumer promotion schemes in a consumer durables context;</li><li>apply a quantitative approach to analyzing promotional programs based on incremental volumes and break-even volumes to cover incremental promotional costs and return on investment;</li><li>appreciate conflicts and co-operation between the sales and product management functions; and</li><li>understand the roles of advertising, sales promotion, and direct-response advertising for a brand.</li></ul>

• Consumer Promotions, Promotion Planning, Marketing Communications