Question

Spice and Cheese Burgers has various outlets to sell burgers and deal with the customers directly. This channel of distribution was adopted by the organisation, keeping in mind the nature of the product. In order to boost its sales, the management has decided to introduce a ‘By one Get one free to its customers.

1. Identify the channel of distribution used by Spice and Cheese Burgers.
2. Briefly explain the channel of distribution identified in (i) above. 
3. Which element of the promotion mix is highlighted in the above case? 
4. State any four objectives of the element of the promotion mix identified in (iii) above.

Answer 1

1. Direct channel (Zero level)
2. The term "direct channel of distribution" refers to making items available to consumers directly from the manufacturer without the involvement of an intermediary. This is the most basic and straightforward method of dissemination. Manufacturers using direct channels typically market consumable or exclusive goods to a geographically specific target audience. Many service providers, such as holiday firms, promote directly to customers, bypassing the traditional retail intermediary, the travel agent. This channel includes selling via mail, internet, and door-to-door. Examples include bakeries, jewellers, McDonald's, Bata, and so on.
3. Sales Promotion
   1. Objectives of Sales Promotion are: Introduction of new products: Sales promotion activities help to introduce new products to the market. They encourage customers to purchase a new product. Dealers may receive free samples or a monetary incentive to stock and sell the new product.
   2. Attracting new customers: Sales promotion seeks to attract new clients. Consumer sales promotions include coupons, product samples, demonstrations, contests, refunds, and free trials. These encourage shoppers to make quick purchases on the spot.
   3. Inducing present customers to buy: Sales promotions encourage existing customers to purchase more of the product. Sales promotion methods are faster than advertising. Sales promotion items increase productivity for salespeople. It allows the consumer to learn more about the product's ingredients and usage.
   4. Increasing sales during the off-season: Certain products are seasonal in nature. They are no longer in demand once the season has ended. Sales promotions are intended to keep customers interested in the goods during the off-season. Short-term incentives provided to buyers promote sales.