Sales promotion
is another good promotional strategy used by most retail companies to attract
potential customers, and keep the existing ones. According to my marketing
text, it's a marketing communication that serves as an "incentive
to encourage consumers to purchase good and services immediately, either by
lowering the price or by adding value". Duane Reade uses some
promotional tools such as Coupons, Loyalty Marketing Programs, Sampling and
Point of Purchase Promotions as a way of encouraging, keeping and attracting
both existing and potential consumers. Since every objective of sales promotion
is to attract consumers to buy something, Duane Reade for example use 'coupon'
on a weekly basis for price reduction for some of their products. It also use
the 'Loyalty Marketing Programs' i.e. by introducing the old 'flexRewards'
card, now 'Balance Reward' card to give in-store discount, award points,
and bonus points for big saving. At Duane Reade, the 'New Look' offers various
cosmetics items, colognes and other body products. There are several
in-store samples of these items displayed for consumers to test; although, this sometimes comes at great expense for the company, because some
people only come to use them and go. And Lastly, Duane Reade uses Point
of Purchase Promotions such as shelf "talkers", shelf
extenders at the end of every aisle to display promotional items on a weekly
and monthly basis. It also use checkout counters displays i.e. placing some
promotional items behind the checkout counters for consumers to see; In-store
audio message is another promotional strategy used by Duane Reade. Its 24 hrs
in-store audio message conveys promotional messages to buyers/consumers about
items that are currently on sales, those that are expected to be on sales, and
any event related to sales offerings. All these strategies been implemented, has given Duane Reade a strong competitive advantage over its competitors.
