EFFECTIVENESS OF PREMIUM PROMOTION FOR DRINKS FROM DRINK DISPENSER AT 7-ELEVEN

Abstract

Different promotional tools are being used by both manufacturers and retailers in order to attract buyers to select their brands, and promotions that they use are mainly divided into two types, which are price and non-price promotions. Price promotions usually generate instant outcome of high sales. However, the objective of this paper will focus on premium promotion, one of the effective non-price promotions. Premiums are the things that sellers give away for free or at a low price when a buyer purchases their products. It is quite interesting of how many people are trapped by those charming premiums. Some of them buy a product because of a premium that comes along with the product, not the product itself. Therefore, interviews, focus group, and observations were conducts to test the effectiveness of premium promotion, and special tumblers from 7-Eleven were selected. The finding turned out that not every premium is successful. Well-known brand usually attract buyers more than unknown brand one. Consequently, giving away things for free or at cheap price does not guarantee the success of promotion, but it depends on value of the premium in consumers’ mind also. KEY WORDS: Premium Promotion/ Premiums/ 7-Eleven/ Sales and Promotion