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Question
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Innovation and brand consultant, Anisha Motwani, believes that free trials or sampling as a strategy is mostly prevalent and successful in categories that have deep seated habits and have high frequency of consumption. Brand switching in this category require attitude and behavior changes and free sampling influences customers to try new brands and thus increasing the probability of purchase. Such categories could include newspapers, food products, etc. Free trials can also be found in case of expensive offerings where consumers prefer sampling before making a final commitment.... Success of Reliance Jio in the intensely competitive Indian telecom market brings forth the strength of trial marketing strategy, even in the service industry. Reliance Jio Infocomm Ltd offered free sampling of Jio's voice calling, text messaging, and data services, and acquired stupendous 100 million subscribers, of which it continued to retain 72 million even after the free trial period ended. Conventional wisdom suggests that brand that indulge in trials and discounts erode brand Value. Here’s the reality though. People value brands. But people also seek value for money.... |
With reference to the case study answer the following question:
Identify and explain suitable element of marketing mix that has been discussed here.
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Solution
Element of Marketing Mix: Promotion Mix
Specific Tool: Sales Promotion
Explanation with Reference to the Case Study:
- Pivotal Role of Sampling: As stated by consultant Anisha Motwani, a free sample is extremely effective in categories with strong habits and high usage frequency (such as newspapers and food products). It has a direct impact on customer attitudes and behaviour, encouraging people to try new brands and boosting the probability of a purchase.
- Service Industry Application (Reliance Jio): The case study highlights how efficient sales advertising is, especially in the service industry. Reliance Jio Infocomm Ltd. used a free sample for voice calling, text messaging, and data services, attracting a staggering 100 million customers and maintaining 72 million when the trial period ended.
- Value for Money: While conventional wisdom holds that continual reductions devalue brands, the case study demonstrates that buyers seek value for money. Customers can experience premium brand quality firsthand through sales promotional trials without incurring any initial financial risk.
