The Indian sales promotion industry is on a roll.
Once started as an occasional phenomena to drive sales in recessionary market, it has now become an essential part for most of the major companies marketing strategy, and for round the year.
Almost all bigwigs, Hindustan Lever, Cadbury, Britannia, Godrej are now majorly into sales promotion and some 'schemes', as popularly called in street parlance, is always on.
On offer for consumer as freebies range from camera to plastic moulded top, from multi functional knife to badminton racket.
"The consumer has now become so conscious of freebies that he scouts for add-ons while shopping for low priced items like chocolate. There are very few brands which still command loyal customer base. For others, freebies rule the roost," marketing experts said.
Sales promotion is not limited to expensive items only. Gone are days when companies would look at products Rs 500 and above for promotion. FMCG cos now are going whole hog to drive volume in low priced articles like chocolate and energy drinks.
"The important criteria is whether the perceived value of a freebie is more than its actual price. In this context, companies typically look at multiples of three to four while going for a particular item," industry sources said.
"While demand for more expensive items like camera is still there, companies are now looking at items as low as Rs 10 and below," Pritimoy Chakraborty, director, Zenith Finesse said.
Zenith is one of the biggest player in the sales promotion industry which imports Chinese gift items in India.
Chinese products, preferred by Indian industry, have an edge over Indian counterpart on two counts - price and novelty.
To give an example, Cadbury is offering an item like plastic moulded top aimed at children as add ons with one of its chocolate brands.
It is said to have distributed over three million badminton rackets imported from China with energy drink Bournvita. Hindustan Lever is also said to have distributed four million toys with leading toothpaste brand Pepsodent.
While many Indian players are now trying to cash in on the boom, very few produce goods suitable for such sales promotions. Indian gift makers have stuck to items for retail sale.
On the contrary, volume from China has grown in leaps and bound. Zenith alone imported 60 containers of items last year and it could go up 80 this fiscal.
Indian companies like Chinese items as products are cheap, innovative and have a perceived value much higher than actual price.
