Question

Koffee, a brand of instant coffee, gives away a free coffee mug with its logo imprinted on it with every purchase of a 500g packet of its instant coffee powder. Which promotion tool is Koffee using?

Answer 1

Answer:

It is a sales promotion.

Explanation:

Sales promotion tool is used because of following factors:

a) It improve the sales for short term as it gives another reason to buy the product.

b) It is targeted toward brand switcher.

c) It encourage occasional buyer to make more purchases.

d) Increase new customer and brand loyalty.

e) Provide benefits to existing customer.

Koffee is also using sales promotion tool to get benefit in sales and Brand development.