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Varying Forms Of Promotions

Sales promotion are an important marketing tool for retailers during this time of the year in order to rake in increased sales. It is a norm for many businesses and
22 Dec 2018 10:00
Varying Forms Of Promotions

Sales promotion are an important marketing tool for retailers during this time of the year in order to rake in increased sales.

It is a norm for many businesses and service providers to indulge in heavy promotional tactics via flyers, brochures, in-store posters etc. in order to entice consumers during such times when one is out scouting gifts for family members or planning a family event.

The Fijian Competition and Consumer Commission (FCCC) has over the years noted innumerable promotions which include freebies, gift vouchers including gifts of high value.

The promotions vary across the industries and are done to incentivize and attract consumers to the trading premises in order to engage in the purchase of products or services.

While the FCCC continually advises consumers to be wary of the different types of promotions in the Fijian market.

It also wishes to inform traders that one must not mislead or deceive consumers into purchasing the products or services being offered for sale.

The FCCC is committed in improving trader compliance in this area through education and, where necessary, prosecuting traders for breaches of the Fijian Competition and Consumer Commission Act 2010 (FCCC Act 2010).

In today’s article, we take a look at the different types of promotions which consumers need to be aware of during this festive season and what to look out for to ensure one is not disadvantaged.

 

  1. Discounted Price Promotion

Traders may use this type of promotion for the goods they offer on sale. Under this type of promotion, the trader may represent that the price of a product has been reduced by ‘xx’ dollars or by a certain percentage.

However, the consumers must be vigilant and ask basic questions. Whether the price has in fact been reduced or the trader is trying to mislead the consumers to believe that the prices have been reduced when in fact it may not have been reduced.

 

  1. Freebies

Freebies are becoming very common in Fiji whereby the trader offers free gifts upon purchase of certain products or purchase made above a certain dollar value.

For example, the trader may advertise” Purchase a camera worth $250 and get 2GB memory card free’’.

The consumers must examine the product carefully before making a decision to purchase.

In some instances, it has been noted that certain products come together, however, traders try to represent the products as different.

For instance, the basic question to ask is, does the 2GB memory card come together with the camera.

If yes, then the trader is misleading the consumers by saying that he/she will get it for free.

 

  1. Gift Vouchers

Under such promotions, the traders provide vouchers to consumers upon purchasing certain products or products above a certain dollar value.

These vouchers mostly have validity period within which the voucher must be redeemed by the consumers.

For instance, “purchase any product worth $100 and get a $10 voucher”.

As a consumer, if you get such vouchers, ensure to take note of the timeline within which you must redeem the voucher.

If you are from a maritime island and the trader does not have any shop on the island, it is advisable that you redeem the voucher soon after your purchase.

 

  1. Buy-one-get-one-free Promotion

This type of promotion is also common in the Fijian market and is used on a larger scale during festive seasons by the traders to get rid of their stocks.

Under such promotion, the trader may offer a second product for free which is of equal or lesser value upon purchase of the first product.

For example, buying one 10kg flour pack and getting a 5kg pack for free.

The FCCC wishes to inform consumers to be prudent when coming across such offers and check if the product offered for sale is an old product which the trader may be trying to clear from the store.

 

  1. Go into the Draw to Win

Over the years the FCCC has seen increased number of traders engaging in this type of promotion to draw the attention of consumers.

Under such promotions, consumers have chances to win prizes worth high dollar value or a number of different prizes of smaller dollar value.

Such promotions usually require consumers to make a purchase and place the receipt into the entry bin and wait for the promotion draw date.

The FCCC wishes to inform consumers to be cautious when taking part in such promotions, particularly when it comes to placing your receipts in the entry bins.

The reason being, if purchasing items of higher value or white goods, then receipts may be needed at a later stage if redress will be required.

 

Advise to the Traders:

Traders who run promotions must ensure that the promotion has a start date, end date and a draw date, along with clear terms and conditions of the promotion. The trader must ensure that upon request of the consumer, such terms and conditions are made available to the consumer.

If any trader is offering free gifts to the consumers, they must keep records of such gifts received by the consumers.

It is essential not to mislead consumers when marketing goods and services to them. Any claims a trader makes about the price must be ‘çlear’, ‘accurate’ and ‘unambiguous’.

 

Advise to consumers:

Consumers need to be more vigilant and seek clarification from the trader where required or if full information has not been disclosed. Consumers need to exercise their rights and have the terms and conditions disclosed to them by the trader before making any decisions.

Further, if any promotion states that the price has been discounted, then check at the counter that the correct amount is being charged to you.

If you identify any trader trying to mislead consumers or is falsely representing, please contact the FCCC.

For more information/details on Fijian Competition and Consumer Commission and FCCC Act 2010, visit our website on http://www.fccc.gov.fj

Feedback: maraia.vula@fijisun.com.fj

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