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Hrm 531 Week 9 Final Paper

Decent Essays

The purpose of trade sales promotions are to increase industry visibility and to provide discounts and deals (Marshall, Solomon, & Stuart, 2012). Frito-Lay should use co-op advertising, promotional products, and point-of-purchase displays to increase their sales. Co-op advertising is a promotion method that is commonly used among companies (Ghadimi, Szidarovszky, Farahani, & Khiabani, 2013). Co-op advertising should be implemented by Frito-Lay because each of the retailers understand their area market conditions better and can endorse their salty snacks more effectively (He, Krishnamoorthy, Prasad, & Sethi, 2012). Frito-Lay may use one of three methods to pay for part of the costs. These three methods include paying a fraction of the total advertising cost which is known as the participation rate, offering a fixed dollar amount per each unit sold and paying all or a part of the cost of advertising up to a certain percent of the purchases made by the retailers (Ghadimi, Szidarovszky, Farahani, & Khiabani, 2013). …show more content…

If Frito-Lay properly utilizes their promotional products, they will create several accomplishments (West, 1999). First, it will grab the consumers and retailers attention. Second, since everyone enjoys gifts, the promotional product will encourage goodwill. Third, the promotional product provides a friendly reminder of Frito-Lay’s salty snacks. Finally, it can motivate an action from the retailer and the consumer to purchase a variety of Frito-Lay’s salty snacks to enjoy anytime (West,

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