Proposed Promotion/Advertising Plan Overall Promotion Objectives and Strategy Objectives Promotion objectives are to maintain the existing level of promotional activity and create a budget for Ruehs to use in the next year to capitalize on promotional activities that are currently not used. Sherry currently wants to use 5% of sales, but actually uses the "what we think we can afford"Ã¯Â¿Â½ method. They spent $2,200 on promotion last year, but we find it hard to believe that that is even close to 5% of their sales. Their projected sales are $800,000 for next year, making 5% of that $40,000. Unfortunately, they will not disclose any actual financial data to our group because they feel uncomfortable with giving it to anybody outside the store.
Strategy Our plan on implementing this is to research the surrounding area on what promotional tools are available in the area. Then, once we find the most suitable vehicles to service their customers, we will research the cost each vehicle.
First of all, we will figure the actual appropriation that Ruehs will utilize in the years to come. Secondly, we will subtract the current promotional activity costs from the appropriation to see how much will be available for new mediums. Next, through our research we will discover new mediums that are going to be available for Ruehs to use. Some of the alternatives available are the Grand Rapids Press, The Pioneer, and additional flyers in periodicals that they are currently not using.
Promotion Plan Objectives Our promotion plan will accomplish two things. First of all, by implementing our plan, the store will see more traffic and reach a greater number of potential consumers in the area. Secondly, our plan will increase the sales volume that Ruehs will see next year due to the increase in traffic.