Introduction
Sales promotion and marketing form the basis of a company’s success. Promotion is a significant element of marketing mix. However, the major components of promotion are direct marketing, sales promotion, public relations, personal selling and advertising. While developing an appropriate promotion strategy, a company should put into consideration the main purpose of marketing message. Monsanto Company, an entity that deals with agricultural products has been applying various promotion strategies which have really helped the company through its business since its formation. The company has different brands in the agricultural field. In order to succeed in selling its brands to both the target and potential consumers, the company employs appealing promotion strategies for its brands which have subsequently helped the company to win a greater market share both locally and internationally (Grosse, 2000).
Messages for Products Promotion
The roundup (glyphosate) has been one of the company most selling brands since its launch in 1976. The success of this brand has been rooted to the vigorous promotion strategies applied by the company. After its launch, the product received positive publicity triggered by the good advertising policy which the company initially applied. It is worth noting that within a few years after its launch, the product was being promoted in one hundred and fifteen countries around the globe. This led to massive increase in sales volume thereby increasing the profitability and productivity of the company. The success of this brand among other company’s products such as the genetically modified (GM) crops was trigged by the type of message the company used in order to promote its brands. Though the company employed vigorous sales promotions, the most important aspect of these promotions was the message contained in their promotion policies.
Notably, the company showed much concern for the poor in the society and that the reason why it came up with the pro-poor GM products. In most instances, the company sought to engage in all forms of promotional strategies with careful and significant message to the target market. Of most important is the advertising message the company used. Mostly, the messages were appealing, informative, reflective educative as well as persuasive to the potential and target market. Such messages have helped the company in retaining and expanding its market share. The consumers are persuaded and educated on Monsanto’s products through its promotional messages (Clover, 2008).The company through its advertising messages emphasizes on the need for the consumer to fully understand the usage, benefits as well as risks associated with some of its products. This shows how the company is concerned about the safety and well being of its customers. Its promotional messages are not only directed to making the consumers buy their products but also directed into ensuring that the consumers are well protected and informed while using the company’s products especially the chemicals ( Clover, 2008).
Platforms and Themes
Notably, the Monsanto Company uses both the consumer and competitors’ platform in promoting its brands. It argues that there is no other company that can be in a position to produce quality products the way it has done in many years. It assures the consumers that its products are the best in the entire globe and they should therefore embrace them. In promoting its brands especially the GM crops, the company’s highlights the importance of these products to the general public and especially to the developing countries. They argue that the products are affordable, sustainable as well as essay to manage and control (Clover, 2008).The GM products can be used in countries and areas with poor soils but with skilful farming and government policies that are supportive. The technology of the GM products as the company put it is very relevant to developing countries because these crops are disease resistant and they also boost production of foods. As a part of public relations, the company highlights the significance of biotechnology and modern farming expertise especially to the developing nations.
In addition, the company remains as the globe’s best selling brand of herbicide. It uses this theme to market its other products on the ground that they are as best and useful as its number one brand, (glyphosate). The dependency of the Monsanto’s roundup may seem uncomfortable but it has acted as a good tool for promoting other products produced by the company. Glysphosate has been a single brand which has helped the company in raising its sales volume even in other products that are associated with the company. The product has shaped the image of the company both locally and internationally ( Clover, 2008).Despite the fact that the company’s products were at one time, especially between the years 1960s and 1970s, taken as a threat to the environment, the company modified its products and made them to become environment friendly products. The company also uses this subject to promote its new products in the market.
Consumers and Trade promotion Tools
The Monsanto Company has in the recent past embraced some promotional tools which have subsequently helped the company in promoting its products. Some of these tools include free samples which have been as a sales stimulant especially to its new products in the market. The company has employed this tool especially after the introduction of the GM Seeds. However, the company applied this tool in order to stimulate the trial of the GM crops in developing countries. The free samples are usually distributed directly to the consumers or through the company’s elaborate supply chain. Another tool that the company employs is the use of premiums which extensively helps in stimulating the buying of products on promotion. This tool helps the company in making quick sales which subsequently helps in increasing the company’s volume of sales. Mostly, the Monsanto Company attaches these premiums on their products and more especially the company’s new products in the market. Monsanto Company uses coupons as a promotion tool. Nonetheless, this tool is not extensively applied by the company although it helps in stimulating sales. The coupons are handed out to the customers by the company’s sales agents while others are distributed through magazines and newspapers.
Periodicity of Sales Promotion Programs
Normally the Monsanto’s promotion programs runs until the target and the potential consumers are fully aware of the new and existing products. The promotion ends when the consumers have adopted the products and have realized the benefits of these products. After this time duration the company is now comfortable that the product’s sales volume will continue to rise. It is worth noting that the consumers who are legible for the mentioned promotion tools especially for existing products should purchase a considerable amount of products to qualify for the promotion tool. Such tools like premiums depend mostly on the type of product and the quantity of purchase. For instance, if you purchase one kilogram powder of Roundup, you will get a quarter kilogram of a different new product that is on sale. For free samples, the company utilizes this tool for the new products in the market and in most occurrences the quantity of the product purchase matters less since the company is concerned on creating awareness of the new product to the potential and target market ( Clover, 2007).
Positioning Strategies
The Monsanto Company follows branding as its major positioning strategy. The company positions its products through two platforms which are on consumer basis and positioning on competitors basis. By positioning its products on consumer basis, the company directs its campaigns and promotion towards the consumer while competitors’ platform requires the company to direct its campaigns as well as messages towards the competitors. Additionally, the Monsanto Company also uses price and quality in positioning their brands. Monsanto Company also uses product application in order to position its brands. Notably, the Monsanto Company puts into consideration the understanding of how the target market describes value of the product as well as makes choices among dealers. Branding has really helped the Monsanto Company in maintaining its market share. This is because the target market as well as the potential market truly understands and recognizes the company’s stand as far as competition with other firms offering similar product is concerned ( Elliot, Percy, 2007).
Channels of Sales Promotion
For the sales promotion applied by Monsanto Company to be successful, there has to be a medium through which these promotions are channeled in order to reach the target audience. As earlier indicated, the company employs IMC programs whose components are advertising, public relations and direct marketing. Through advertising, the company is in a position to make massive sales due to publicity. Public relations on the other hand help the company in maintaining good and lasting relations with its customers. This helps in enhancing the productivity and profitability of the company since good public relations helps in maintaining customers as well as winning other new customers (O’Brien, 2001).
However, direct marketing is also a crucial component of IMC since it helps in reaching a substantive customer base. Monsanto’s sales promotion are advertised through, business magazines, newspapers radio and most importantly the television channels which helps in delivering a substantial degree of realism through application of sound, pictures as well as a clear sight of the company products. The products relevance is well illustrated through television which the company has largely used since its formation (Kotler, 2001).
Conclusion
In order for any business to be successful, there are key issues that the company should look into. These factors include promotion strategies, product positioning as well as the channels through which the products promotion strategies reach the target market. All these factors have proved to be essential part of business growth. Monsanto company profitability has been through proper promotional strategies and positioning strategies which include branding. The company has maintained its image since 1960s through proper branding which has consequently helped it maintain its market share locally and internationally.
References
Clover, D. (2007).Farmers participation in private sector agricultural extension (1). London: ESRC STEPS Centre, IDS, Sussex
Clover, D. (2008). Made by Monsanto: The corporate shaping of GM crops as a technology for the poor. Journal of Economic and Social Research Council. London: University of Sussex
Elliot, R., Percy, L. (2007). Strategic brand management. London: Oxford University Press.p171
Grosse, R. (2000). Thunderbird on global business strategy. New York: John Wiley and Sons. P9
Kotler, P. (2001). Marketing management. Canada: Pearson Education Canada
O’Brien, D. (2001).Integrating Corporate Social Responsibility with competitive strategy. Georgia. Georgia State University
