ABSTRACT

The case-study is about the Advertisement &

Sales Promotion of Randalls Department Store
and contains data analysis.

SUBMITTED BY
ADVERTISING Darshil Dholakia - 15021141016

& Rupesh Jha - 15021141050

Siddharth Desai - 15021141060
SALES PROMOTION
Salesforce & Channel Distribution SUBMITTED TO
Dr. B. R. Londhe
Assignment
Professor & Deputy Director
INTRODUCTION
Randalls was a downtown department store in Bilingsville had 12 branches. It was founded
by Elliote O. Randall who opened the downtown Bilingsville stores in 1890. Descendants of
the founder continued to play major role in the management of the company. All were
situated in an upper Midwest state in a trading area of approximately 3.7 million inhabitants
that encompassed Bilingsville, a major city and its surrounding area.
Emily Randall and Caroline Randall were president and Chairman of the board respectively.
The reporting structure within Randalls was similar to that in many traditional department
stores. The three General Merchandise Mangers (GMM) & The Vice President for sales
promotion and for the stores reported to Emily Randall.

ADVERTISEMENT
Print Media
Including Inserts in Local Sunday Newspaper advertising and catalogues. It
was mainly used for Sales advertisements, because price reduction on the
numerous items could be communicated efficiently. Both Sunday Inserts
(upto 60 pages of color presentation showing sale & regular price as well as
Value Price Merchandise) and ROP (Run of Press) were used for Sales
Advertising. ROP ads were black & white advertisements within the body of
newspaper itself.
The Womens division also used ROP advertising, often with quarter and full
page illustrations or photographs of single garment. Such ads typically
appeared on Mondays & Tuesdays and emphasized in Season, full priced
fashion merchandise

Television & Radio

Major storewide sale events were advertised on Television, Radio as well as in
newspapers.
Substantial portion of advertisement used to be done on television on
Thursday & Friday for weekend days.
Advertising budget
Randalls advertising budget included both funds for general advertising and
GMM locations.
General advertising expenditures included outlays for major Store-wise sale
events.
Funds allocated to GMM (General Merchandise Manager) were distributed
to their Divisional Merchandise Manager. This funds were used for the
focused events like The Home Stores White Sale and to pay for any
additional Sunday Inserts done at the discretions of GMMs.
 Focused Supplemental Advertisement
During Store wide sale period (for fashion ROP advertising, and for any
catalogue advertising).

SALES PROMOTION
Extra Value Days sales events
Pre-season sale (on coats & shoes for women)
Direct Mail Advertisement ( 3 % off coupons )
Anniversary sales and Coupon discount
Every Day low Pricing (Womens Fine Jwellery, mens suits, children clothing)
Cohesive Price Strategy.
Focused events like the Home Stores White Sale.
Store wide and divisional sale events.
4 Day Extra Value sale event in a month.
1 Day Extra Value sale Special Red Extra Value day signs to highlight extra value
merchandise.
Some specific store wide sale specific to certain geographic location- Billingsville
Saturday sale, Bargain weekend sales in suburban stores.
Incentive based compensation, commissioned sales staff.
Promotional Calendar

CONCERN OVER ADVERTISEMENTS & SALES PROMOTION

Sales advertisement more on print media than on television.
Reduced circulation of print media and tendency of younger consumer not to be
heavy reader.
Excess use of ROP and Sunday inserts resulted in visual clutter.
Too much dependence on weekend sale events (more than 25% sales used to happen
in 4 day Extra Value sale in a month.
To achieve above newspaper as well as television advertisement used to be done on
every Thursday and Friday. So more sale on crowded weekend as compared to free
weekdays.
ANALYSIS RANDALLS HISTORICAL ADVERTISING
EXPENDITURE

CAGR- Spring ( 1983-1989) = 15.49 %

CAGR - Fall( 1983-1989) = 22.47%
CAGR - Total( 1983-1989 ) = 15.49 %
There is a decrease in advertisement expense from 1988 to 1989 though the total sales
had increased.

Total Advertisement Expense on Radio and Television

D.H Humphrey < Randalls < Prescotts

 ANALYSIS ON ADVERTISING EXPENSE ON SELECTED BRANDS

Total Advertising Budget(Gross Advertising Budget ) = Net Advertising Dollar +

Co-operative Advertising Dollar
Co-operative advertising dollar often higher than the DMM advertising Fund.

Category Ad. Expense ($) DMM Fund $ (Internal) Cooperative Fund $( Vendors)

Children 434435 301920

Fine Jewellery & Fashion Accs. 678810 852465

Dcor. Home Furnishing 901170 1302625

Mens clothing 525045 551140

Womens Clothing 636055 487645

CONCLUSION
Advertisement is an important aspect for a business like Retail Store which keep
offering various schemes on day-to-day basis. Randalls were too much dependent on
this schemes like ELDP, Extra Value Day, etc. which is not viable solution for
sustainability.

A Business offering such schemes on daily basis does not survive for long period of
time and also adversely affects the brand name.