Last week I stopped by at Atrium Senen, Jakarta. This mall was named literally from its location, it is located in the atrium of Senen. It is very strategic and so stand out that you can’t miss Atrium Senen if you are driving from Cempaka Putih or from Salemba to Senen. Although a bit old, the mall still manages to attract considerable number of traffic. It took me 30 minutes just to park my car.
Anyway, what I want to tell you through this article is the marketing program of D’Crepes, which I discovered when I was waiting for my hotdog crepes. The program was conducted from June to July 2006. It is essentially a 21 Cinema tickets sweepstakes. For every purchase of crepes, you have a unique number which is printed in the transaction receipt. To participate, then you need to sms to a certain number. The sms contains your name and the transaction number. Each week, there are 40 tickets available for random winners across Jakarta.
I found this program quite interesting and amusing. I did not participate for sure, because I know that statistically, the chance to win one ticket is very very small, so why bother. But the program is a creative initiative from D’Crepes management. In fact, it is interesting who initiated the program, is it D’Crepes, or is it 21 Cinema? And the program doesn’t mention in what 21 Cinemas the tickets are valid to use. I forgot to ask the waiter at that time also since I already had gotten my hotdog crepes. Hmm makes me want to eat it again! Haha.
So back to business, here we learn that this is one form of joint-promo activities. If, let’s say, this D’Crepes outlet in Atrium Senen, can make 400 crepes per week, or 1600 crepes per month, then it means 3,200 crepes in the 2-months duration of 21 cinema tickets sweepstakes. Let’s say that in Greater Jakarta area, there are 20 outlets of D’Crepes, that means D’Crepes can sell 64,000 crepes per month, with average price Rp 7000, that translates to 448 millions rupiah. If it says that there are 40 tickets for gifts each month, and if each tickets worth on average Rp 35,000 then the cost of the gifts during total program duration is 11,2 millions rupiah. That is only negligible 2,5% of total monthly revenue.
I have a hunch that this program works well. Possibly, increase in sales around 10% – 15% is achievable, since Indonesians (or human in general) like to throw their luck and hope that they can get free cinema tickets. 10% increase means that D’Crepes can sell 44 millions more, that is a significant number. If let’s say, from total 64,000 crepes per month, each people on average, buy two, so there are 32,000 buyers, and if there are only 10% of these people, which means 3,200 people sms their unique numbers, this program also generates sms revenue of 6,4 millions rupiah per month!
Then I think, this program can lasts long if the scenario of 10% increase in sales works. To make Rp 44 millions increase in sales, D’Crepes only has to invest Rp 5,6 milions each month. That is 12,72% cost ratio, an acceptable one. A genius and creative program crafted by D’Crepes marketing team and management. And buyers are happy to sms their unique numbers, too. Value is created along each step of the chain. For the customers, they have chance for free cinema. For D’Crepes, increased sales and more loyal (at least temporarily) customers. For 21 Cinemas, increase in exposure to public, particularly since they are under fire from pirated DVDs. And not least, for the cellphones operators, they can share the 6,4 millions rupiah sms revenue, though small, still that is a cash flowing in.
Learning from this fact : marketing program need not to be glamorous, amazingly creative, or brilliant. Simple program such as sweepstakes still work well and will always do in the future. Though cannot be relied as a main program, and should not be, sweepstakes still can increase sales significantly and instantly. If the objective is to increase sales in short term only, then sweepstakes is the way to go. However, sweepstakes cannot secure long term loyalty, unless perhaps it is done continually, like Tahapan BCA or Gelegar Mandiri, something like that.