Add on to get customers is bazaar mantra

CHANDIGARH: Freebies have become an integral part of the sales pitch of consumer durable companies during the festive season.
This was evident from the offers extended by various companies who participated in the Chandigarh Fair organised by the Confederation of Indian Industry from October 2 to October 5.
In majority of the cases, the freebies that included items such as bags, cameras, assured gifts from scratch cards, gold coins, wrist watches, etc.were being offered apart from the cash discounts on various products.
Company executives say that on account of the marketing policies adopted by the companies in the past, expecting something free with every purchase had become a part of the buyer behaviour, especially during the festive season.
The companies are giving an option of increasing the cash discount with the value equal to that of the gift.
But the consumer psyche of getting something tangible has lead to the norm of providing an addon product.
Says Philips India''s Chandigarh branch head Ramandeep Singh Trehan, "Customers generally ask for it. Even if it is a high-value product, the customer wants something free with it."
Among other items, Philips was offering a camera worth Rs 995 with high-end colour televisions. The company was also providing a bag with all other products.
Executives say that the need for providing a gift apart from the cash discounts was also on account of the providing value addition to the purchase.
"It makes the customer feel important," says a company executive. Companies are also offering freebies to beat the prevailing competition.
"It is not a matter of choice. Everybody is offering gifts and we have to keep up with the competition," says Vishal Malhotra of the IFB.
The company had on offer an assured gift with every purchase through a scratch card during the fair. The gifts included gold coins weighing between 1 gram to 5 gram.
However, there are others who say that the freebies, specially those extended through a lottery, are not of much importance to the customer.
"Based on our market research, customers are generally not well inclined to the free gifts extended through a lottery system," says Anil Barwal of Onida. The customers, however, were more comfortable with gifts extended directly.