| The contest to gain the consumer's attention and | | | | The eighty-nine cent taco is one thing, but |
| money is on and promotions, which include | | | | promotional risk coverage is a way to incorporate |
| promotional risk coverage, are winning the game. | | | | winning high end, life changing items into your |
| Smart, strategic moves that provide little risk for | | | | marketing while maintaining a fixed budget. Without |
| companies are paying off in big ways that build brand | | | | knowing it, consumers have seen examples of |
| loyalty. Did you happen to watch the first game of | | | | promotional risk coverage on primetime television. |
| the World Series? If you did, one of the most | | | | When Pepsi decided to undertake The Pepsi Billion in |
| memorable parts was probably when Jason Bartlett, | | | | 2003, where the grand prize was $1,000,000,000, |
| Tampa Bay Rays Shortstop, stole second base in the | | | | they turned to a promotional risk management |
| bottom of the fifth inning. Why would that be | | | | company. The promotional company provides financial |
| memorable? Taco Bell was running the "Steal a Base, | | | | protection called "prize coverage services," that |
| Steal a Taco" promotion for the second year. Taco | | | | allows marketers to offer huge prizes while minimizing |
| Bell's president was there to announce that everyone | | | | risk and maintaining a budget. |
| in the U.S. would receive a free taco on October | | | | In return for securing promotional risk coverage, |
| 28th from 2-6pm. | | | | Pepsi allowed the promotional risk company and its |
| From a marketing and brand loyalty standpoint, this is | | | | affiliated promotional risk investment firms to take |
| a win-win situation. The tacos retail for eighty-nine | | | | the billion dollar risk. The odds of winning were low, |
| cents. They probably cost one third of that amount. | | | | but the media coverage and advertising value of the |
| Who can eat a taco without a drink? By the time | | | | promotion created excitement, brand loyalty and |
| that most consumers purchase at least a soft drink, | | | | ultimately profits. |
| the restaurant has broken even. | | | | From eighty nine cents to one billion dollars- though |
| Everybody likes to get something free- both | | | | the numbers are drastically different, the desire is the |
| consumers and companies. The consumer gets a | | | | same. Through marketing promotions, including |
| taco. The company gets brand loyalty, free media | | | | promotional risk companies want to capture their |
| advertising, possible exposure to new customers and | | | | audience, build brand loyalty, reduce risk and maintain |
| low promotional risk. That is a beautiful return on | | | | a high return on investment. |
| investment. | | | | |