Add value to trade away from deals
The BOGOF, the WIGIG and the ‘2-for’ aren’t going anywhere, but getting trapped in a cycle of deals can do serious damage to your brand if you don’t find new strategies to break the cycle.
Deals are in the lexicon and, more often than not, they’re how shoppers instinctively navigate a store. But they’re the language of retailers, not brands. They reduce the opportunity for your products to be anything other than practical solutions to functional problems, and it’s a fair bet, that week-in, week-out, they’ll hit your bottom line more than you feel comfortable with.
Is it deal, or no deal?
The uncomfortable truth is that brands rarely get the credit they deserve for the investment they make in price promotion. Shoppers tend to believe that it is retailers, not brands who they have to thank for the cheaper products in their baskets each week. So while retail cleans up, it’s a ‘no-deal’ for your brand equity and long-term shopper behaviour change.
Let’s give people a reason to buy.
Our busy lives may mean that we’re naturally System 1 thinkers in-store – automatic, fast and habitual – but while we shop we’re also thinking about occasions and unmet needs – where emotionally engaging added value cuts it in a way that price simply cannot. The opportunities here are endless –in the drinks category for example, we’ve delivered festival tickets to raise awareness, recipe cards to inspire consideration and glassware to drive consumption – and they all involve investing less than you would on a standard piece of price promotion.
We recently worked with Maynards creating an on-pack promotion to attract shoppers by giving them the opportunity to win bonkers days out and even a trip to see wacky sheep racing in New Zealand. Appealing to shoppers through connecting with something they enjoy, motivating them to purchase without a price incentive.
The bottom line is, it’s all about the bottom line
As Byron Sharp has noted, the risk of deal-based activity is that it is a scattergun approach to marketing, which risks rewarding shoppers who would buy your brand anyway. It also sets up a battle of the brands that will only ever be won by those with the deepest pockets. But when the story is based on deeper insights and better, more engaging brand experiences - you will create more powerful connections with shoppers without damaging your brand.
Need help trading away from deals? Get in touch now.