07/01/2019 | promotional marketing,marketing logistics,added value,handling,fulfilment

Price cutting isn't the only marketing tool in the box

As a company that has spent over a quarter of a century around marketing campaigns, our staff often find themselves wandering down the supermarket aisles looking to see which brands are running on-pack promotions. The reality is, that they are few and far between nowadays and the market’s shift to everyday low pricing has some bearing on that.

Thanks to the growing influence of discount retailers Aldi and Lidl, everyday low pricing is prevalent over short term price cutting. With less SKUs being displayed on shelf, competition is getting tougher and shelf space is fast becoming over occupied or an auctioneer’s dream.

And that’s before we look at the potential merger between Sainsbury’s and Asda which could further intensify the everyday low price strategy.

It was only last month that Mike Coupe, Chief Executive of Sainsbury’s commented ‘We believe that by bringing the two organisations together there is a unique opportunity to lower costs and ultimately those costs will be passed back to customers in the form of lower prices’.

Lower prices being the key phrase there. It won’t be the supermarket chains that take the hit on those prices - the brand owners will have to, which in turn means less budget to spend on other marketing activity.

 But that’s no big deal – right? I mean, the fact that you’re on the shelf and you’re sporting a low price will get you into the trolley and out the door and that’s all that matters isn’t it. Sales, Sales, Sales!

But what about the effect on your net margins? Or your long-term sales, affinity or loyalty? What about when your competitor is sporting a spot on-shelf with a lower price point? Can you be so certain that you’re still on track for that trolley slot?

Outside the box

Standing out on shelf has never been so crucial. Consumers are fast becoming price driven and it’s proving an ever increasing task to keep them loyal.

It’s time to think outside of the box, and that could mean on ‘the box’. Forget TV adverts, Radio jingles or experiential - your most targeted marketing tool at point of sale is your packaging. Look at the power of personalised packaging in Coca Cola’s share a Coke campaign. Hugely effective in driving emotional connection with the brand.

Instead of risking devaluing your product by offering discounted prices, instead why not add to your armoury by engaging your audience with an added value promotion.

  • Host an experiential event in or out of store that can drive footfall
  • Entice new consumers with a ‘nothing to lose’ try me free / taste guarantee
  • Reward / loyalty schemes are ideal to encourage repeat purchases
  • Use cashback campaigns to offer money off without discounting at point of purchase
  • Countless PR opportunities can come from partnering with a charity and donating a percentage of your price pack to a good cause
  • Or why not try looking for an opening to become a sponsor or partner with a key sales driven event such as the World Cup.

Whichever way you look at it, spending your budgets wisely on that on-pack mechanic to run in line with any price activity will make for a win-win situation. Fast track to Trolley here we come!

If you want some advice on the best promotional mechanic for your brand and budget– then we'd love to chat. Give Caroline or Vikki a call on 01858 414 777 to get started.

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