Tagged 'promotions'

RIP BOGOF, hello BOGOFL

tesco-bogofValue deals and incentives proliferated during the downturn as consumers with shrinking budgets increasingly focused on finding deals. This includes “Buy one, get one free,” or BOGOF, offers. But encouraging consumers to get more than they need creates a huge amount of food waste, something the Department for Environment, Food and Rural Affairs in the U.K. is trying to fight. The Times Online reported last year on a government finding that British “households throw away 4.1 million tons of food each year that could have been eaten if it had been managed better.” The cost to the average household is £420 a year.

Tesco has addressed the issue by introducing “Buy one, get one free later” for perishable goods that may spoil before being consumed. This is an ingenious solution that still helps consumers who are cost-conscious and boosts Tesco’s sustainability credentials. Finally, it ties the consumer into repeat shopping in order to redeem offers, increasing brand dependency and footfall.

Photo Credit: http://www.tesco.com/

Extreme couponing lightens up

Extreme couponing was a common theme of last year’s recession news, with stories of cash-strapped consumers clipping their way to deep discounts. Now, the “find great deals” site Groupon is putting a tongue-in-cheek twist on that survivalist spirit with its Live Off Groupon promotion: One person will be chosen to “attempt to survive for one year with nothing but a laptop, cell phone and an unlimited supply of Groupons.” At stake is $100,000. groupon

CNET calls it “one of the most ridiculous social-media promotions that any brand has attempted to pull off.” Admittedly, the contest isn’t a real option for the average family squeezed by the economy. But judging by the response on Groupon’s site, it has struck a chord with some very excited people, what seems to be a young, mobile crowd who have more time than money on their hands (funemployment, anyone?). Groupon’s offer, with its promise of a cross-country adventure and a big dose of humor, is appealing to them—and a clever way to get this demographic onto the site.

Photo Credit: http://www.liveoffgroupon.com/

In the Philippines, banks target shoppers still searching for stability

In a recession year, what a surprise it was last month to see a modest Filipino family hauling a big box containing their new widescreen TV. Before they rushed off to do more shopping, in answer to my query they said the purchase was “thanks to the credit cards—their offers are better this month!” bdo-credit-card

Off I went to the appliance store to investigate. What I found is that banks were offering extended payment like never before. Credit cards from Citibank and BDO (Banco de Oro) touted “Buy now, pay in 2010” and “Pay much later” schemes. Surely a big help to the Filipino family with a primary breadwinner still working abroad and perhaps a little late coming home for Christmas. Or families still feeling unstable because a member lost a well-paying job in 2009.
And banks know that in December, along with splurging on food for their family, the typical Filipino family loves TV Christmas specials and soap operas, now amplified for some in wide-screen splendor.

Photo Credit: www.bancodeoro.com

Gap takes assurance plan to the mall with Sprize

sprize1Assurances and guarantees were a dominant theme in marketing during this difficult year, helping to assuage consumer anxiety about spending. It kicked off with Hyundai’s widely copied Assurance Program. By late summer, GM was offering a “60-day satisfaction guarantee” (“If you don’t absolutely love your new vehicle, we’ll take it back”). In the online-travel category, Orbitz now offers both a “Price Assurance” program (if another customer books the same flight/hotel for less, Orbitz refunds you the difference) and a Low Price Guarantee (find a lower online fare for the same booking and Orbitz refunds the difference and gives you a $50 coupon). Competitor sites are doing likewise.

Now Gap is experimenting with putting this idea in the mall. Its Sprize program, so far only operating in the Vancouver area, has shoppers register for a Sprize card, which they show whenever they buy a Gap item; if the item’s price drops within 45 days, the difference is credited to the card. That credit is redeemable for up to a year.

This seems like a smart response to what’s become a sticky problem for retailers, which have been forced to slash prices this year, in effect training today’s value-conscious shoppers to wait for sales and offers (coupons, etc.). Since Gap’s refund is in the form of a credit, a good percentage of shoppers will likely spend extra once they’re back in the store or forget to redeem it at all. It will be interesting to see whether Sprize provides enough incentive to get bargain hunters to buy now and hope for discounts later.

Photo Credit: www.mysprize.com

Most Saudi Arabia brands have missed opportunity to connect during recession

Looking back on the recession and marketing in Saudi Arabia this year, we’ve seen brands shift from mass generic communication to more targeted advertising. Some brands have been trying to create more value. And for the first time in a while, we’ve seen brands going the extra mile to communicate discounts or value products, which used to be shunned by the cash-laden Saudi.

wafra2Two recent examples of this are Wafrah, a brand that has been focusing solely on marketing affordable products (its name translates as “save”), and Petromine, a motor oil brand offering 50 liters of gasoline free with an oil change.

But not enough brands here have directly addressed consumer anxieties, and most remain unconvinced that they need to focus on championing value. In the end, they just keep talking about how premium their product is while ignoring what people are feeling and an opportunity to really connect with their consumers.

petromineexpress1

In Australia, MasterCard focuses on the meaning of the moment

Could there be a growing realization that life is more than a series of transactions—even from a credit card brand? The latest Australian MasterCard campaign reflects an attitude fostered by the recent economic downturn: a turn away from compulsive consumption and a focus on appreciating the value of “the moment,” and specifically the time that goes into making that moment special. (Just last week, we highlighted an L.L.Bean holiday commercial that also emphasizes the value of the moment.)

The 30-second spot shows how a rock is formed over eons, from its origins in a volcano to being skipped over water by a dad and his son. Says the voiceover: “Not knowing how much goes into a moment? Priceless.” This is an interesting shift of the “Priceless” campaign, which has focused on the transactions that go into reaching a “priceless” moment. (The commercial promotes MasterCard Moments, “an exclusive program of awe-inspiring experiences specially chosen for Gold and Platinum MasterCard holders.”)

AnxietyIndex research has shown Australians to be particularly pessimistic about the future relative to the actual impact of the global recession on their lives. Coming out of this unsettled and uncertain period, the importance of time, family and the special moments that arise from these serves as a strong leverage point for brands looking for to engage audiences in a deeper and more meaningful conversation.

Free samples: A reason to party in Spain

party21In a downturn, sampling can transform from a call to buy into a generous gift from brands. A few weeks ago, so-called DanceBag parties were organized in several clubs around Spain; they were publicized through Facebook. More than 50,000 revelers left discos with free samples from brands including Axe, Trident, Bic and Smint.

HighCo Marketing House, the company responsible for the initiative, is also proposing a SkiBag (for handing out on the slopes), a GoldenBag (for luxury hotel rooms) and a SummerBag (for beachgoers). Let’s take two positive conclusions: Brands can collaborate to improve their efforts, and sampling is the best experience marketing you can propose to a society beset by the downturn.

Photo Credit: Viernest

L.L.Bean taps into a quieter consumer mood for the holidays

For many Americans, this recession has meant putting the brakes on freewheeling consumerism while at the same time learning to enjoy the simpler pleasures that come with more time spent at home among family and friends.

L.L.Bean does a nice job tying these two trends together in a holiday commercial that shows a family frolicking in slow motion in a snowy wonderland. Backed by what sounds like hand bells being quietly struck, the voiceover tells viewers: “Every penny counts. So does every moment. Make the most of both this holiday season with free shipping from L.L.Bean.” (Accompanying copy on YouTube and Facebook also advises shoppers to “Slow down and enjoy the season.”) To further back up the first part of the proclamation, the Maine-based retailer is offering a $10 gift card with a purchase of $25 or more.

Saudi Telecom helps alleviate phone bill anxieties

saudi-telecomIn Saudi Arabia, people freak out about their phone bills. Some consumers must choose between going out and paying their phone bill, which is possibly the most complained about financial obligation in the country.

So Saudi Telecom came up with a promotion to help alleviate some of this anxiety: It is offering a month of free calls for post-paid subscribers and anyone who switches to Saudi Telecom. Timed around the religious holiday of Eid, the offer was a holiday gift of sorts for the brand’s customers.

Photo Credit: www.stc.com

NYC tries to stimulate local spending with ‘Extreme’ campaign

picture-14New York City’s new “NYC Extreme Local” campaign—designed to get locals spending more at neighborhood businesses during the holiday season—reflects several trends JWT has written about in the past few years.

Co-sponsored by American Express and AT&T, the print, outdoor and online campaign touts “24 days of shopping, dining, deals, events and more” in 15 Manhattan and Brooklyn neighborhoods (the emphasis on neighborhoods presumably explains the “extreme” aspect of local). A microsite also outlines a promotion: Make a total of $300 in purchases at three or more participating businesses with an American Express card and get a $50 card credit.

NYC & Company, which is behind this campaign, is one of several tourism organizations that have responded to the ongoing “staycation” trend by focusing on locals. Such efforts tie in well with the current affinity for all things local, especially at a time when many neighborhood businesses are hanging on by a thread; efforts like the 3/50 Project have sprung up to encourage people to patronize such businesses. (Most participants in the “Extreme Local” effort are independents, but IKEA in Brooklyn and a few other chain stores are also involved.)

One of JWT’s 10 trends for 2010 is Location-Based Everything, which covers the growth of location-based or -aware tools that use data from a user’s mobile phone—an area of huge potential for brands that can help consumers based on their location. We’ll see more brands building up their credentials as guides and advisers. American Express operates a travel-themed site that breaks down deals for cardholders by city. And as noted in a New York Times story on the “Extreme Local” campaign, AT&T wants to promote offerings including its Yellow Pages mobile applications.

AT&T told the NYT that it’s hoping to find similar sponsorship opportunities in other major markets. Watch for more promotions that tie these themes together.