Offer or Creative – Which Has the Stronger Pull?
What works better in a down economy, a crackin' offer and incentive, or innovative creative that builds the brand positioning? We offered a taste of Ron Jacobs and Paul Kuzma's thoughts in the June/July issue of Chief Marketer. For their full arguments, read on…
Previous Page: Nothing triggers branding behavior like an offer
Don't Discount, Do Add Fresh Ideas and Creativity
By Paul Kuzma
I read a lot of creative briefs. Some read like action movie scripts. Some like comedies. Most bore me to tears.
Lately, many are focused on "savings," especially promotional briefs. Clients are retreating from adding value and developing brand ideas at retail to delivering more dollars off and larger discounts.
I can see why this is tempting. I can also see why consumers love it. But please, for the sake of your brand, don't fall for it. Don't discount the future value of your brand.
Brands today need to focus on the real value they provide by flexing their creative muscle and delivering messages with greater force. Get creative and find new ways to tell consumers why your brand is worth it in any market.
Hyundai and JetBlue have set the bar with their assurance programs providing consumer security in the case of job loss. JetBlue goes one step further and combines its offer with a powerful optimism campaign promoting core brand values and encouraging "private jet consumers" to trade down to JetBlue.
The GM Total Confidence Plan and the Ford Advantage Plans with Ford Payment Protection followed suit. But what do their "assurance" programs say about their products? If Ford or GM wants to win the quality fight for the "longest-lasting vehicles on the road" they should support it with the "longest-lasting guarantees" on the road. When you place your brand quality message side by side with your sales discount, you create real brand value, not just temporary offers.
To support this, a 2009 Yankelovich poll found 70% of respondents said price cuts probably mean a brand was overpriced in the first place. And 62% said they assumed a discounted product was most likely old and the marketer was just trying to get rid of it.
What we're telling our clients in today's market is that even if forced into a discounting scenario, the key to success is not in spotlighting on the 20% savings. Rather, focus on the 80% incredible value you're giving consumers, and the quality, consistency and history the brand represents.
If a client insists on slashing prices, remind them to consider the impact discounting will have on the future of their brand. The power sports industry is currently down 40% plus this year. Our client Kawasaki USA is offering deep discounts on their entire lineup. When we looked to structure a comprehensive sales event for them, we also developed a text and win component that requires consumers to visit dealerships. This gives dealers the foot traffic they need and provides Kawasaki new leads, a re-contact strategy and a bridge to the future for brand sales.
The long-term strategy is quite simple: "You'll love my brand for a lot more than just the price."
More You Can Do
Great brands always reverse the current thinking. Brainstorm all the things you can do to create value, besides discounting. It won't take long. And it might be the best investment you can make. Remember these key points:
* Consumers don't live with your brand as much as you do. Remind them why your brand is a core part of their life, and about everything they get when they buy your product, beyond a good price.
* Most every marketer has an audience right now that is looking to trade down—you might be surprised how many consumers already think your brand is a great value. Target has been stealing department store customers for years, and many pizza lovers are finding that DiGiorno's frozen pies deliver a way to satisfy their cravings.
* Retailers are hurting too. There might be a high-end destination that used to refuse to carry your brand that is very interested now.
* Don't ask your agency how they "usually" market in a recession. Every brand is different. Every situation deserves its own solution. Creativity is the force that let's you find a custom solution so you don't resort to the "usual."
* Humor can show your brands' human side to consumers. Be genuine, self-reflective. A little smile will go a long way in a tough market.
* Don't just create value or messages. Work harder to create truly new benefits, which is easier said than done.
* Stay optimistic. People have counted on your brand for years. Remember the simple vow "in good times and bad." If you stick with them, they'll stick with you.
* Guarantees are not dead. They're being reinvented right in front of our eyes. Go over your company's guarantee with a fine-toothed comb. Does it stand for more than just the product? It's not just money that people want back. It's their time, their energy and their investment.
Your brand is defined by its actions, in good economies and in bad. If the best thing you can think to do is to subtract one dollar or one thousand dollars off your price, consider adding some fresh ideas and creativity instead.
Paul Kuzma (P.Kuzma@Tris3ct.com)is chief creative officer at Trisect, Chicago.
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