AdStand: When Sale is a strategy

There is a lot happening in the consumer space. More brands are on sale then ever. Homes are on sale, cars are on sale, phones are on sale, even brands are on sale. If you are a consumer, then this is the time to go shopping.

Conventional marketing theories have been about building strong pull for the brand by building on core values. Brands should demand a price premium and consumers should seek them out. Price offs are tactical ways to expand the franchise and bring more people in. Marketing managers in past have spared no effort to study the impact of price drop on overall profitability of the brand.

All this is now history. Now sale is the dominant consumer strategy. And if the brand is not on sale, it might have a deal being offered by some deal app.

With opening of ecommerce brands and the race to acquire customers, the money they spend on sale far exceeds the money they spend on brand building. Today Amazon is on sale, Myntra is on sale, Jabong is on sale (and is up for sale).

Meanwhile a brand in US has just introduced drinkable Marijuana Tonics.

 

Myntra is on sale

 

Its not just a sale, its India’s largest fashion sale. Heck, they even have Hritik Roshan getting ready to shop on Myntra. Asking people to create a wish list is simple, that’s what people do before a sale. Myntra even created a behind the scene video of how they are getting ready for the increased demand. There is nothing unusual about the video, just a brand telling its own story.

The big take out from the campaign is simple, you need a big superstar to build traction for sale, that will last two days.

 

Amazon is on Sale

Amazon’s latest fashion campaign has a bus, has a few youngsters who are on a road trip, while on the trip they showcase fashion styles from global ramps. Interestingly, there is another brand that a year ago was doing the same. A bus, a road trip, a bunch of youngsters celebrating life, but not from Amazon, from Jabong.

They called this the Citizen of Fashion campaign, and did a sale extension of the same campaign. Even before Citizen of Fashion could be established, the brand moved on to sale. Clearly offering fashion cheaper is more important that offering fashion.

Clearly, price is a strategy and not a tactic

 

Jabong is on sale

Jabong created a completely different persona for the brand. They went younger and rebellious. This was Jabong’s way of building credential as high fashion brand. They too are on sale. The big brand sale has number of people jumping all over the screen to create high energy impact.

Jabong too has used the sale strategically. Its not a build on the brand tonality they had. They even dropped the brand signature. For the ecom brand, sale is the strategy

 

Sale is the dominant tactic

For most ecom brands, and not just the three fashion brands, sale has become the dominant strategy. Sale has been topped by cashbacks, deals and more tactics that tell consumers ‘we are cheap’. Brands today spend a huge marketing money to ‘announce’ price deals. This is not the conventional branding logic. There are two issues at play here.

One, the ecom brands are actually retailers who leverage the brands they sell. Are they harming the brands by being on sale?

Two, will the consumer go back to these ‘brands’ if they stopped the discounts?

 

Meanwhile there is a store in US has launched a brand called Legal. Here’s the video

Now this may be really differentiated brand thinking

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s