Monday, May 19, 2008
You can smell it in the air. The economy is in a recession (or as the politicians say, a temporary growth reduction) and one by one, clients are dumping their brand advertising and going for the great big Price Point. Yep, it’s time for 10% Off, Zero Down, EZ Financing and BOGOF. If the economy continues to tank, even luxury items will head down the retail path.
As short-term solution, it’s probably a good idea. No one would argue that reducing the price on high-quality goods will move some units.
The problem is, branding doesn’t stop just because you switch your style of advertising. Endless sales events, discounts and deals days send out the message that your product is CHEAP.
Keep that “temporary solution” going on long enough, and one day you’ll be staring at a big fat focus-group report that says the pubic lists your product just below the 99 Cent Store Brand.
So what’s the lesson here? First off, all advertising is brand advertising, regardless of your intentions. And second, short-term solutions should remain SHORT-TERM. Coupons are great every now and then, but don’t turn your brand into crap just for a few quarters of increased sales.