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Why are we still focusing on price?

Posted by suzanne.rolfe | 03 October

In a market environment almost completely saturated by price cutting, TLC Marketing Worldwide launches ‘Add Value Everywhere’, a campaign against the ‘ill-treatment’ of brands. The rationale of the campaign is illustrated through these key messages;

•#STOPBRANDCRUELTY

•Say ‘NO’ to discounts

•Price Cutting Kills Brands

•Say ‘YES’ to adding value

•Brand abuse is a crime

The campaign is promoted both on and offline and follows a ‘protest’ style theme; channel KONY2012 and you get the gist. The faux anti brand-cruelty charity campaign aims to raise awareness of the dangers of repeated price-cutting, product bundling and BOGOFs.  It aims to put a stop to the big price squeeze and help brands recover their sense of self worth and rediscover their personalities. 

‘Add Value Everywhere’ brings to the table a strong campaign communicated effectively over social media platforms and an interactive website (check it out at www.addvalueeverywhere.com) encouraging among other things, that visitors sign the petition to stop brand cruelty. 

The offbeat tone of voice - which cannot be missed here - is meant in jest but highlights a very real and aggressive truth… 

Discounting and price cutting may seem like a good ‘now’ solution (or easy way out), but inevitably it results in an irreversible loss of brand image, prestige and ultimately, value. Hence the tag #PriceCuttingKillsBrands. Price wars are self-destructing and TLC Marketing Worldwide understands the consequences. 

Years of research has proved that heavy price discounts may indeed drive short term sales, but tends to have little long-term effect on sales volume. It may also increase revenue but with the risk of a negative impact on margins and no persistent positive effect on either sales or margin. 

It would also be foolish to underestimate the long term harm discounting can do to your brand. From this point of view, price-cutting is very likely to damage consumer perception.

Price is obviously an important asset; it makes sense for manufacturers and retailers to use it, but price promotions are tactical, not strategic, and should be planned that way.

TLC specialises in ‘value-added’ reward promotions - offering consumers and brands a tangible, brand building alternative to cutting prices.

The agency has always believed that adding value is a better strategy than discounting; continuously proving that a budget of a few dollars per product can be turned into an entire campaign that will give brands positive content and build emotional connections with their consumers.

TLC Marketing delivers successful promotional campaigns that add value, not take it away.  FMCG is a market that knows price cutting or #brandcruelty all too well. As an example within the FMCG market,  TLC Marketing Australia helped Arnott’s to  increase sales of their multi-share biscuit packs with an ‘everyone wins’ campaign that spoke to the nature of the audience, focusing on their active lifestyle. Customers who purchased selected Tiny Teddy and Shapes multi share campaign packets were given the opportunity to redeem a FREE sports lesson at over 1,000 venues across AU and NZ. 

TLC Marketing adds value to brands while creating memorable experiences for their consumers. If you would like to help in the campaign to #stopbrandcruelty or would like to know more about how TLC Marketing Australia can help, contact us on 02 8904 7200 or email hello@tlcmarketing.com