Welcome to TLC UK

TLC just launched a new campaign to promote added value TLC wants to rally all marketers to stop brand cruelty - add value everywhere Say no to discounts with TLC Marketing - add value everywhere

Why are we still focusing on price?

Posted by claire.charruau | 16 June

In the discount-saturated world we live and work in, TLC Marketing is launching a tongue-in-cheek campaign to highlight an alternative to price promoting.

The campaign for Added Value Everywhere begins in June 2014 and will run throughout the rest of the year – www.addvalueeverywhere.com

This faux anti brand-cruelty charity campaign aims to raise awareness as to 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.

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

Figures reveal that retailers and suppliers continue to be obsessed with price at the expense of more effective promotional tools.

According to research from the Institute of Promotional Marketing (IPM), UK marketers spent almost £55 billion on promotional marketing during 2013, the majority of which (£40.4bn) went on price promotions.

In parallel, retailers have further escalated the price war, of which Morrison’s new campaign “I’m cheaper” and Tesco’s “Pound zones” are just the latest developments.

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.

All this exposes a losing strategy for retailers as Kantar figures show declining sales for the big four grocers. And, as another example, an ICM poll for Retail Week found that 45% of consumers believe prices have actually risen over the past year at Tesco (April 2014) despite their communications on price-cutting.

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

TLC Marketing will communicate the campaign for Added Value Everywhere in Marketing Week and The Grocer through digital and print advertising and promote it on social media channels via the hashtags #stopbrandcruelty and #addvalueeverywhere.

In addition, the TLC Marketing stand at Marketing Week Live (June 25th and 26th) will stage the headquarters of the faux ‘Add Value Everywhere’ charity.