Tag Archive - discounts

Thresher virus lives to fight again

Hugh MacLeod over at gapingvoid, the architect of the online success of the Stormhoek wine brand, has set the question:

“In short, I think there are enough people out there wiling to have another go at redeeming the coupon one more time, even if this time the story isn’t as newsworthy to break into the mainstream media machine like it did last time.

Thoughts?”


See the full article here

I have left a comment (to be moderated) with my view. Don’t do it!

* I think that the fact that it happened at Christmas, when everyone was pre-disposed to look for a bargain, was the main reason it took off.

* I think that many potential customers for Threshers felt cheated when they understood that the regular discount is 33% and so 40% was not nearly as big a deal as they had expected.

* I think that focusing on price alone is a depressingly familiar, and dead-end, campaign concept.

Having said all this, I should point out that I spoke up in favour of the marketing success of the campaign back in December – it was clever and it was well executed. Doing it again, would tarnish that.

Hugh, Gapingvoid and Stormhoek are all well respected. Surely there is more they could do with this respect they have generated? How about a campaign to support your high street specialist wine shop? What about a plan that educated consumers about South Africa, offering better deals for buying three from that country? What about involving the consumer by getting their feedback on the wines?

There is so much that we do not do to get consumers interested in quality wine, and we do not need to feed that craving for more discounts any further.

So, Mr MacLeod, thoughts?

The Four P’s

Product, Place, Price, Promotion

They hammer that one home in Marketing 101. To market effectively you must manage all four (plus a few others they added later on) and create the right combination to match your customers’ needs.

So why is wine SO stuck on Price alone?

I know, I know. Many will say that it is all about the product, but in fact the real message about product is so often lost before it gets to the consumer, that it is ineffective. Those in the wine business will tell you stories about the apparently confident consumer asking for Red Chardonnay or what country your Rioja comes from, etc. To those with knowledge, these seems ridiculous. In practice they are often the real example of the level of Product knowledge.

So what about Place (the distribution channel). Well, 80% or so of wine is bought in supermarkets, just like all other products, and this is only going up. There are no strong competitive channels at this point. Independent merchants and online retailers are there, and getting better, but where is the concerted campaign to get consumers to switch?

Finally Promotion. “If only we had [product x]‘s budget” is the usual refrain, and I have used it regularly myself. But in truth we lack ideas for this rather than the money.

Look at Magners. They are probably London’s biggest marketers for ice. Cider didn’t sell, so they switched their four P’s around, rethought their product, invested heavily (and I mean heavily) in distribution (place) and promotion. Did anyone ask the price? I doubt it. It took guts, but it paid off.

So when Threshers (40% off), Sainsburys (25% off) and Tesco (a belated match of the 25% off deal), et al start talking about discounts AGAIN, I find it somewhat depressing. It only feeds the obsession and depletes whatever coffers there might have existed with producers, agencies and retailers for investing in talking about anything else.

Page 2 of 2«12