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How can FMCG brands differentiate themselves from the competition without lowering prices?

Catching consumers’ attention in supermarkets is an ongoing challenge for FMCG brands. While promoting on price, with offers such as ‘buy one get one free’ or ‘25% off’, can boost sales, it rarely engenders brand loyalty, and can ultimately devalue the brand.  Yet the IRI UK Topline FMCG Trends report in August 2014 revealed that more products are sold on promotion in the UK than anywhere else in Europe, with retailers and manufacturers’ use of promotions standing at 55%. This means that more than half of the UK’s shopping is bought on promotion.

More bang for your buck

But what can brands do if they want to attract consumers yet maintain their margins and avoid price-led offers?  Added value on-pack promotions can achieve this goal, offering a way for a brand to differentiate itself from the competition.  Few consumers will remember a slight price discount on their tea bags, but they will remember a family day out, or a useful or fun product. Promotions such as ‘buy this for your chance to win’, ‘buy this and kids get a free pass to…’ enable a brand to engage with its customers and potential customers on a level that is not price-related. Such promotions can also be run for a fraction of the cost of giving product away or discounting, making much better use of a tight marketing budget.

In 2014, Dairylea ran an on-pack promotion which saw consumers able to win a Moo-sical fridge cow by entering a special promo code on the Dairylea website or its Facebook page.  An instant win mechanic and a greater chance of winning – there were 100 winners every day for 12 weeks – aimed to encourage multiple entries, helping retailers to drive sales across the range.  The promotion attracted 130,000 entries, prompting the company to run a follow up on-pack campaign which began in May 2015 and will run for 23 weeks – the longest on-pack promotion Dairylea has ever run. The latest campaign features Moo-ing Racer Cows which move to their own personalised sound…

‘Near pack’ promotions

When space for the promotion is at a premium, many brands opt to use vouchers, either as part of the brand packaging or as a Fix-a-Form® leaflet-label.  However, due to cost, timing and space, not every brand can run an on-pack promotion.  Instead, many will opt to communicate the message near pack on point-of-sale material, directing the consumer to an online or text entry mechanic.  Proof of purchase is desirable, and this can be achieved by asking consumers to upload a copy of their receipt.  For competitions, entrants can be asked to retain their till receipt; if they win, the brand gets that link to purchase. It’s win win.

(with thanks to  Promorati on April 23, 2015 Best Practice)

By |2019-08-16T08:37:12+02:00Apr 4th, 2016|