Companies must carefully judge how they implement promotional strategies as new research identifies that just offering the lowest price is not enough, as consumers are increasingly seeking the best quality products and services.
Consumers are demanding greater value from every product and service that they purchase. This is nothing new. Recent research from Shoppercentric has highlighted that shoppers’ desire for value is not only focused on who is offering the lowest price, but it is about getting the right quality for money, and finding a better balance between quality, price and quantity.
While the monetary cost will always be a factor that influences consumption habits, consumers are starting to become weary of heavily promoted and discounted items. According to Shoppercentric’s study, 28% of UK shoppers said that good value means ‘getting the most for the money I planned to spend’, whilst 21% of respondents said that ‘getting the right quality for the money I planned to spend’ is most important. As consumers become more conscious about their spending, the comprehensive value and increasing benefit from what they are buying is what drives trial and repeat purchase.
Savvy consumers are looking for brands to trust. With information easily available, they demand more individualised and transparent communication from brands. This new value-conscious consumer behaviour is also reflected on how they view marketing tactics and experience the brand. The overall customer service and shopping experience is as important as the product or service they are purchasing.
The search for superior quality
Here at Hotcow we are constantly in touch with what is driving consumers to purchase. Due to the competitive pressures between brands and retailers, consumers have become far more price and value conscious than ever. They will always have high expectations from brands, and rely on word of mouth and online reviews to fill the gap in their trust and buying consideration.
According to a recent trade promotions survey by Ebiquity and The Grocer, businesses are struggling to resolve the conflict between volume and profit growth. As the research reported, an off-shelf promotion that may have given a 500% uplift five years ago is likely to give less than 300% now. With promotions not returning what they used to, brands are wising up to the fact that getting their ‘brand in hand’ is critical to business growth.
Experiential marketing has a greater role to play in any marketing strategies, specially for the reasons highlighted above, as it can strengthen the relationship between brands and consumers, create greater cut through to deliver higher overall uplift rates with sales and brand consideration. Brands that put experiences at the heart of their business, with creative elements that will make the campaign stick in consumers minds, will be the long term winners.
When planned and executed correctly, experiential marketing is a fantastic tool that can be integrated into your sales promotion strategy, enabling you to offer unique added value, which will reward consumers at the most appropriate point in their decision making journey.
Hotcow have the experience to seamlessly integrate the most appropriate experiential tactics, from live experiences to product sampling, making your promotion stand out from the crowd and speak for itself.
Hotcow is a multi-award winning Experiential Marketing agency. We get brands in front of consumers in ways that persuade them to buy. We fully implement our ideas; nothing needs to be farmed out. For more information or free consultation, contact us.