The importance and demand for sales promotions in the current economic climate

As consumers continue to grapple with the current rising cost of living, particularly when it comes to groceries, brands need to be more strategic than ever in their marketing initiatives. With the cost of basic necessities like food increasing, consumers are seeking ways to save money wherever possible. This is where value add marketing initiatives play a vital role in your marketing plans. Brands that can provide a positive brand experience without introducing price promotions can win over consumers and build loyalty in the long run.

One effective way for brands to implement value add marketing initiatives is through sales promotions with a short-term tactic designed to boost sales and increase consumer engagement. However, it’s important for brands to be strategic with their sales promotions and ensure that the promotion aligns with their overall marketing strategy and brand messaging. They should also make sure the promotion is relevant to the target audience and their brand. Some things to consider would be.

  1. The prize/s on offer: is it engaging and desirable to your target audience?
  2. Quantity of prizes: is there a high perceived chance of winning?
  3. Entry mechanic: is it simple and easy to enter?

 

Prize pool considerations are very important to consider during this economic uncertainty, consumers are seeking both basic necessities and also luxuries that they no longer can afford or feel comfortable dipping into their savings for. Big prize pools values are not essential to achieving effective results, it’s all about the planning and understanding your consumers, the retailers and the current environment.

By creating a highly engaging and simple promotion, brands can provide a positive brand experience and build long-term loyalty among their consumers. While implementing value-add marketing initiatives can be challenging for brands, especially in the current economic climate, with the right strategy and approach, brands can differentiate themselves from competitors, create positive associations with their brand, and build long-term loyalty. Large marketing spends are not required to implement an effective and successful campaign; you just need the right support and guidance.

As a marketing agency with expertise in this field for over 20 years working with many marketing teams across a diverse range of brands, we would recommend that brands work with experienced marketing professionals to develop the most effective campaign for their brand and their budgets.

TMS, aka The Marketing Syndicate, is a full-service Sydney marketing agency and your go-to partner for integrated marketing solutions including sales promotions.

With our focus on combining strategy and creativity, we deliver campaigns that drive real business results for our clients. We offer a full range of marketing services, from shopper marketing, promotions, social media, trade activations through to digital marketing, to name a few, all tailored to meet your unique needs and goals.

We are also proud to announce our recent win of a Bronze Award at the recent Shop! ANZ Awards 2022, for our Four’N Twenty Consumer Promotion Campaign with our client partner Patties Foods in the highly competitive Sales Promotion category. This award represents not only our team’s skills and expertise, it represents the passion and enjoyment we have for the work we do.

What are you waiting for? Let’s get started and make your marketing plans a reality!

Sources: IMI PromoTrack Research