Does Your Offer Make Sense?

I saw the advertisement of a relatively unknown brand of honey on television a few weeks ago. It prominently declared a buy one get one free offer. I was intrigued. Honey is expensive, and yet, here was a brand with this amazing offer. I went to the local supermarket and made the purchase. The packaging wasn’t great, but I decided to let the honey do the talking. It was good, not great. But for the deal they were offering, it was fantastic. So I made another trip and bought a few more jars.

The offer is still on, but how long can they sustain it? And when they withdraw it, I know for a fact I shall return to the brand I usually purchase. Why? The packaging is better, the taste is better, and it costs only a few rupees more. I’m willing to go with the new brand as it has a great offer. So what that means is that I’m willing to try it. It is now this brand’s duty to ensure it can retain my interest. That’s where it failed. The lesson here is that offers such as these can only induce trial.

When devising offers, it behooves every company to first determine the objective. In the case of new brands, it would be to induce trial. But customers won’t shift unless they are delighted. They will simply avail the offer until it lasts and then get back to their trusted brands. However, when it comes to well known brands, extending offers can serve to increase sales from existing as well as new customers. It also makes sense to extend offers only to existing customers to build loyalty.

It is also important to consider how offers may impact a brand’s image. For instance, a buy one get one free offer may send the message that the ingredients are substandard, especially if the brand is a new one. An offer may also send a signal that the brand is not doing well, especially if it is an existing brand. While there are no hard and fast rules, these factors should be taken into consideration. All in all, offers can be a great way to increase visibility, induce trial and get sales if used properly.

Featured Image Source: http://ift.tt/1bf2wsE

via Business 2 Community http://ift.tt/1bf2wsG