OCT
2008
An Old Buzzword Is Back: Bargains
New York Times, October 24, 2008 — As the year began, consumers started to see a trickle of advertisements that played up brand value rather than attributes like status or prestige. As the economy worsened in the spring and summer, the trickle became a torrent.
Now, as the crisis in finance continues, a veritable tidal wave of ads devoted to saving money is washing over the country.
Marketing textbooks suggest, however, that a focus in the short term on pinching pennies could in the long run have a deleterious effect on the images of brands or products by cheapening them.
Category: Brand Strategy
From Judy Hopelain on October 25, 2008
"Value" has become tablestakes. Some brands staked out “Value” as their promise and point of differentiation from the get-go. Once upon a time, Wal-Mart’s Every Day Low Pricing guarantee was a dramatic break from the pricing strategy of most of its competitors who marked goods up only to mark them down. Food 4 Less, The 99 Cent Store, and Ross Dress For Less were all launched as “Value” brands.
High-end brands are playing catch up, and talking “Value.” Whole Foods is offering deeper discounts, adding lower-priced store brands and emphasizing value in its advertising. It's even inviting customers to budget-focused store tours and seminars.
Simply shouting "Value" is not enough to be heard above the noise. The challenge - and the opportunity - for brands in this environment is to cover their "Value" bases in ways that are genuine, relevant and differentiated. Products that last longer or that require less per usage occasion deliver savings, store layouts can save time, and good customer service can save effort. Now more than ever, marketers need to convey clearly HOW their brands deliver value.