For a few days, I have started observing the brand and product promotion strategies by consumer durable sector. Here are my ramblings on the strategies.
- Titan's discount on surrendering any other watch: I thought about this offer a lot and eventually came to conclusion that this offer serves multiple purposes. First, it is lucrative, get any road side watch and have a discount on Titan. Second, it is mopping out the competitive products present in the market. Effectively increasing the per-capita Titan watches. Thirdly, watches work like self advertisements, the more Titan you see on the wrists, the better it sells.
- Buy one get one free: I had always been intrigued by such offers. I would think why they cannot sell one at half of the price, or just double the container size? After having a tryst with retail management a few things came to my mind. First, changing container size has two problems; a) Retailers will not find a proper place b) If the original size container has some after use usages, the bigger container may not be useful in that purpose. Second, why cannot they just half the price? This strategy at times back fires; this is just a perceptional change but people always associate price with the quality. And people will certainly not buy twice the amout even if they subscribe to your brand. Third, and most important in my view, such offer is selling you twice the stuff you may actually need. This serves two wonderful purposes; a) It clears of the idle inventories. b) It makes sure that competition will have to wait twice the time if the customer want to change his/her mind and switch the product. Inflicting thy neighbour :-)
- Loyalty cards: This is no brainer. It shouts in the air, "our regular customers, yes we do value you". This in turn creats a brand loyalty.
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