Discounting Can Deliver Brand Value

Making the 'everyday' exclusive

What can manufacturers and retailers do to manage redundant product?  Particularly in the consumer electronics sector the pace of change is as fast as the evolution in the world of digital and interactive communication…

Many manufacturers liquidate their redundant stock via auction houses such as Grays Online or in discount bins at the store entrance but, frankly neither route does the manufacturers brand or the retailer any favours.

Our strategy for this retail client was to re-configure redundant stoke and offer it as an exclusive value-ad for loyal customers.  And this is how we achieved this unusual rework of ‘perceived value’.

Shopping Has it’s Privileges

Customers were required to register online for exclusive product deals that were not available to non-members.  These product offerings were to be detailed via a campaign microsite and E-Mail campaigns.

Registered guests would receive regular product E-Mailings and invitations to participate in exclusive and private online auctions where the redundant stock would be offered at prices not available at retail.

During the campaign period(s) online auctions would be staged (up to) 12 times each day.  Bargain Hunt members would nominate auction times and product they were interested in so, that they could receive an alert for the relevant auction.  As the auction opens interested consumers would enter their bid – fastest finger wins!

Campaigns were planned for off-peak periods so as to not cannibalise sales in the bricks and mortar stores.  All product going under the ‘virtual hammer’ was store specific so, successful bidders would be required to collect the product from their nominated store.


So, rather than the redundant stock being positioned as being liquidated at a discount, the strategy was to introduce to registered shoppers the exclusive opportunity to purchase product at prices not available to retail customers.  Simple!  Discounting can deliver perceived brand equity.


~ by rtymerej on November 23, 2009.

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