September 27, 2016

Stand Out - At Any Cost

Companies that use attention-gathering promotions at the PoS (Point of Sale) increase their likelihood to sell significantly. There are about 70 Percent of potential ­ purchasers present at the PoS who are undecided. This shows you how important it is to treat the customer right. But which promotional measures are really effective?

When it comes to fighting for customers, price changes such as special offers are amongst the most desirable and most effective instruments. At least in the context of making a quick win or to win new customers. Most customers nevertheless see special prices as a decisive reason to buy.

However, does a lower price really mean a longer term customer fidelity?

Special offers are certainly attractive for customers - but they may also trigger a price erosion. Not seldom, a whole product group will sink in price level. This causes the image and the brand value to suffer in many cases. This is especially true for Premium brands which have taken a long time to build up and which are now offered significantly below normal price. “In the long term, competing companies do not do themselves a favor if they keep making special offers”, says Christian Machers, Managing Director of Gastro-Cool. His company focuses on the efficient marketing of drinks. “One result of this can be that the customer will always go for the lowest price level. This makes it difficult, especially in the case of new customers, to bind them durably even after the end of the promotion.”

Furthermore, polls among consumers show that two thirds of potential buyers value a positive buying experience (Customer experience) higher than to always have a reduced price. What, then, does my customer expect? What does he or she view as a positive buying experience? What are his or her expectations in terms of offer and performance? In order to be able to answer these questions, beverage producers need to know their customers and the needs of those customers extremely well. Knowledge about such wishes and desires is most easily acquired by using a market research institute at the time of market introduction. Where this is not possible because of cost restriction, what most readily comes to mind is to start polling consumers right in the store. Here, it is important that even at the outset of your market introduction you already have a display in the store where your offer is showcased. So that you and your product actually stand out and attract visitors in the store, Gastro-Cool recommends that you use one of our individually designed promotional coolers at the time of market introduction of your product.