Dove will see a record Halloween with this promotion! With their entire 500ml range at Morrison's on sale for £2 they are guaranteed to have a strong market share, in return for giving up 38%-46% of the regular sales price and virtually all of the profits. What is wrong? Too deep, too broad and too long. Too deep When Dove was launched in Europe it was a premium brand with a distinct proposition: skin cleaning without the aggressiveness of standard soap. Dropping the price by 40% does not reflect this positioning. Loyal shoppers may even start to wonder what’s wrong with their favourite brand? Most importantly, with a 40% discount it is impossible to remain profitable – yes, we got another H
This roll back promotion is certain to please nobody, except a handful of shoppers who were planning to buy the product anyway. Promotions for household cleaning products are always “tricky”. Consumption is fixed: consumers do not use more cleaners because of a promotion. Therefore, promotions can have three roles only: increase shopper’s average spend, steal share of competitive brands or convince shoppers to shop at your store (or website). What is wrong? Shoppers will not buy more, they will simply spend less. Nobody is interested It’s Halloween! Can we really expect shoppers to be interested in dishwashing liquid, surface cleaners, or, worse … toilet blocks? And very few shoppers will be
-40% across all PepsiCo's 1,5L PET soft drinks brands This promotion for sure will sell “like hell”. Still, we believe it’s a true Halloween Horror promotion that will certainly “kill” all profits in the soft drinks category! What is wrong? The discount is too deep, the offer is too broad and there is no incentive for the loyal shopper to spend more in the category. Discount of 40% This is certain to wipe out all profits. And the discount needs to be funded on the entire volume sold on deal: on the extra bottles sold thanks to the promotion, but also on all base volumes sold to people who would have paid full price. Which leads to … … excessive subsidisation Shoppers get a discount from the
