The Secret Marketer over at Marketing Week has been talking
this week about Pricing Strategy. He
believes post-recession consumers are savvier than ever, and we would tend to
agree. When recession doom and gloom is on every TV show, blog article and
newspaper, it seeps into your brain and you subconsciously pay more attention
to prices.
Specifically, consumers now recognise that the packaging of
a product takes up a lot of the cost, so they will expect to pay more for a
smaller package. They will also expect to pay more for something with higher
quality ingredients than an “economy” version. Consumers are even adjusting to
plastic bag charges all over the country now, knowing that it encourages better
habits for the environment.
Where we run into issues however, is when consumers or
clients are charged more for no logical reason. The Secret Marketer used the
example of customers getting penalised for taking a later train than their
advance ticket was booked for. The trains will all run regardless, they got
their money upfront, so why should the customer have to pay more for taking one
train over another?
And it raises a very good point.
If customers today are demanding explanations for every
fluctuation in price, then pricing structures need to be made more flexible and
open. We can’t just carry on as we are, when the mindset of the customer has
altered dramatically.
With this in mind, let’s look at the latest burger released by KFC…
How have KFC approached these wiser customers?
KFC released their new pulled chicken burger this week,
alongside a multi-channel marketing campaign covering TV, print, outdoor, PR
and digital markets. But have they adjusted their approach to overcome these
recession-aware consumers?
1. The new burger is £1 more expensive than their usual offerings.
So instead of going the budget route, KFC are pulling no punches. They're aiming this burger at older age groups who are looking for high quality ingredients and will expect a higher price, so they've priced it for this target audience. Cleverly, their marketing strategy focuses on how uniquely superior this burger is, which leads customers to subconsciously think it's worth more.
2. Their ad campaign focuses on emotion.
Instead of the usual fast food spiel of how tasty and
low-cost the burger is, KFC have likened it to the slow build up of first love.
Their television advert focuses on a boy slowly courting a girl, supposedly
similar to the ‘slow-cook’ method used for the pulled chicken. This leads customers to associate the burger with happiness, love and generally positive feelings. Immediately this makes the burger more than your standard fast food burger; it's slowly cooked and meant to be enjoyed.
3. They don’t mention price.
It may cost more, and people may worry more about money, but
KFC have set price aside in order to focus on the glorious qualities of
their new burger. Essentially they’re trying to build up so much anticipation
for this burger than you just have to have it. Hopefully you'll even forget
to check the price. This is an effective technique that many big brands employ; distracting you with the good stuff so you don't have time to think about practicalities!
4. They’re promoting this ad for longer than usual (12 weeks), across multiple channels.
This increases their chances of getting the pulled chicken
burger into the minds of their customers. This burger is fantastic, and they’re
making sure everyone knows it; you don’t have to worry about prices or anything
else. Their message is clear; you have to have this burger.
Translate This to Your Business
What we can take away from KFC here (pun alert), is that
consumers may be savvier but that doesn’t mean your prices have to hit the
floor.
KFC may have a massive marketing budget and over 18,000
outlets worldwide, but you can still learn from their approach. There are three basic things you should keep in mind;
1. Focus on the Benefits of Your Product/Business
Keep your content positive and benefit-orientated, in order
to build a happy image for your customers. This goes for all content including
text and images on your website, posters for your business, things you post on
social media, etc.
Show your customers how their lives will be better after
they have your product.
KFC have done this by focussing on the ‘slow-cooked’ aspect
of the burger. It takes longer to make than other burgers, but it is worth the
wait because it tastes so good. The benefit to the customer in this scenario is
that they can buy this gourmet meal from their local KFC.
2. Try to Reach as Many People as Possible
Get the message out there about your new product! Talk about
it on your website, your blog, Facebook, Twitter, and anything else you can think of.
3. Remember You Don’t Have to Drastically Lower Your Prices
KFC released a more expensive burger than their usual meals,
but they don’t seem too panicked. Instead, they have focussed their marketing campaign on convincing you this
burger is worth it, so when it comes to your own business, you simply have to do
the same.
Have you changed your pricing structure since the recession?
What tips would you give to businesses out there still struggling?
Flexible Business Strategies
With Vital Hike
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