Summer’s here and the living is…easier
Not strictly true – summer is still a way off. Though we can’t wait until the weather warms and the days get brighter. What we’re not waiting for is to speak with clients about how the cost of living crisis can be eased in the summer – a critical time of year for families.
Not a day passes without news of impending cost-of-living rises. Inflation is already inflating to levels not seen for a long time, so when income doesn’t rise in line there’s one casualty – disposable household income. As inflationary pressures increase what is normal is for interest rates to increase to put a bit of a lid on spending. This time it’s not consumer driven but supply-side – energy, food, raw materials are all subject to rising costs as we enter the post-pandemic world.
If wallets, purses and savings are being squeezed to maintain current lifestyles, future knocks to disposable income will likely have a greater impact. The Ofgem energy cap review is widely anticipated to deliver a knockout blow to many households. What does this mean for brands? Consumers across all demographics will be looking to stretch how far a pound goes. They will not just want more value. They will expect it and vote with their feet – brand loyalty is set to be severely tested.
How to make a pound go much further….
With consumers demanding greater value, brand pricing will be under extreme pressure – in all markets we expect. When energy costs rise the share of disposable income for other purchases goes down. The market size shrinks, and brands will need to minimise the impact on their revenue – they will need a larger share of a smaller market to just stand still. How can you do this in a way that makes sound economic sense?
Here’s our solution. The ‘Lock-in Marketing effect’ really comes into its own at times of economic crunch. An on-brand sales promotion that’s imaginative, relevant, and grabs consumer eyeballs and actions is an incredibly low marginal cost marketing tool. It protects margins and raises brand visibility. In short, it’s an essential magic ingredient for boosting a brand when things could easily go a long way south, quickly.
Dispel summertime blues
Summer, particularly school holidays, can be a tricky time to navigate for families. Savvy brands are exploring how to entertain and keep the kids occupied at reduced cost to mums and dads. The super savvy are already under way – designing promotional marketing campaigns to deliver hundreds and thousands of pounds of value for low marginal cost. Retaining customers by providing fabulous offers on theme parks, restaurants, zoos, cinema - all the activities kids love to do but cost a small fortune – is a way of delivering the extra value consumers are demanding. Done creatively and with high-brand synergy, a Lock-in Marketing promotion can really make marketing budgets stretch a lot further to help customers under pressure and the pounds go a lot, lot further.
Act now to make summertime living easier. Let the ‘Lock-in Marketing effect’ deliver rays of sunshine to your customers, their household budgets (and the kids will be delighted).