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Discount an Aspirational Brand @ Xmas??

Updated: Nov 1



Unless offered at time when it's expected (i.e. end of season), discounting can damage the market position of an aspirational brand. To do so during your most important sales period would seem to be madness. But Skagen Denmark broke this rule with a campaign that achieved 19 million impressions, generated considerable goodwill and grew sales and market share.


Control over retail pricing is critical to aspirational brands, and most go to great lengths to discourage and prevent the discounting of their product line. The only exception is with end-of-line or end-of-season sales; something luxury brands do as well. But to offer a discount across your entire product line and to do so during your peak sale period could be considered total madness.


But that's exactly what Skagen Denmark did in a campaign developed by idResults. It achieved 19 million impressions, generated considerable goodwill and increased sales and market share. All without causing any damage to the brand's reputation or market position.


THE CONTEXT

Research indicates approx. 70% of timepieces are purchased as gifts and up to 60% of annual sales occur at Christmas. To achieve sales success, a watch brand must first convince retailers to invest in stock well before Christmas (sell-in) and inspire consumers to add their brand to the Christmas shopping list (sell-thru). Fail to get retailers on-board and you could end up with a warehouse full of stock and nothing in stores. If store sales fail to meet expectations, then retailers will be demanding to return stock and the brand could be discontinued by New Year.


To make matters worse, the Australian watch market is overcrowded with brands and fiercely competitive. Each will be doing everything possible to gain an advantage and having saved their advertising budgets for Christmas, the key players will be fighting for pages in the same magazines. Achieving cut through without overspending is next to impossible.


With these conditions in mind, idResults took the international theme ‘Snowfall in Skagen’ and developed a campaign that generated more than 19 million brand impressions, dramatically increased sales, strengthened retailer support and helped make Skagen Denmark the fastest growing watch brand in the market.



The only material supplied with the brief was a single image (left). This was used to develop the campaign creative (right).


Despite the fact most Australians have never seen a reindeer or snow and Christmas is spent in sweltering heat, the romantic notion of a white Christmas resonates strongly. So, the campaign was created to draw on this image and designed to communicate 3 key messages:

  • Skagen Denmark = Affordable Gifts with Style

  • Skagen Denmark = Ultra-Slim Award-Winning Danish Design from $195

  • Skagen Denmark = A wide range to choose from


TRADE MARKETING

A Hassle-Free Retail Solution

Still relatively unknown, the brand was seeking to increase distribution. idResults developed a trade marketing strategy along with sales tools the field force could use to build confidence and gain retailer commitment. This improved their efficiency (increased the number of sales calls per day), reduced the effort required to secure an order, and increased the average order value.












CONSUMER MARKETING - CALL TO ACTION

$50 Gift Voucher from the Founders & Owners of the Brand

To drive sales and capture attention, the decision was made to offer a $50 discount with retailers compensated for the cost value of the $50 retail reduction. An offer of this kind at Christmas was unheard off and posed considerable risk to the brands image. So, rather than openly discount the brand, idResults took a unique approach in the form of a Gift Voucher that was a personal gift from the founders and owners of the brand.




CONSUMER ADVERTISING

Diversity of range and Voucher Offer


CONSUMER BROCHURE

idResults produced a 12-page fold out consumer brochure that was supplied to stores and inserted in a nationally distributed high circulation magazine.



ONLINE

The Skagen Denmark website was updated to reflect the campaign.












A dedicated landing page engaged consumers and provided the information they needed.










Banners placed on the websites of key magazine titles generated traffic to the website and landing page.


LET’S GET VISIBLE

This was the name given to an initiative to maximise brand visibility in stores and ensure the campaign creative was executed in stores and reinforced the brand advertising.


Point of Sale material captured attention in stores.


This unique and innovative approach allowed Skagen Denmark to make a value offer, build goodwill, and secure retailer support. The execution was not perceived to be discounting and the results helped make Skagen Denmark the strongest performing brand in the market.



idResults are experts in web strategy and design for aspirational brands, trades, and services as well as healthcare professionals. For an obligation free and confidential discussion about your website or web strategy Call Us on 0419 491 485 or use our Contact Us Form