Discount an Aspirational Brand @ Xmas??
Updated: Jan 11
Unless offered at a time when it's expected, a price-off promotion can damage an aspirational brand. To do so during your most important sales period of the year would be madness. But Skagen Denmark broke the rules with a Xmas campaign created by idResults that made over 19 million impressions.
Control over retail pricing is critical to aspirational/luxury brands, and they go to great lengths to discourage and prevent retailers from discounting. The only exception is with end-of-line or end-of-season sales. 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 created and executed by idResults. It achieved 19 million impressions and resulted in a record sales increase. All without causing any damage to the brand's reputation or market position.
THE AUSTRALIAN WATCH MARKET
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 motivate consumers to purchase their brand for Christmas (sell-thru). Fail to get retailers on-board and you'll have 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 your 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 annual 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 become the fastest growing watch brand in the market.
The only thing supplied with the brief was an image featuring watches that were not even available in the market (left). idResults used this 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
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.
The beach tower offer removed the possible objections and made it easy for new retailers to say yes. It also ensured Skagen Denmark was one of the most visible watch brands in the market.
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 and to compensate retailers 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 brand's image. So, rather than openly discount the brand, idResults took a unique approach - a Gift Voucher that was a personal gift from the founders and owners of the brand.
The $50 discount was presented as a $50 GIFT VOUCHER and a gift from the owners of the brand.
Diversity of range and Voucher Offer
idResults produced a 12-page fold out consumer brochure that was supplied to stores and inserted in a nationally distributed high circulation magazine.
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