Tuesday, September 14, 2010

NO MORE PRICE WARS? the new face of retail advertising




When retail icon Wal-Mart finally had its first new slogan that guarantees us better life after the two decades of Always Low Price, we thought too, maybe it's finally time for the retail advertising world to leverage itself from quantity to quality.

Simon Burrett from Retail Times stated that big retailers have started to recognise the power of emotional stimuli, and the trend is growing to be bigger than ever.

retailers are learning to look beyond the rational realm of lower prices, better stores and better locations as motivational stimulus for customers. Instead, they are accepting that emotional factors can also be powerfully motivating...executives of large retail chains are being forced to accept what boutique stores and chains, non-retail marketers and ad agency professionals have known for a long time – that ‘warm and fuzzy stuff’ can drive a commercial result....

In fact, Target is probably the first big Australian retailer who has taken notice of this growing trend. A series of ads it produced after its repositioned marketing objective "100% happy" have all been targetting at consumer's emotional feeling rather than rational thought .

Here's one of my favorite.



the person (ILuvBritneySpears123 ...lol) who posted this ad on YouTube said in the description that this is the only tv ad that she/ he actually like and is HAPPY to watch, proving advertiser's success in achieving its marketing objective.

Besides Wal-Mart and Target, supermarket head Woolworths has also started to emphasise its promotional strategy on the tagline Fresh Food People, after scrapping off the old Safeway name which seemed to restrict the retailer's possibilities of changing.



This is the new 2010 ad. I found it interesting how there is no pricing mentioned in this short TV spot at all, when the major selling point is solely the "freshness" of Woolworths' products, creating a positive vibe for the perspective consumers.

Adage Encyclopedia categorises the marketing message of retail advertising into promotional and institutional. While promtional message carries a specific product and a message (such as price off) alongside with it, institutional message, vice versa, focuses on the image of the retailer itself. Instead of using only a single category, advertisers nowadays usually integrate both sides of the messages, despite an inclination towards institutional.

So, no more price wars? or is it just a temporary peace?
Well as a devoted bargain shopper, let's just hope that it is not so over yet.... :)

-----------------------------------------------------------------------------------------------
Credits:
Target's "Every Colour You Can Dream Of"

Product: Target Colour 2009

Client: Target

Agency: The Campaign Palace, Melbourne

Production Company: PRODIGY

Director: Dael Oates

Exec Producer: Jonathan Samway

DOP: Peter Eastgate

Animator Designer: Matt Boug

Animators: Lewis Morley & Brian Carlin

Post Production: Animal Logic

Creative Directors: Gerhard Myburgh & Brent Liebenberg

Creative: Jacqui Paterson & Jessica Harold

TV Production: Fiona Gillies

Account Management: Jayne Driver



Woolworths' "Maria and Stavros", I'm still struggling to find the responsible agencyl. Will put it up as soon as it's figured.

References:

Warc - Retail advertising: something special


Retail Times - Emerging trends in retail advertising


Advertising Age - Retail advertising

J.

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