Your product or service – does it have a shelf life? Or is a re-brand required?

Following being asked “how long should you run a promotion for” recently, as the old adage says, “how long is a piece of string”?

#Service-Address #TSP #The-Social-Piggy #how-long-is-a-piece-of-string

 

With that in mind, it made us think about all the current news stories of how supermarkets are losing market share due to more and more people using the likes of Aldi and Lidl – the customer base is actually surprising as it covers all Social Economic Demographics. Is this down to cost or something else?

These two brands are slowly re-inventing how marketing works. They don’t tend to carry many well know brands as most of their branding is either their own brands or producers we have not heard of here in the United Kingdom but known across Germany and other parts of Europe. So how important is a name when it comes to marketing and branding? A recent example is how a £20,000 Harrods was being replicated by Aldi for £540.30 which is a saving of £19,459.70!

Well a simple comment could be said about that you are not comparing “Like for Like” but can you? Well here is an item about Aldi competing against high end wine traders and their decision to sell brandy for £29.99! Well this isn’t just any brandy, it is 1973 vintage Napoleon brandy! Yet is not just that brandy but other offers including:-

  • Speyside 30 Year Old Single Malt Scotch Whisky for £54.99 whilst specialist retailers are charging around £131 which is a saving of around 58%
  • The brandy mentioned above is normally seem to retail around £107 but the 1973 Napoleon Vintage Brandy “Armagnac Baron De Lustrac” but at £29.99 is less than a third of the price!
  •  A Hungrarian Dessert Wine Tokaji Aszu 6 Puttonyos 2008 is normally around £31 and won a Gold Medal at the International Wine and  Spirit Awards 2012 seems good value when compared to a lesser quality Tokaji Puttonyos 5 is being retailed by Selfridges for £35.99 and Fortnum and Mason for £23.50
  • Non Vintage Cru Champagne NV for sale at £22.99 which is around £20 cheaper when compared to comparable brands 
  • A Glen Orrin 30 Year Old Whisky for £54.99 which more respected retailers are selling for £80 more

And the list goes on and on with Edouard Delaunay Reserve Meursault at £18.99, a Magnum of Prosecco  at £15.99 plus what some repute to say is the “World’s Best Rum” El Dorado 15 Year Old Rum for £35.99!!

So, what does this say? This could be showing that they are buying same product but retailing it differently or are they bulk purchasing to obtain better pricing to and selling it a smaller margin to create faster turnover? Or they are selling at a much lower margin to appeal to every potential from any Social Economic Demographic?

All of which could be said – yet recent awards have shown a different perspective – it is the actual contents. The food and drink with the packaging has shown that the likes of Aldi and Lidl as well as small independent retailers are winning not just critics and experts but the main key factors – “Customers”! And it is all down to the product and how good it is to drink and eat.

This article from the Daily Mail is an example of how packaging similar to the established brands and products can create people to buy the products as it looks the same yet we ignore the brand name on the packaging.  This shows marketing done in a similar manner to existing brand can attract people just like using a name that is both brands. After all, “coffee is coffee” and “tea is tea” for exampl, as they are all using the same words because it describes the product or service.

So is there a shelf life to your product or service then? How do you define “Shelf Life“? Many companies will define the shelf life as being until they wish change direction or the product or service is not performing well or is this not always the case?

Tesco is a prime example of how you can still decide that a brand has reached the end of it’s shelf life despite generating over £1 Billion of annual sales – yet why change?

#ServiceAddress #TSP #TheSocialPiggy #Tesco #Lasagne          #ServiceAddress #TSP #TheSocialPiggy #Tesco #Everyday-Value #Spaghetti-Bolognese

It is not as if they needed to turn brand profits around as their sales turnover on that brand is more than most companies can only dream about. This article of why Tesco decided to re-brand Tesco Value was not because it had reached the end of it’s shelf life but more to do with customer perception of the packaging. The image was putting people off and couple this with the rise in sales from the likes of Sainsbury’s and Waitrose with their own brand plus the success of Aldi and Lidl – clearly shows that price and packaging sometimes does go hand in glove.

Aldi and Lidl have shown that price can win new clients because we aren’t always drawn to the main brand names we are used too. In essence, the product or the service doesn’t have a shelf life – what does have a shelf life is what is wrapped around the product or service.

Thus, take a look at what you do and how you do it, see the image you are portraying to your potential clients and clients and look at it. Is it a case of a re-brand? Just consider what Tesco did with changing their “Value” range to “Everyday Value” last year. The perspective of customers that people could sneer at what they had in their basket or trolley was the main factor in Tesco changing the name and packaging, yet the product or service stayed the same. It will be interesting to see how much this has increased the turnover but we are sure the brand turnover will rise from £1 Billion annual sales.

Now isn’t this worth replicating in your business? A simple re-brand or change of packaging every so often can do wonders to increase your bottom line and shows that your product or service is not the one with a shelf life after all……….

Articles mentioned above and their links are below:-